92 Billion in Revenue in 2023

The American sports betting industry has hit a milestone by generating a record $10.92 billion in revenue for the year 2023, according to the American Gaming Association’s annual report. This remarkable achievement marked a substantial 44.5% surge from the previous year, breaking the record set in 2022.

The significant growth can be attributed to a total handle of $119.84 billion, reflecting a 27.8% year-over-year increase, alongside an improved year-over-year sportsbook win percentage of 9.1%, up from 8.1% in 2022. The addition of five new legal betting states, including Kentucky, Maine, Massachusetts, Nebraska, and Ohio, going online in 2023 further bolstered the industry.

Ohio emerged as a sports betting powerhouse, raking in $936.6 million in revenue to become the fourth-highest-earning state nationwide. Collectively, the five new states contributed $1.49 billion to the industry's revenue in 2023. Meanwhile, established leaders such as New York, New Jersey, and Illinois surpassed the billion-dollar revenue mark for the first time.

In a quarter-by-quarter analysis, the industry also achieved a record by amassing $3.41 billion in revenue in the fourth quarter of 2023, signaling a 30.8% increase from the same period in 2022. Expectations for further growth are high, with projections suggesting Americans bet a staggering $23.1 billion on Super Bowl LVIII.

Looking ahead, the industry anticipates a promising first quarter of 2024, with North Carolina launching legal online sports betting in time for March Madness. Although the outlook for the year remains positive, concerns linger about the pace of state legalization. The AGA notes that 38 states plus DC have already legalized sports betting, leaving fewer states yet to join the trend.

In wider industry developments, the American gambling sector, including land-based casino gambling and internet gambling, enjoyed a record-breaking year with total revenue reaching $65.52 billion in 2023, a 10% increase from the previous year. Notably, land-based gambling accounted for a substantial $50.02 billion, representing the bulk of industry revenue.

Furthermore, gambling taxes played a vital role, generating $14.4 billion for state and local governments in 2023, underscoring the economic significance of the gambling industry in providing revenue for public services and initiatives.