Why this market is moving now
- Sports betting revenue rose to $16.96 billion in 2025, a record, on $166.94 billion of handle.
- State taxes from sportsbooks grew 32.4% to more than $3.7 billion in 2025.
- Prediction markets listing sports contracts are in litigation with state regulators; the AGA says they diverted over $500 million in potential tax revenue.
- 39 states, DC and Puerto Rico had authorized sports betting by 10 February 2026.
Key figures
Each figure names the source it came from. Open the source list below to read the quoted line.
| Figure | Value | Year | Source |
|---|---|---|---|
| US legal sports betting revenue hit a record $16.96 billion in 2025, per the American Gaming Association. | 16.96 USD billion | 2025 | ESPN |
| Americans legally bet $166.94 billion on sports in 2025, up 11% from 2024. | 166.94 USD billion handle | 2025 | ESPN |
| New York, Illinois and New Jersey remained the top US sports betting markets in 2025. | 3 top markets | 2025 | ESPN |
| US commercial gaming revenue reached a record $78.72 billion in 2025, up 9.2%, and generated $18.09 billion in gaming tax revenue. | 78.72 USD billion | 2025 | Covers via Yahoo Finance |
| State-licensed sportsbooks paid more than $3.7 billion in taxes in 2025, up 32.4% on 2024. | 3.7 USD billion | 2025 | Covers via Yahoo Finance |
| As of 10 February 2026, 39 US states, DC and Puerto Rico had some form of authorized sports betting, and 33 of those 41 jurisdictions had legalized online sports betting. | 39 US states (plus DC and Puerto Rico) | 2026 | DraftKings Inc. |
| DraftKings reported 2025 revenue of $6,054.5 million, Sportsbook handle of $53.6 billion and 4.0 million average monthly unique payers. | 6,054.5 USD million | 2025 | DraftKings Inc. |
| Flutter's US segment (FanDuel) had revenue of $6,967 million in fiscal 2025, 43% of group revenue; the company puts its online sportsbook share at about 41% in states where FanDuel was live. | 6,967 USD million | 2025 | Flutter Entertainment plc |
| The AGA says prediction markets offering sports event contracts diverted more than $500 million in potential sports betting tax revenue in the past year. | 500 USD million | 2025 | ESPN |
Sources and method
The figures on this page come from the public sources listed below. Read how we work.
- ESPN: Sports betting hits record $16.96 billion in revenue in 2025 (2026-02-26)
Quoted lines
- Figure 1
The sports betting industry hit a record revenue figure of $16.96 billion in 2025, the American Gaming Association stated Thursday.
- Figure 2
Americans legally bet $166.94 billion on sports in 2025, an 11% increase from 2024.
- Figure 3
The top sports betting markets remained New York, Illinois, and New Jersey, according to AGA data.
- Figure 9
Prediction markets that offer sports event contracts have diverted more than $500 million in potential sports betting tax revenue
- Figure 1
- Covers via Yahoo Finance: U.S. Sports Betting Revenue Soars, But Prediction Markets Play Spoilsport (2026-02-27)
Quoted lines
- Figure 4
U.S. commercial gaming industry revenue hit a record high of $78.72 billion in 2025, up 9.2% from the previous year.
- Figure 5
state-licensed bookmakers handed over more than $3.7 billion in tax money, which was up 32.4% compared to 2024.
- Figure 4
- DraftKings Inc.: Form 10-K for the fiscal year ended December 31, 2025 (2026-02-13)
Quoted lines
- Figure 6
39 U.S. states, the District of Columbia and Puerto Rico have some form of authorized sports betting.
- Figure 7
we had revenue of $6,054.5 million, $4,767.7 million and $3,665.4 million, respectively
- Figure 6
- Flutter Entertainment plc: Form 10-K for the fiscal year ended December 31, 2025 (2026-02-26)
Quoted lines
- Figure 8
constituting $6,967 million (or 43%) of our revenue for fiscal 2025.
- Figure 8
Companies to watch
DraftKings
Largest listed pure-play US operator; 2025 revenue of $6,054.5 million and Sportsbook handle of $53.6 billion.
FanDuel (Flutter Entertainment)
Flutter's US segment, which includes FanDuel, had $6,967 million of revenue in fiscal 2025.
Kalshi
Prediction market platform that says it is regulated by the CFTC, not by states (ESPN, 2026-02-26, https://www.espn.com/espn/betting/story/_/id/48045855/sports-betting-hits-record-1696-billion-revenue-2025).
What the full report covers
- 01Executive summary
The answer in one page: size, direction and what moves it - 02Market definition and scope
What is in and out of the United States market - 03Market size, 2021 to 2025
Historical series and growth rates - 04Outlook to 2031
Base, low and high scenarios with stated assumptions - 05Rules, policy and deadlines
Regulation and programmes that change demand - 06Drivers and barriers
What accelerates or slows adoption, by customer segment - 07Prices, costs and margins
Unit economics where public data allows - 08Competitive landscape
8 to 12 company profiles with recent moves - 09Opportunities and risks
For new entrants, suppliers and investors - 10Method and sources
Every assumption and source, listed
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Frequently asked questions
How big is the US sports betting market?
The American Gaming Association reports $16.96 billion of sports betting revenue in 2025 on $166.94 billion wagered, both records, as reported by ESPN.
How many states have legal sports betting?
DraftKings' 10-K says 39 US states, DC and Puerto Rico had some form of authorized sports betting as of 10 February 2026, and 33 of those 41 jurisdictions had online betting.
How much tax do states collect from sports betting?
State-licensed sportsbooks paid more than $3.7 billion in taxes in 2025, up 32.4%, according to AGA data reported by Covers.
Who are the biggest sportsbook operators?
DraftKings reported $6,054.5 million of 2025 revenue. Flutter's US segment, which includes FanDuel, reported $6,967 million, and Flutter puts its online sportsbook share at about 41% where FanDuel operates.
How are prediction markets affecting sportsbooks?
The AGA says prediction markets offering sports event contracts diverted more than $500 million in potential tax revenue in the past year. Some state regulators allege they break state law; the matter is in litigation.
Which states are the largest markets?
AGA data shows New York, Illinois and New Jersey remained the top sports betting markets in 2025.
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