Sports betting revenue reached $14.2 billion across US markets in 2024, showing a 29% increase from 2023 figures. Licensed sportsbooks processed $150 billion in total handle across 33 reporting jurisdictions. New York stands out as the leading market, recording $22.5 billion in handle while delivering over $1 billion in state tax revenue.
Online gaming now makes up 29% of total commercial gaming revenue in the US market. Super Bowl LVIII highlighted the sector’s strength, with 68 million Americans – 19.7% of the US population – placing $23.1 billion in wagers on the event. These quarterly results point to steady expansion opportunities as more states embrace legal sports betting.
US Sports Betting Market Sets New Records
Licensed sportsbooks delivered record numbers for Q4 2024. Revenue reached $14.2 billion across 33 reporting markets, marking a 29% jump from last year’s figures.
November proved the strongest month, with sportsbooks collecting $1.63 billion in revenue at a 10.7% hold rate. December maintained solid betting volume despite operator margins dropping to 5.8%.
The full year showed steady growth as bettors wagered $142.5 billion, beating 2023’s handle by 23%. State and local governments collected $2.9 billion in taxes.
Mobile Apps Lead Betting Volume
States offering mobile betting see better results than retail-only markets. Colorado shows why – mobile wagers make up 95% of all bets placed.
Mobile betting dominates through:
- New Jersey’s 91% mobile handle rate
- Tennessee’s $2.35 billion first-year mobile market
- Higher revenue compared to retail-only states
User numbers point upward, projected to hit 54.7 million by 2029. Market penetration should climb from 11.0% to 15.6%, with users spending an average of $256.60 each.
The widespread adoption of smartphones – now at 91% of Americans – powers this growth. Better apps and faster connections help drive the market forward.
FanDuel and DraftKings Lead US Sports Betting Market
FanDuel and DraftKings control 65% of nationwide sports betting handle. The two sportsbooks stand well ahead of all other operators in both revenue and market presence.
FanDuel Takes Top Spot
FanDuel leads US sports betting with $5.78 billion in revenue from $50.70 billion in wagers across 23 states. The sportsbook claims 41% revenue share through its easy-to-use platform and broad sports coverage. Beyond sports betting, FanDuel holds 43% of sports betting market share plus 26% in iGaming.
DraftKings Holds Strong Second
DraftKings processed $49.40 billion in bets across 26 markets, earning $4.67 billion in revenue. The sportsbook draws 68% of active bettors through:
- Better odds and promos
- Full live betting menu
- Deep player props
- Built-in stats tools
Other Sportsbooks Face Tough Road
The other 50 betting brands combined for just $3.78 billion in revenue on $49.30 billion in handle. Only BetMGM shows growth among smaller operators, reaching 39% user adoption.
2024 saw major exits from Betway, Sports Illustrated, and Unibet. High costs and fierce competition drove several operators from the market. Even Barstool Sports and FOX Bet closed shop despite early promise.
ESPN Bet holds under 6% market share, well below its 20% target. The market points toward continued FanDuel and DraftKings control, leaving others to target specific niches.
New Markets Drive Sports Betting Growth
Legal sports betting expands reach through successful launches in North Carolina and Kentucky. Both states show strong early numbers, adding to nationwide betting volume.
North Carolina Joins Top Markets
North Carolina bettors placed $638.6 million in wagers during November 2024, up from $589 million in October. Total handle hit $4.7 billion since March launch. Football season pushed monthly wagers above $575 million starting September.
Tax revenue tells the success story. November brought $14 million to state coffers, pushing total tax collection to $98.6 million since March. The money helps fund 13 public university athletic programs.
Kentucky Beats First-Year Targets
Kentucky sports betting shows strong numbers across all metrics:
- $2.3 billion in online handle
- $272 million adjusted gross revenue
- $37.7 million state tax revenue
- $87.1 million retail handle
DraftKings leads Kentucky with $895 million handle, while FanDuel follows at $817 million. Smart timing around football and basketball seasons helps drive these results.
Sports betting now runs legally in 38 states. Market projections point to $39 billion total value by 2030. North Carolina matches Michigan’s numbers despite similar population, showing strong local demand. Kentucky proves the point further, beating revenue forecasts with $37.2 million from taxes and fees.
Technology Powers Sports Betting Growth
New tech tools shape sports betting platforms, boosting revenue while improving security and user experience. These advances drive market expansion across all operators.
