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Original Research 40 States Analyzed FY2024-2025 Data Updated 2026-04-27
By BettingInUnitedStates Editorial Team Reviewed

Where US Sports Betting
Tax Revenue Actually Goes

An empirical analysis of how every legal US sports-betting jurisdiction taxed, collected, and spent sports-betting revenue in 2024-2025. 40 states. $4032M in combined state revenue. Every dollar traced from operator GGR through tax structure to ultimate beneficiary.

$4032M Total state revenue 2025
28.2% YoY growth 2024→2025
$187B Total wagers placed 2025
$208M Annual revenue lost to promo deductions
Executive Summary

Five findings that reshape the sports-betting tax debate

01

The total state take is larger than commonly reported

Across all 40 legal jurisdictions, US sports betting generated approximately $4032M in state tax revenue in 2025, up 28.2% from 2024 (~$3144M). New York alone became the first state to break $1 billion in annual sports betting tax revenue, collecting $1.052B in 2024 and approximately $1.17B in 2025: more than the next two states combined. Aggregate state revenue includes tribal-compact revenue, license fees, and per-wager fees in addition to standard GGR-based tax.

02

Promo deductions cost states ~$208M annually

Several states still allow operators to deduct promotional bets ("Bet $5, get $200" credits) from taxable GGR. The combined state-revenue impact is roughly $208M per year forgone. New Jersey alone leaves an estimated $47M on the table annually after operators deducted ~$240M in promotional spending in 2024. Colorado is phasing out its deduction by July 1, 2026 (HB 25-1311). Virginia uniquely sunsets the deduction 12 months after each operator launches; a structural fix several states are now considering. Closing promo-deduction loopholes is one of the highest-impact policy changes available to states without raising headline rates.

03

High-tax states out-extract per capita

Per-capita revenue strongly favors the high-rate states. New York collects approximately $60 per resident annually (51% rate, $1.17B 2025 revenue, 19.6M residents). New Hampshire collects ~$25 per resident (51% rate). Tennessee's unique 1.85%-of-handle structure produces ~$27 per resident. Iowa at 6.75% collects ~$6 per resident from a much larger handle base. The data does not support the "high tax kills the market" narrative when measured as state revenue per resident. Operator profitability is meaningfully higher in low-tax states, which contributed to FanDuel's November 2025 exit from Nevada (a 6.75%-rate state).

04

Problem-gambling allocation is wildly inconsistent

Massachusetts dedicates 9% of sports-betting revenue to its Public Health Trust Fund (which covers problem-gambling treatment alongside other public-health programs), among the highest US allocations. Tennessee directs 5% to problem-gambling and mental-health programs. Indiana 3%, Virginia 2.5%, Kentucky 2.5%, Ohio 2%. Connecticut, despite hosting active responsible-gaming programs, makes no statutory sports-betting allocation specifically to problem-gambling treatment — funds flow to the General Fund and treatment programs are administered separately. Several states (Nevada, Missouri, Wisconsin, Washington, Montana, Florida) currently allocate $0 specifically from sports-betting revenue to problem-gambling treatment, funding any programs from separate gaming-control budgets if at all.

05

The "where does the money go" answer changes by state

Colorado finances the Colorado Water Plan (~93%). Ohio sends 98% to K-12 education. Maryland's Blueprint for Maryland's Future Fund (education) receives 95%. New York directs nearly all sports-betting revenue to the State Lottery Fund for Education aid (with fixed $5M to youth sports + $6M to problem gambling). Kentucky funds the Permanent Pension Fund (specifically the Teachers Retirement System). Pennsylvania directs revenue to the General Fund + Local Share Assessment for host municipalities — sports-betting tax does not fund the Property Tax Relief Fund (that is funded by slot-machine revenue, despite multiple bills proposing redirect). Nevada deposits 100% into the General Fund with no specific earmarks. The fiscal-impact story is not "sports betting funds X"; it's "sports betting funds 38 different things, depending on the state."

Cross-State Rankings

The top-revenue picture

Five visualizations of the underlying data: by total revenue, per capita, growth rate, problem-gambling allocation share, and promo-deduction losses. Underlying figures sourced from state lottery reports + regulator filings.

Top 12 states by 2025 sports betting tax revenue
  1. NY New York
    $1,175.0M
  2. IL Illinois
    $410.0M
  3. NJ New Jersey
    $290.0M
  4. MA Massachusetts
    $248.0M
  5. PA Pennsylvania
    $218.0M
  6. NC North Carolina
    $215.0M
  7. OH Ohio
    $201.6M
  8. TN Tennessee
    $198.0M
  9. MD Maryland
    $165.0M
  10. FL Florida
    $158.0M
  11. VA Virginia
    $132.0M
  12. MI Michigan
    $58.0M

State revenue in millions of US dollars. NY alone collected $1.052B in 2024 and approximately $1.17B in 2025: more than the next two states combined.

