In this article, we will take a look at 24 states where sports betting is legal. If you want to skip our detailed analysis of the sports betting market, you can go directly to 5 States Where Sports Betting Is Legal.
In one of our previous articles about the biggest gambling cities, we mentioned that the US has the most casinos in the world. The gambling market contributes greatly to the economy every year while also creating jobs across the country.
Similarly, the sports betting market can have a positive impact on the economy. According to a study by Williams Honors College at The University of Akron, legalizing sports gambling online can boost the real GDP per capita of a state in the US by $1,073.28. Where sports gambling is legalized fully, online and retail, the GDP per capita of a state can grow by an average of $2,845.88.
The sports betting market is thriving and expected to reach new highs in the coming years. Before we take a look at 24 states where sports betting is legal, let’s take a look at the sports betting market and what some of the key market players are up to.
The Global Sports Betting Market: A Bright Outlook
According to a report by Research and Markets, the global sports betting market was valued at $83.65 billion in 2022. Looking forward, the market is expected to grow at a compound annual growth rate (CAGR) of 10.3% during 2023-2030, and reach a value of around $182 billion by the end of the forecast period. The growing popularity of smartphones and internet services, and the evolving regulatory landscape of gambling markets around the world, all contribute to the increased demand for sports betting. Improvements in AI as well as technological advancements that enhance the prediction algorithms in betting apps and software are expected to further augment market growth. The online segment of the sports betting market is projected to experience explosive growth in the coming years.
Moreover, the growing number of sporting events, leagues, and competitions around the world such as FIFA World Cup, NFL, UEFA Europa Conference League, and UEFA Champions League, among others, are expected to positively influence market growth during the forecast period. On August 16, Reuters reported that with a record number of women globally placing bets, British bookmakers have reported a significant surge in bets on the Women’s World Cup, compared to previous years. Britain’s William Hill, now a subsidiary of 888 Holdings plc (LON:888), said it had already taken 900,000 bets on the Women’s World Cup, the pinnacle of women’s soccer which was then being hosted by Australia and New Zealand. While the US is the most successful nation in Women’s World Cup history, Spain went on to win the 2023 FIFA Women’s World Cup, beating England 1-0 in the final.
However, strict rules governing sports betting in different regions can hamper market growth. The regulation of sports betting varies from country to country, and state to state in the US. On August 11, Reuters reported that Wynn Resorts Limited (NASDAQ:WYNN) announced that they are closing up WynnBET, its online sports betting and iGaming platform, in a number of states in the US due to a lack of transparency in the regulatory environment and rising costs to attract new customers. WynnBET operations are closing in eight US states, including West Virginia, where it launched just a few months ago. Wynn Resorts Limited (NASDAQ:WYNN) ranks among the biggest betting companies in the world, and develops and operates high-end hotels and casinos.
A Look at Some of the Other Biggest Companies in the Sports Betting Market
Market players are looking to increase their market presence and utilize the increased number of sporting events around the world to boost their revenues. On June 16, CNBC reported that a major sports betting company, DraftKings Inc. (NASDAQ:DKNG), made an all-cash offer worth $195 million for the Australian company Pointsbet Holdings Ltd’s (ASX:PBH) US assets, topping an earlier bid of $150 million by Fanatics. However, as DraftKings Inc. (NASDAQ:DKNG) is a major sports betting company in the US with a huge market share, the report mentions that regulatory challenges could get in the way of the deal. DraftKings Inc. (NASDAQ:DKNG) CEO Jason Robins said:
“While we continue to focus on operating more efficiently and driving substantial organic revenue growth in the United States, we will also look to prudently capitalize on compelling opportunities at attractive valuations, as is the case with PointsBet’s U.S. business.”
