Photo credit: Alex Korolkoff via unsplash.com
It has been three years since the landmark decision by the U.S. Supreme Court to lift the federal ban on sports betting. The Professional and Amateur Sports Protection Act was first enacted in 1992 but repealed in May 2018.
Former New Jersey Governor Chris Christie gets a large portion of the credit for defeating this law, but there were other states that pitched in as well. Professional sports leagues were fighting hard against the legalization of sports betting, but they have now all started to partner with sportsbooks and companies in the industry.
Sports betting in the United States has exceeded expectations since 2018 and there are now more than 20 states that have legalized sports wagering in some form – and there are more on the way. Nevada used to be the only major sports betting option in the US but that is no longer the case.
■ Online betting ■ In-person only ■ Legal but not yet live
The total sports betting handle since June 2018 is now more than $51.7 billion. Nevada and New Jersey have combined for over $28 billion in handle as these are the two biggest markets.
Total sports betting revenue since the federal ban was lifted is $3.17 billion, and again the two biggest markets have flown past the other states. Tax revenue that has been given to state governments from sports betting is $509.2 million.
The average hold rate in the United States since June 2018 is 7.2 percent, and most states have been right around that number each month. Most states have gone on long streaks where they have set new handle, and revenue marks each month.
FanDuel Sportsbook has emerged as the top online sports betting option in the U.S., accounting for a 40% market share as of December 2020. DraftKings is quickly closing the gap on its rival, as that company has been between 20-30% market share to start 2021.
New Jersey Surpasses Nevada
One of the biggest surprises in the first three years of US sports betting is that Nevada is no longer the sports betting leader. That title now belongs to New Jersey, and it has been that way since the end of 2019.
New Jersey is the only state in the U.S. that has seen a monthly sports betting handle number of over $900 million, and it has happened three times. The current U.S. record for monthly betting handle was set in December 2020, and it was $996.3 million.
Nevada still leads the way with a total handle of $14.5 billion, but that state also had a massive headstart on the rest of the country. New Jersey has brought in the most sports betting revenue as the total is now more than $920 million.
Pennsylvania and Illinois are the next two largest sports betting markets, and those two states should flip positions several times in the coming years. Colorado, Indiana, Michigan, and Virginia are all competing to become the fifth-largest sports betting market in the United States.