U.S. Sportsbooks Hit Record Revenue Despite Slower Betting Growth

U.S. sportsbooks generated record revenue in 2025, even though overall betting growth slowed compared with previous years.

According to the American Gaming Association’s State of the States report, commercial sports betting revenue reached $16.89bn in 2025. This was up 22.6% from the previous year. The figure does not include tribal sportsbook revenue, including mobile betting in Florida.

New York remained the biggest sports betting market in the U.S., with more than $2.5bn in annual sportsbook revenue. Illinois, New Jersey and Ohio also passed $1bn each.

The stronger revenue came even as betting volume grew at a slower pace. Earlier this year, the AGA reported that commercial sportsbooks handled $166.94bn in wagers in 2025, up 11.3% from 2024. This means revenue increased roughly twice as fast as handle.

One reason is that sportsbooks kept a larger share of wagers. The implied national hold rose to about 10.2% in 2025, compared with 9.2% in 2024 and 6.9% in 2019.

Operators have also focused more on parlays, same-game parlays and in-play betting, while spending less heavily on promotions.

Another key point is that no new state approved sports betting legislation in 2025, the first such year since PASPA was overturned in 2018. Missouri launched late in the year, but too late to have a major impact on national results.

Sports betting tax revenue also hit a record, rising 32.4% to $3.71bn as several states increased taxes or limited promotional deductions.