On June 13, Reuters reported that Entain Plc (LON:ENT) announced that it will be acquiring STS Holding S.A. (WSE:STH), a Poland-based sports betting operator, for around $946 million in an effort to increase their business in Europe. Entain Plc (LON:ENT) is an international sports betting and gambling company that has been rapidly expanding in Europe through acquisitions. Currently, Entain Plc (LON:ENT) owns the Coral chain of betting shops in the UK as well as brands like Ladbrokes, bwin, PartyPoker, and Sportingbet, among other subsidiaries.
In other news, The Walt Disney Company’s (NYSE:DIS) ESPN and the casino gambling company Penn Entertainment Inc. (NASDAQ:PENN) have joined forces to establish a sports betting business under the name of ESPN Bet, as reported by Reuters on August 8. Under the agreement, Penn Entertainment Inc. (NASDAQ:PENN) will make a cash payment of $1.5 billion as well as offer about $500 million worth of warrants to ESPN. Penn Entertainment Inc. (NASDAQ:PENN) will rebrand its sportsbook service across 16 US states, where it has licenses, and relaunch it as ESPN Bet.
On August 9, Penn Entertainment Inc. (NASDAQ:PENN) reported strong earnings for the fiscal second quarter of 2023. The company reported earnings per share (EPS) of $0.48, surpassing EPS estimates by $0.01. The company reported a revenue of $1.67 billion and outperformed revenue estimates by $11.47 million.
Now that we have looked at what some of the major players in the global sports betting market are up to, let’s take a look at 24 states where sports betting is legal.
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Methodology
In this article, we have listed 24 states where sports betting is legal. To list the states where sports betting is legal, we consulted the American Gaming Association. The American Gaming Association is a US gambling industry association and this database provided us with information on the states where sports betting is legally offered through retail and/or online sportsbooks. We used the latest data available, which is as of September 28, 2023. We then narrowed down our selection to rank the 24 states where sports betting is being legally offered through retail as well as online sportsbooks.
It is important to note that Washington, DC, is a district and not a state, and so it will not be included in our list of 24 states where sports betting is legal. DC stands for District of Columbia, and according to the latest reported data, sports betting is being legally offered through both online and retail in the District of Columbia.
To rank these states, we consulted the Legal Sports Report. We used the latest report, which was also published on September 28, 2023, and which provided us with sports betting handles’ to date data on state level. Handle refers to the total amount of money wagered by bettors. We have listed 24 states where sports betting is legal below in ascending order based on their total sports betting handle to date across all active markets.
24 States Where Sports Betting Is Legal
24. Kentucky
Total Sports Betting Handle: N/A
Sports betting legislation in Kentucky officially went into force in June this year. Retail sports betting started on September 7, 2023, followed by the launch of online mobile betting on September 28.
Some of the top sports betting stocks to consider researching include Penn Entertainment Inc. (NASDAQ:PENN), 888 Holdings plc (LON:888), Wynn Resorts Limited (NASDAQ:WYNN), DraftKings Inc. (NASDAQ:DKNG), and Entain Plc (LON:ENT).
23. Wyoming
Total Sports Betting Handle: $279 Million
Sports betting was made legal in Wyoming in 2021. However, Wyoming is one of the least populated US states and so it has a total sports betting handle of just $279 million to date.
22. Arkansas
Total Sports Betting Handle: $486 Million
Sports betting has been legal in Arkansas since 2018. However, online sports betting launched only in 2022. As of now, Arkansas has a total sports betting handle of around $486 million.
21. Oregon
Total Sports Betting Handle: $1.49 Billion
Oregon legalized sports betting in 2019. According to the most recent reported data, the state of Oregon has a total sports betting handle of $1.49 billion to date.
20. Rhode Island
Total Sports Betting Handle: $1.72 Billion
Retail sports betting has been live in Rhode Island since 2018, and online sports betting since 2019. The state has a small population, which consequently limits the upside of long-term sports betting expansion. However, Rhode Island has a total sports betting handle of around $1.72 billion as of September 2023, and ranks among the top 20 states in our list of states where sports betting is legal.
