Since the U.S. legalized sports betting in 2018, the industry has exploded, with annual gross gaming revenue skyrocketing from $400 million to a staggering $11 billion in just five years. This phenomenal growth is fueled by states like Nevada, New Jersey, and Pennsylvania, which embraced early legalization and robust regulations. Today, 38 states plus D.C. have joined the betting frenzy, transforming sports betting into a billion-dollar bonanza that’s captivating the nation. Discover the surprising journey of this young yet booming industry and what it means for the future of gambling in America.
The worldwide sports betting business has expanded at a rapid pace in recent years, with the United States accounting for a sizable portion of that development.
This graph, created by Visual Capitalist Marcus Lu, depicts the annual gross gaming revenue (GGR) from sports betting in the United States, using data from the American Gaming Association.
What is GGR?
GGR is the total amount wagered minus winnings. For example, if a gambler wagers $1,000,000 at a casino and wins $900,000, the GGR is $100,000.
Sports Betting Still a Young Industry
Sports betting became legal in the United States in May 2018, following the Supreme Court’s decision to overturn the 1992 Professional and Amateur Sports Protection Act (PASPA). PASPA effectively outlawed sports betting statewide.
Since 2018, gross gaming income has increased from $400 million to $11 billion by 2023.
Betting is especially popular in Nevada, New Jersey, and Pennsylvania, thanks to early legalization, effective regulatory frameworks, and strong sports cultures.
Nevada, buoyed by Las Vegas, generated more than $5 billion in commercial gaming revenue (including other casino revenue streams) in the first four months of 2024, while New Jersey and Pennsylvania each generated more than $2 billion.
According to the American Gaming Association, 38 states (including the District of Columbia) have authorized sports betting to date.
Last year, GreatGameIndia reported that Public Health England, in a report released in September 2021, quantified the costs of gambling to UK society.