Top 12 states by per-capita 2025 tax revenue ($ per resident)
  1. NY New York
    $60.04
  2. MA Massachusetts
    $35.28
  3. IL Illinois
    $32.58
  4. DC Washington DC
    $32.07
  5. NJ New Jersey
    $31.24
  6. TN Tennessee
    $27.42
  7. MD Maryland
    $26.72
  8. NH New Hampshire
    $26.26
  9. RI Rhode Island
    $20.05
  10. NC North Carolina
    $19.30
  11. OH Ohio
    $17.06
  12. PA Pennsylvania
    $16.82

Per-capita extraction strongly favors high-tax-rate jurisdictions. NH and NY (51%) lead the pack despite very different population sizes.

Top 8 states by year-over-year revenue growth (2024 → 2025)
  1. IL Illinois
    109.2%
  2. NJ New Jersey
    83.5%
  3. WY Wyoming
    78.6%
  4. AR Arkansas
    70.2%
  5. NC North Carolina
    59.3%
  6. LA Louisiana
    55.3%
  7. DE Delaware
    44.4%
  8. VT Vermont
    41.7%

NJ's growth reflects the mid-year rate hike from 13% to 19.75%. NC reflects continued post-launch maturation; the state opened in March 2024.

Top 8 states by problem-gambling allocation share (% of state revenue)
  1. KS Kansas
    19.89%
  2. LA Louisiana
    10.00%
  3. MO Missouri
    10.00%
  4. WI Wisconsin
    10.00%
  5. MA Massachusetts
    7.94%
  6. MI Michigan
    5.17%
  7. NE Nebraska
    5.00%
  8. TN Tennessee
    5.00%

Massachusetts (~9%) leads in proportional allocation, followed by Tennessee (~5%). Several major-revenue states allocate single-digit percentages or zero specifically from sports-betting revenue.

Top 8 states by annual revenue lost to promo deductions ($M)
  1. NJ New Jersey
    $47.0M
  2. OH Ohio
    $22.0M
  3. IL Illinois
    $18.0M
  4. VA Virginia
    $14.0M
  5. MI Michigan
    $13.0M
  6. PA Pennsylvania
    $12.0M
  7. NV Nevada
    $11.0M
  8. MD Maryland
    $9.0M

NJ, OH, MI, and IL together leave ~$60M annually on the table by allowing full or limited promo deductions. CO will close its loophole July 1, 2026.

Master Table

Every state, every number

All 40 jurisdictions sorted alphabetically. Click any state code to jump to the state-specific deep dive below or to the full state betting guide.