19. Kansas
Total Sports Betting Handle: $1.85 Billion
Kansas legalized sports betting in 2022. The state of Kansas has a total sports betting handle worth $1.85 billion to date.
18. West Virginia
Total Sports Betting Handle: $2.07 Billion
West Virginia passed a bill to legalize sports betting in 2018, following a US Supreme Court ruling. Despite its small population, the state of West Virginia has a total sports betting handle of $2.07 billion as yet.
17. New Hampshire
Total Sports Betting Handle: $2.4 Billion
The state of New Hampshire legalized sports betting in 2019. Offering online as well as retail sports betting, New Hampshire has a total sports betting handle of $2.4 billion so far.
16. Massachusetts
Total Sports Betting Handle: $2.58 Billion
Massachusetts legalized sports betting in 2022. Online and retail sports betting became operational in 2023, and the state already has a total sports betting handle of $2.58 billion to date.
15. Connecticut
Total Sports Betting Handle: $2.83 Billion
Sports betting has been legal in Connecticut since 2021. With a total sports betting handle of $2.83 billion to date, Connecticut ranks among the top 15 in our list of states where sports betting is legal.
14. Maryland
Total Sports Betting Handle: $3.57 Billion
Retail sports betting has been live in Maryland since 2021, but online sports betting finally started in 2022. Maryland is a lucrative market in the sports betting industry, and currently the state has a total sports betting handle of around $3.57 billion.
13. Louisiana
Total Sports Betting Handle: $3.95 Billion
In-person betting in Louisiana started in 2021, and by 2022 online sportsbooks were live too. Louisiana has a total sports betting handle of around $3.95 billion to date.
12. Ohio
Total Sports Betting Handle: $4.15 Billion
After a long wait, sports betting was legalized in Ohio on January 1, 2023. According to the most recent reported data, the state of Ohio already has a total sports betting handle worth $4.15 billion to date.
11. Iowa
Total Sports Betting Handle: $6.53 Billion
Iowa passed a bill in 2019 and was among the first states to adopt legislation allowing regulated sports betting. The state of Iowa currently has a total sports betting handle of $6.53 billion to date.
10. Virginia
Total Sports Betting Handle: $11.04 Billion
Virginia launched its first sports betting websites in 2021, and retail sports betting is also allowed in the state. With a total sports betting handle of $11.04 billion to date, Virginia ranks among the top 10 states in our list of states where sports betting is legal.
9. Arizona
Total Sports Betting Handle: $11.33 Billion
Arizona legalized sports betting in 2021, and has since become one of the fastest growing markets for online sports betting. According to the latest reported data, Arizona has a total sports betting handle of $11.33 billion.
8. Michigan
Total Sports Betting Handle: $11.49 Billion
In Michigan, in-person betting was introduced in 2020 and online sportsbooks launched in 2021. Michigan is home to a number of major sports teams, and has a total sports betting handle of $11.49 billion to date.
7. Indiana
Total Sports Betting Handle: $12.99 Billion
Indiana launched online sports betting in 2019, just a few months after the passing of the legislation by the Indiana Legislature. According to the latest reported data, Indiana has a total sports betting handle of almost $13 billion to date.
6. Colorado
Total Sports Betting Handle: $13.07 Billion
The state of Colorado officially legalized sports betting through a voter referendum in November 2019. With a robust online and retail sports betting industry, and a total sports betting handle of $13.07 billion to date, Colorado ranks high in our list of 24 states where sports betting is legal.
Companies that are expected to benefit as the sports betting market grows include Penn Entertainment Inc. (NASDAQ:PENN), 888 Holdings plc (LON:888), Wynn Resorts Limited (NASDAQ:WYNN), DraftKings Inc. (NASDAQ:DKNG), and Entain Plc (LON:ENT).
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Disclosure: None. 24 States Where Sports Betting Is Legal is published on Insider Monkey.
