The tax advantages for each of the 38 states and the District of Columbia that allow and permit sports betting increased significantly in the previous year.
A study conducted by the online loan marketplace and personal finance website LendingTree indicates that state taxes on parimutuel and sports betting exceeded $2.479 billion in the previous year. The state tax benefit in 2022 was around $1.84 billion; this represents a 34.7% increase from the roughly $2.5 billion.
“It’s not breaking news that sports betting is big, big business in this country. It’s practically impossible to watch any sporting event today — in person or otherwise — without being inundated with advertising for sports betting sites such as DraftKings and FanDuel,” a release from LendingTree explained.
It’s part of the mainstream of sports conversation today in ways it never has been. That big business means big money for the states in which it’s legal,” LendingTree’s Matt Schulz wrote.
Sports gambling is permitted in 38 states as well as Washington, DC, online and in person. In 2024, there will be five more states with active sports betting laws or ballot initiative projects.
New York Is the Leader
When it comes to gaming revenue and tax revenue, none of the 38 states compares to New York. Since its launch in January 2022, online sports betting in the Empire State has helped the state rise to the top of the US sports betting market.
In 2023, New York received over $876 million in taxes from the proceeds of sports betting. Of the states that allow commercial sports betting, New York has the most residents while Texas and California do not. New York also has one of the highest tax rates imposed on sportsbooks at 51%.
With a staggering 36% tax rate on sportsbook operators, Pennsylvania is the next most populous state with the highest amount of sports betting taxes, coming in at $176.6 million. Third place went to Indiana with $175.4 million, Illinois to fourth place with $161.4 million, and Ohio to the fifth place with $136.3 million.
Sixth place with $111 million went to New Jersey, the state that spearheaded the legal case that made it all the way to the US Supreme Court, which decided in favor of states having the authority to decide whether sports gambling is allowed within their borders in May 2018.
In addition to the money the federal government received from the excise tax it imposed on each wager, states also received approximately $2.5 billion in tax revenue.A quarter of all bets go to the federal government.
Sports Gambling Is Accepted
In order to determine their views on sports gambling, LendingTree surveyed more than 2,000 US consumers between the ages of 18 and 78. They also totaled state sports betting taxes from regulatory reports.
Only 18% of US adults oppose unrestricted sports betting nationwide, according to the pollsters, while 44% of individuals in the country do. On whether increased sports betting will result in an increase in cheating and match-fixing, the public seems divided.
47% of those surveyed expressed concern that further scandals may result from legal sports betting as it continues to spread.
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