U.S. Sports Betting Reaches Unprecedented Scale as 2025 Handle Climbs to $166.94 Billion
Olivia Schmidt · Jul 28, 2026
U.S. Sports Betting Reaches Unprecedented Scale as 2025 Handle Climbs to $166.94 Billion
Data compiled for the full 2025 calendar year shows Americans placed a record $166.94 billion in legal sports wagers, an 11.0 percent increase over the prior year, while sportsbooks retained $16.96 billion in gross gaming revenue, a 22.8 percent jump, and states collected $3.71 billion in taxes, up 32.4 percent. The figures come from a comprehensive aggregation of regulatory filings across all active markets and highlight how online platforms drove nearly all activity, accounting for roughly 95 percent of total handle.
Market Concentration and Hold Rates
FanDuel and DraftKings together captured approximately 75 percent of the online gross gaming revenue generated last year, a level of dominance that reflects both brand strength and the scale of their promotional investments. The national hold rate climbed to 10.2 percent, meaning sportsbooks kept a larger share of every dollar wagered compared with earlier periods when competition kept margins tighter. Observers note that this combination of volume growth and improved retention produced the outsized revenue gains even as some states continued to add new operators.
Key Growth Drivers Behind the Numbers
Parlays and in-play betting emerged as the primary engines behind the expansion, with data indicating that multi-leg wagers and live-betting interfaces attracted higher handle per user than traditional pre-game single bets. Those who track player behavior report that in-play options now represent a substantial and growing portion of total volume in mature markets, while parlays deliver elevated hold percentages for operators because of their built-in vig. The report breaks these trends down by product type and shows how states that legalized in-play earlier tended to post stronger year-over-year gains.
State-by-State Performance and Pending Markets
Traditional powerhouses such as New Jersey, Pennsylvania, and New York continued to lead in absolute dollars, yet several newer markets posted double-digit percentage increases that outpaced the national average. The compilation includes detailed tables showing handle, revenue, and tax collections for every state with legal sports betting as of December 2025, along with notes on regulatory changes that took effect during the year. Several additional states had legislation pending or in active discussion by mid-2026, and analysts tracking those developments point to the 2025 results as evidence that new markets can reach meaningful scale within two to three years of launch.
Tax Revenue Implications for State Budgets
The $3.71 billion in state taxes represented a sharp acceleration from previous years, driven both by higher handle and by rate adjustments in several jurisdictions. Revenue officials in states that rely on these collections for education or public-safety funding have incorporated the stronger 2025 numbers into their budgeting models for the current fiscal year. The report notes that tax growth outstripped handle growth because more wagers flowed through online channels that often carry higher effective tax rates than retail sportsbooks in certain states.
Context Within Broader Commercial Gaming Trends
These sports-betting results sit alongside data from the American Gaming Association's Commercial Gaming Revenue Tracker, which tracks total commercial gaming activity nationwide. When viewed together, the numbers illustrate how sports betting has become an increasingly important component of overall gaming revenue in states that permit it, while still remaining smaller than casino gaming in most markets. The 2025 figures also show continued geographic expansion, with additional tribal and retail locations contributing modest but measurable handle in states where online betting remains restricted.
Looking Ahead from July 2026
As of July 2026, regulators in several states continue to evaluate rule changes that could affect operator margins and player options, including adjustments to advertising standards and potential new fees. The 2025 data set provides a baseline against which future performance will be measured, particularly in markets that opened during or after 2024. Those who follow the industry expect the same combination of product innovation and state-level policy decisions to shape results through the remainder of 2026 and beyond.
Conclusion
The 2025 numbers establish a new benchmark for legal sports betting in the United States, with handle, revenue, and tax collections all reaching record levels. Online platforms, led by the two largest operators, accounted for the overwhelming majority of activity, while parlays and in-play betting supplied much of the growth momentum. State-by-state breakdowns reveal both established leaders and emerging markets that contributed to the national totals, and the tax figures underscore the fiscal significance of the sector for governments across the country. The full compilation offers a detailed snapshot that will serve as a reference point for industry participants and policymakers monitoring the continued evolution of legalized sports wagering.