AI Creates Smart Betting Tools
AI systems study bettor behavior to offer custom recommendations based on past wagers and preferences. The technology processes live data for quick odds updates and betting insights.
Betting platforms deliver:
- Custom interfaces matching user habits
- Smart alerts for betting chances
- Targeted bonus offers
- AI security checks
These AI tools spot suspicious betting patterns, helping prevent fraud.
Blockchain Backs Secure Bets
Blockchain brings new security levels to sports betting. The system tracks all bets across multiple servers, creating permanent records that cannot change. This helps process cross-border bets faster than traditional methods.
Platforms report major gains from blockchain use. Smart contracts handle payouts automatically when bets settle, cutting errors and speeding up the process.
Mobile Apps Lead Growth
Mobile apps drive betting growth as 91% of U.S. adults own smartphones. Apps pack features from live games to deep stats.
Clean design helps users place bets quickly – key for live betting. Apps work smoothly across phones and tablets, perfect for betting anywhere.
Better payment options and security boost user numbers. These upgrades keep bettors coming back more often.
Market Shifts Show Industry Changes
Sports betting sees major changes as smaller brands struggle to stay profitable. From 74 companies starting since 2018, just 43 keep running, while 18 closed shop and 10 head toward exit.
Small Brands Leave, Leaders Grow
Smaller sportsbooks keep leaving the market. High costs and strict rules push even known names to quit. Five key exits marked 2024:
- Betway left nine states
- SI Sportsbook ended operations
- Unibet quit US market
- SuperBook stayed only in Nevada
- WynnBet dropped eight states
Money troubles drive these exits. Betfred lost $91.7 million in FY2023. BlueBet’s US exit saves $4.07 million to $5.42 million yearly.
ESPN Bet Changes Game
ESPN Bet ranks fifth among US sportsbooks, getting 9% of bettors. The list shows DraftKings (14%), FanDuel (13%), bet365 (12%), BetMGM (10%) ahead.
Young bettors pick ESPN Bet – 43% of users fall between 21-29 years. Soccer bets show this difference: 49% of ESPN Bet users bet soccer versus 29% at DraftKings and 32% at FanDuel.
ESPN fans rate ESPN Bet highly at 13%, close to DraftKings (15%) and FanDuel (14%).
Market experts see more exits coming from high costs and strict rules. Sharp bettors face limits or bans at remaining books. These changes affect both market choices and new ideas going forward.
Looking Ahead: Sports Betting Growth Continues
US sports betting shows strong market health through 2024. The $14.2 billion revenue mark plus FanDuel and DraftKings holding 65% market share points to a mature industry. North Carolina and Kentucky prove new markets can still succeed despite tough competition for smaller operators.
Tech advances power market growth. AI tools and blockchain security help sportsbooks serve users better. Mobile apps handle 95% of bets, showing clear user choice for easy betting access. New tech paired with smart market growth sets up long-term success.
Big names lead the way forward as smaller brands exit and ESPN Bet joins top ranks. The future belongs to operators who mix smart tech use with solid business sense while meeting strict rules. Sports betting heads toward a cleaner market focused on user needs and safety.
FAQs
Q1. What was the total revenue for US sports betting in Q4 2024?
US sports betting revenue reached a record-breaking $14.2 billion in the fourth quarter of 2024, marking a 29% increase from the previous year.
Q2. Which companies dominate the US sports betting market?
FanDuel and DraftKings are the dominant players, controlling over 65% of the nationwide market share. FanDuel leads with approximately 40% market share, while DraftKings maintains a strong second position.
Q3. How has mobile betting impacted the sports betting industry?
Mobile betting has become the primary driver of growth, accounting for 95% of the total betting handle in some states. The convenience and accessibility of mobile platforms have significantly increased market penetration and user engagement.
Q4. What technological advancements are shaping the sports betting landscape?
Key technological innovations include AI-powered personalized betting experiences, blockchain technology for enhanced transaction security, and advanced mobile applications that offer comprehensive features like live streaming and real-time statistics.
Q5. How is market consolidation affecting the sports betting industry?
Market consolidation is reshaping the industry, with many smaller operators exiting due to high operational costs and fierce competition. This trend is leading to a more streamlined market dominated by established players, potentially impacting innovation and consumer choice in the long term.
