Sports Betting Revenue by State: A Comprehensive Breakdown

New York: The Market Leader

New York consistently ranks as the top revenue-generating state for sports betting. With mobile betting legalized in January 2022, the Empire State witnessed an explosive surge in handle and tax revenue. Monthly handles have frequently exceeded $1 billion, generating hundreds of millions in tax revenue annually due to a high tax rate of 51% on online sportsbook operators.

New Jersey: The Early Adopter

New Jersey was a pioneer in legal sports betting following the 2018 Supreme Court ruling. As a result, the state built a robust infrastructure early on, with both retail and online betting channels. Monthly handles often hover around $800 million to $1 billion, with significant revenue generated from mobile wagering. The Garden State has become a model for other states in regulatory and tax frameworks.

Illinois: Rapid Expansion

Illinois entered the sports betting arena in March 2020 and has quickly climbed to become one of the top five states by handle. The combination of a large population and mobile betting access has driven revenue upwards. With consistent monthly handles surpassing $600 million, Illinois generates tens of millions in tax revenue annually.

Nevada: The Traditional Powerhouse

Nevada has long been associated with sports betting, especially with Las Vegas as its epicenter. However, its dominance has slightly waned due to mobile-first markets like New York and New Jersey. Despite this, Nevada still boasts a strong showing, particularly during major sporting events. Its revenue is more balanced between in-person and mobile betting compared to newer markets.

Pennsylvania: High Tax Yield

Pennsylvania’s sports betting market is one of the most profitable for the state due to its high tax rate of 36%. Although the state doesn’t always top the handle charts, it consistently ranks among the highest in terms of actual tax revenue. With major operators present and online betting prevalent, Pennsylvania continues to benefit financially from its regulatory model.

Michigan: Competitive and Growing

Michigan launched sports betting in 2020 and quickly embraced online betting in 2021. The state has demonstrated healthy growth, with monthly handles typically exceeding $400 million. Tax revenue is stable, and the market is competitive with the presence of numerous operators, including tribal casinos.

Indiana: Strong Despite Smaller Population

Indiana has outperformed expectations since legalizing sports betting in 2019. Despite having a smaller population than top states, it regularly posts monthly handles over $300 million. The state’s centralized location and proximity to non-legalized markets boost its performance.

Colorado: Innovative Market

Colorado has been notable for its operator-friendly tax structure and wide range of available sportsbooks. Since launching in 2020, it has recorded steady growth in both handle and revenue. Monthly handles range between $250 million and $400 million, with year-over-year gains continuing.

Virginia: Mobile-First Success

Virginia launched sports betting in 2021 as a mobile-only market. This strategy has paid off, as the state quickly reached monthly handles near $400 million. Its performance underscores the effectiveness of focusing on mobile platforms in maximizing user engagement and revenue.

Tennessee: No Casinos, Strong Revenue

Tennessee is unique in offering only online sports betting with no physical casinos. Despite this limitation, it consistently posts monthly handles over $300 million. Its model shows that physical infrastructure is not always necessary for a successful sports betting program.

Other Noteworthy States

Arizona: Growing rapidly with both tribal and commercial sportsbooks.
Maryland: Recently launched mobile betting with promising early results.
Louisiana: Shows strong regional engagement, particularly in New Orleans.
Ohio: A recent entrant with high expectations due to population size and sports culture.

Summary Table (Estimated Monthly Handle and Tax Revenue Ranges)

State	Avg. Monthly Handle	Estimated Annual Tax Revenue
New York	$1.5B+	$700M+
New Jersey	$1B	$150M+
Illinois	$700M–$900M	$130M+
Nevada	$400M–$600M	$60M–$80M
Pennsylvania	$600M	$200M+
Michigan	$400M–$500M	$100M+
Indiana	$300M–$400M	$50M–$70M
Colorado	$300M–$400M	$50M
Virginia	$400M	$50M–$70M
Tennessee	$300M–$400M	$60M

Final Thoughts

Sports betting revenue varies significantly by state due to differences in tax structures, population, and betting accessibility. States that have embraced mobile betting and established clear regulatory frameworks continue to see the highest returns, making them models for future legislation across the country.