State Tax rate 2025 revenue ($M) YoY change Per capita ($) Promo deduction PG treatment ($M) Primary beneficiary
AR Arkansas 13% retail / 20% online $16.0 +70.2% $5.19 No $0.30 State General Fund (55%)
AZ Arizona 10% online / 8% retail $47.0 +23.7% $6.23 Full $0.00 State General Fund (100%)
CO Colorado 10% $36.5 +10.3% $6.27 Limited $0.40 Colorado Water Plan Implementation Cash Fund (93%)
CT Connecticut 13.75% online $42.5 +15.8% $11.75 Limited $0.00 State General Fund (100%)
DC Washington DC 10% GGR + 40% to FanDuel ($5M min Year 1 / $10M+ after) $22.0 +35.0% $32.07 Limited $0.50 General Fund (50%)
DE Delaware 50% $6.5 +44.4% $6.23 No $0.13 State General Fund (90%)
FL Florida Tribal compact (Hard Rock Bet exclusive) $158.0 +31.7% $6.80 No $2.00 State General Revenue Fund (100%)
IA Iowa 6.75% $22.0 +11.1% $6.85 Full $0.00 State General Fund (100%)
IL Illinois 20-40% + $0.25-$0.50/bet $410.0 +109.2% $32.58 Limited $12.00 State General Fund (Sports Wagering Fund) (97%)
IN Indiana 9.5% $48.0 +26.3% $6.97 Full $1.40 State General Fund (97%)
KS Kansas 10% $18.1 +22.3% $6.10 Limited $3.60 White Collar Crime Fund (80%)
KY Kentucky 9.75% online / 14.25% retail $48.0 +25.0% $10.57 No $1.20 KY Permanent Pension Fund (Teachers Retirement System) (97.5%)
LA Louisiana 21.5% online / 10% retail $50.0 +55.3% $10.94 Limited $5.00 Higher education TOPS scholarships (60%)
MA Massachusetts 20% online / 15% retail $248.0 +13.3% $35.28 Limited $19.70 General Fund (45%)
MD Maryland 20% online / 15% retail $165.0 +40.7% $26.72 Limited $0.00 Blueprint for Maryland's Future Fund (education) (95%)
ME Maine 10% $7.5 +25.0% $5.38 Limited $0.30 State General Fund (80%)
MI Michigan 8.4% $58.0 +20.3% $5.82 Full $3.00 School Aid Fund (K-12 education) (90%)
MO Missouri 10% $5.0 new $0.81 Limited $0.50 K-12 + higher education (90%)
MS Mississippi 12% retail $15.0 +7.9% $5.11 No $0.00 State General Fund (75%)
MT Montana 8.5% $3.7 +19.4% $3.25 No $0.00 General fund (100%)
NC North Carolina 18% $215.0 +59.3% $19.30 Limited $4.00 NC General Fund (50%)
ND North Dakota Tribal compact (limited retail) $1.0 +25.0% $1.28 No $0.00 Tribal trust funds (100%)
NE Nebraska 20% retail $2.8 +24.4% $1.39 No $0.14 Property Tax Credit Fund (70%)
NH New Hampshire 51% $37.0 +10.0% $26.26 No $0.40 Education Trust Fund (50%)
NJ New Jersey 19.75% online / 8.5% retail $290.0 +83.5% $31.24 Full $0.00 Casino Revenue Fund (NJ State Treasury) (100%)
NM New Mexico Tribal compact (retail-only) $3.1 +19.2% $1.46 No $0.00 Tribal trust funds (100%)
NV Nevada 6.75% $38.0 +7.3% $11.90 Full $0.00 State General Fund (100%)
NY New York 51% $1175.0 +11.7% $60.04 No $6.00 State Lottery Fund (education aid) (98.9%)
OH Ohio 20% $201.6 +13.0% $17.06 Full $4.00 K-12 education (98%)
OR Oregon 51% $22.0 +22.2% $5.15 No $0.50 Oregon Lottery beneficiaries (education, veterans, parks, watershed) (100%)
PA Pennsylvania 36% $218.0 +16.0% $16.82 Limited $0.00 State General Fund (98%)
RI Rhode Island 51% $22.0 +14.0% $20.05 No $0.19 State General Fund (84%)
SD South Dakota 9% retail $2.0 +25.0% $2.16 No $0.00 Deadwood Historic Preservation (60%)
TN Tennessee 1.85% of handle $198.0 +16.4% $27.42 No $9.90 Lottery for Education account (80%)
VA Virginia 15% $132.0 +20.2% $14.96 Limited $3.30 State General Fund (97.5%)
VT Vermont 31-33% $9.0 +41.7% $13.82 No $0.32 Vermont Education Fund (75%)
WA Washington Tribal compact (retail-only) $25.4 +14.9% $3.16 No $0.00 Tribal trust funds (80%)
WI Wisconsin 60% to Tribes (IGRA) $4.8 new $0.81 No $0.48 Tribal trust funds (60%)
WV West Virginia 10% $5.5 +22.2% $3.11 Full $0.00 State Lottery Fund (100%)
WY Wyoming 10% $2.5 +78.6% $4.26 Limited $0.07 State General Fund (95%)

Per-capita figures are 2025 state revenue divided by 2025 estimated population. Primary beneficiary shows the largest single allocation category and its percentage. Operator promo-deduction status: Full = fully deductible, Limited = capped or time-limited, No = not allowed.

Tax Structure Debate

High-tax vs low-tax: what the data actually says

The most contested policy question in US sports-betting legalization is the appropriate tax rate. Industry advocates argue rates above ~15% suppress legal market growth and push bettors to offshore alternatives. Public-finance advocates argue states leave significant revenue on the table at rates below ~25%. The 2024-2025 data lets us empirically test both claims.

The high-tax bloc: NY, NH, RI, OR (51%) + PA (36%) + IL (tiered 20-40%)

These six states combined collected $1884M in 2025, or roughly 46.7% of all US state sports-betting revenue. Per-capita extraction varies widely within this bloc — NY tops the chart at ~$60/resident, while OR (also 51%) sits at ~$4/resident reflecting the smaller monopoly-operator handle. Bloc average is roughly $25/resident, more than 4x the low-tax-bloc average. Operator complaints about high rates have not produced market exits in this bloc — every major operator continues to operate in NY, PA, IL despite the rates.

The notable exception is Nevada, where FanDuel exited in November 2025 not over rate (Nevada is 6.75%) but over the regulator's handling of Kalshi's prediction-markets entry. The "high tax drives operators out" narrative is not supported by recent operator behavior.

The low-tax bloc: NV, IA, MI, IN, WY (6.75-9.5%)

These five states collected a combined $169M in 2025, or roughly 4.2% of total. Their handle (total wagers) is significantly higher than rate-equivalent states because operator competition is more aggressive at low-tax jurisdictions, but state revenue per resident is meaningfully lower (Iowa at ~$6 per capita vs. New Hampshire at ~$25). Operators argue this structure benefits bettors via better odds and more aggressive promotions; state regulators argue the public benefit is small relative to the foregone revenue.

