The United States’ legal sports betting sector is experiencing an unprecedented surge, with operators anticipating a series of record-setting revenue reports by the end of 2025. The industry is currently positioned for strong growth, mainly driven by the renewed football betting season, which has led to increased engagement.
According to Legal Sports Report, the industry is projected to reach a total handle of $164 billion across all markets by 2025, representing a 9.5 percent increase from the previous year. Revenue figures are expected to reach $16 billion by year-end, reflecting a 17 percent growth rate. This outlook marks a pivotal period for determining the leading operators in a rapidly evolving and expanding market.
Key players dominating the industry
The top five markets in the US have retained their positions from 2024. New York continues to lead the nation, on track for $25.8 billion in handle and $2.47 billion in revenue, both representing double-digit year-on-year increases. Its current hold of 9.8 percent would also mark a local market record.
Illinois has firmly established itself as the second-largest market, opening a considerable lead over its competitors. The state is projected to reach $15.9 billion in handle and $1.42 billion in revenue for 2025, with both figures up approximately 15 percent from 2024. Notably, a larger portion of this revenue is now contributing to the state treasury as a result of recent tax increases.
Following these leaders, New Jersey, Ohio, and Pennsylvania complete the top five. Together, these five markets account for roughly 45 percent of all legal betting handle and 43 percent of nationwide revenue.
Mixed fortunes across state markets
While the industry is flourishing, some markets are experiencing a slight downturn in betting volume. New Jersey, a historically strong performer and early adopter, is the most prominent state in this category, with its handle target down 3 percent to $12.4 billion.
However, improved margins are still expected to boost its revenue by 10 percent to $1.20 billion. This shift in New Jersey is attributed to the broader expansion of sports betting nationwide and a potential cooling of the regional tourism economy. Rhode Island, West Virginia, and Mississippi are also seeing a modest reduction in volume in 2025, while Nevada and Michigan’s handle outlooks remain almost flat compared to 2024. Nevada is expected to slip behind Massachusetts into eighth place for handle and fall outside the top ten for revenue.
The driving force behind revenue growth
A notable trend is that revenue is increasing at a faster rate than betting volume. This disparity is primarily due to a rising national “hold” rate, which is currently tracking at 9.8 percent for 2025, up from 9.2 percent last year. This seemingly slight increase translates into hundreds of millions of pounds in additional revenue for operators, even without a corresponding rise in overall betting volume.
However, an increased win rate for operators can result in a reduced return for customers and a shrinking pool of available player funds, presenting a challenge as acquiring new customers becomes more difficult in maturing markets. The growing popularity of parlays and other long-shot bets among casual bettors is a key factor driving much of this specific revenue growth.
NFL betting surge adds to record projections
Complementing the broader market growth, the American Gaming Association projects that Americans will wager an estimated $30 billion on the 2025 NFL season alone, an 8.5 percent increase from last year’s $27.6 billion. This spike highlights the NFL’s outsized role in driving sportsbook engagement during peak season. As per the report, football already expected to generate at least $20 billion in wagers across all leagues and formats this year, NFL betting alone accounts for a significant share of total football handle, aligning closely with overall industry growth forecasts. Beyond football, basketball also plays a crucial role as the busiest betting sport in the US by volume, with the return of NBA and NCAA men’s and women’s action making a substantial contribution to year-end totals.
Future expansion
Missouri is expected to join the list of states with legal sports betting, likely boosting national growth in 2026. With over 6 million residents and strong existing interest, FanDuel reports that 110,000 Missouri users are currently betting elsewhere; the state shows clear demand. GeoComply blocks millions of betting attempts annually, and forecasts suggest that Missouri could generate $5 billion in handle and $500 million in revenue each year, placing it just below Indiana and Tennessee as a mid-tier market.
