WASHINGTON, D.C., February 19, 2025 – The American sports betting industry reported a record revenue of $13.71 billion in 2024, surpassing the previous year’s record of $11.04 billion, according to the American Gaming Association (AGA) annual report released on Wednesday.
Significant Increase in Bet Volumes
During the AGA’s State of the industry call, it was revealed that legal sportsbooks processed nearly $150 billion worth of bets, marking a 22.2% rise from 2023. The national win rate for sportsbooks stood at 9.3%, slightly higher than in 2023, at 9.1%.
Most Lucrative Quarter on Record
The AGA also reported that Q4 2024 was the industry’s most profitable quarter, with a revenue of $3.66 billion, a 7.3% increase from the previous record set in Q4 2023. Despite NFL favorites winning at historic rates during the 2024 season, this achievement came.
Industry Evolution and Digital Growth
“Last year saw brick-and-mortar revenue growth slow, while online gaming and sports betting continued to thrive,” said David Forman, AGA vice president of research. “These past few years have reshaped the industry, and the revenue pie, while it’s much bigger, looks very different than it used to. That’s increasingly driven by new online gaming options available to more people than ever before,” according to ESPN.
Digital Gaming Revenue Surges
Forman mentioned that 30% of all commercial gaming revenue came from digital sources in 2024, compared to 25% in 2023 and 13% in 2021.
Expansion of Legal Sports Betting
As of February 2025, 38 states and Washington, D.C., have legalized some form of sports betting. However, only 24 jurisdictions offer full online sports betting with multiple operators. North Carolina and Vermont contributed to record revenue in their first year of operation.
Top Sports Betting Markets
New York maintained its position as the largest sports betting market in the U.S., generating $2.1 billion in revenue for 2024. Illinois surpassed New Jersey to become the second-largest market, with both states exceeding $1 billion in annual sports betting revenue for the first time.
Growth Driven by Existing Markets
“A lot of the growth really was driven by existing markets. Even markets that have been online for some time now, we saw really good growth,” Forman told ESPN in a follow-up call, highlighting Massachusetts (40% revenue growth) and Maryland (23%) as key examples. “So really it’s getting new people into the ecosystem and then continuing to engage with folks that are already betting on sports.”
Future of Sports Betting
The industry is expected to add potentially only one new state in 2025. Missouri legalized sports betting via a ballot initiative in November and is expected to launch by mid- to late-summer.
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