The States Winning the Sports Betting Race & Why

What’s Going On Around The Country

The U.S. sports betting industry hit $165.58 billion in total handle in 2025, generating $16.80 billion in gross gaming revenue at a national hold rate of 10.15%, contributing $3.66 billion in state tax revenue. ^[1] Through the first quarter of 2026, U.S. sportsbooks had already processed $40.47 billion in handle, tracking for another record year. 

Credit: DraftKings Sportsbook – Screenshot captured by Chad Nagel on 14 June, 2026 – 07:59 UTC 

Ten states alone, including New York, Illinois, New Jersey, Ohio, Arizona, Pennsylvania, Massachusetts, Nevada, Virginia, and North Carolina, processed more than $113.87 billion in combined handle in 2025, roughly 69% of all wagers placed nationwide. More than three-quarters of all U.S. wagers originated from just 12 states, each ranking among the top 20 states by population, each with legalized online sports betting and a large number of operators. ^[2]

At the other end of the spectrum, South Dakota's $10.8 million in handle, Montana's $66.8 million, and Wyoming's $234.5 million reveal that not all states are cashing on the sports betting gold rush. 

New York Marches To The Beat Of Its Own Drum

Despite operating under a 51% tax rate on online gross gaming revenue, New York generated $26.33 billion in handle in 2025, collecting over $1.30 billion in state taxes alone.

New York's roughly 20 million residents, concentrated in one of the world's densest metropolitan areas, give the state a massive base. What New York adds on top of population is 11 professional sports franchises across every major league. The Yankees' postseason and the Giants' midseason runs in 2025 translated into record monthly handles. ^[3]

Credit: BetMGM Sportsbook – Screenshot captured by Chad Nagel on May 25, 2026 – 08:48 UTC

When New York launched online betting in January 2022, the market immediately became the largest in the country. ^[1] Illinois followed a similar trajectory after launching mobile, now sitting comfortably at number two with $15.53 billion in handle and a hold rate that leads the top five at 14.52%. 

Why Some Markets Are On Struggle Street

South Dakota's nearly invisible handle is in part because sports betting is confined to Deadwood and tribal casinos. Bettors cannot pull out a smartphone and wager from their couch in Sioux Falls. ^[4]

 In Montana, the state operates sports betting exclusively through its lottery system and approved retail locations, with the state collecting the vast majority of revenue while private operators receive just 10%.  ^[5]

Mississippi, which has retail-only betting with no statewide mobile platform, posted $379.1 million in handle in 2025 despite being the 34th largest state by population. Its neighbor, Tennessee, with a nearly identical population but a full mobile-first model, posted $6.38 billion.

States that restrict online betting to retail locations, tribal compacts, or state monopolies generate a fraction of the handle that comparable mobile markets with free competition produce. ^[6]

Population and Income Are Necessary But Not Sufficient

A high population is a prerequisite for a top-tier handle but not a guarantee of it. Pennsylvania's 13.2 million residents produced $8.86 billion in handle in 2025, placing it sixth nationally.

North Carolina's 11.3 million residents, despite only having had online mobile betting since March 2024, posted $7.27 billion, already cracking the national top ten. North Carolinians have now wagered more than $13 billion on sports since mobile betting launched in 2024, far exceeding early projections. ^[7]

Credit: FanDuel Sportsbook – Screenshot captured by Chad Nagel on 14 June, 2026 – 07:58 UTC 

What North Carolina shows is how a mobile market with competitive operators can reach critical mass. The combination of all major sportsbook brands, an operator-favorable 18% tax rate, and major sports teams (Panthers, Hurricanes, and UNC) creates a fast-ramping market.^[8]

Income also plays a big role. New York, which is home to 400,000 millionaires, has a per-capita handle of $116, while Massachusetts, which has the highest median income in the country, recorded an $8.53 billion handle in 2025 despite a population of just 7.2 million.

Regulations Holding Back States

California and Texas together have approximately 71 million residents and zero legal statewide sports betting as of 2026. [9] California alone is home to nearly 40 million people and some of the world's most valuable sports franchises. Texas has 11 professional sports teams across major leagues, including three NBA franchises, two NFL teams, and two MLB teams. ^[9]

In 2025, New York's roughly 20 million residents generated $1.32 billion in sports betting tax revenue. California and Texas combined at a similar per-capita rate would generate over $4.62 billion in potential taxes annually. ^[10]