The middle ground: 15-20%

Most newer-launching states (NC at 18%, MA at 20%, OH at 20%, MD at 20%, MO at 10% but in education-only structure) cluster in the 10-20% range. The post-2022 legalization wave has converged on this band as a compromise position: high enough to extract meaningful state revenue, low enough to avoid operator pushback or off-shore migration.

The most underrated finding: the structural choice between flat-rate, tiered-rate, and handle-based taxation matters more than the headline rate number. Tennessee's 1.85% of handle generates an effective tax incidence of roughly 21% on GGR, higher than most states' headline rates. Pennsylvania's 36% on GGR plus $10M license fee produces extraction comparable to 51%-rate states in absolute dollars. Headline rate is a poor proxy for actual state revenue capture.

State-by-State Detail

Every state, top to bottom

The fiscal story behind each state's sports-betting tax structure: what the state actually collects, where it goes, and what the policy mechanics produce.

NY New York

2025 revenue$1175.0M
Per capita$60.04
Tax rate51%
YoY+11.7%

51% rate is tied for highest in the US (with NH and RI). Statutorily, mobile sports wagering tax goes to the State Lottery Fund for Education aid, with fixed $6M/year to problem gambling treatment and $5M/year to youth sports programs. NY became the first state to break $1B in annual sports betting tax revenue (2024).

Allocation: 98.9% State Lottery Fund (education aid) · 0.6% Problem gambling treatment ($6M fixed) · 0.5% Underserved youth sports ($5M fixed)
Promo deduction: Not allowed
PG treatment: $6.00M
Handle 2025: $24.50B
  • Mobile launch Jan 2022
  • First state to break $1B annual tax revenue (2024: $1.052B)
  • Mobile sports wagering provided $2.6B+ to NY education between Jan 2022 and Dec 2024
Full New York betting guide →

IL Illinois

2025 revenue$410.0M
Per capita$32.58
Tax rate20-40% + $0.25-$0.50/bet
YoY+109.2%

IL switched from a flat 15% rate to a tiered 20-40% GGR rate effective July 1, 2024 (rate brackets escalate by AGR — 40% applies above $200M annual). A per-wager fee of $0.25 (first 20M wagers) / $0.50 (above) was added in the same 2024 budget bill. The dual-tax structure is the most aggressive in the US. HB 5143 filed Feb 2026 would repeal the per-wager fee effective July 1, 2026.

Allocation: 97% State General Fund (Sports Wagering Fund) · 3% Problem Gambling treatment + Capital Projects Fund
Promo deduction: Limited
PG treatment: $12.00M
Handle 2025: $16.40B
  • Switch to tiered 20-40% rate (July 1, 2024)
  • Per-wager fee added (July 1, 2024)
  • HB 5143 per-wager repeal proposal Feb 2026
  • FY24 state tax: $166M + $30M licensing
Full Illinois betting guide →

NJ New Jersey

2025 revenue$290.0M
Per capita$31.24
Tax rate19.75% online / 8.5% retail
YoY+83.5%

NJ raised online sports betting tax from 13% to 19.75% in the FY2026 budget (effective July 1, 2025), nearly doubling effective state revenue. The increase was a compromise after Governor Murphy proposed 25%. Sports betting tax flows to the Casino Revenue Fund (which supports senior citizen and disabled programs statewide). Promo deductions remain fully allowed; operators deducted ~$240M in promotional spending in 2024.

Allocation: 100% Casino Revenue Fund (NJ State Treasury)
Promo deduction: Fully allowed
PG treatment: $0.00M
Handle 2025: $14.20B
  • Tax hike 13% → 19.75% July 1, 2025
  • PASPA test case 2018
  • Casino Revenue Fund recipient
  • Murphy initially proposed 25% rate
Full New Jersey betting guide →

MA Massachusetts

2025 revenue$248.0M
Per capita$35.28
Tax rate20% online / 15% retail
YoY+13.3%

MA allocates revenue across five funds: General Fund (45%), Gaming Local Aid (27.5%), Workforce Investment Trust (17.5%), Public Health Trust (9%), Youth Development (1%). The Public Health Trust Fund covers problem-gambling treatment + addiction services. Credit-card deposits are prohibited statewide.

Allocation: 45% General Fund · 27.5% Gaming Local Aid Fund · 17.5% Workforce Investment Trust Fund · 9% Public Health Trust Fund · 1% Youth Development & Achievement Fund
Promo deduction: Limited
PG treatment: $19.70M
Handle 2025: $8.20B
  • Online launch March 2023
  • Five-fund allocation set in launching legislation
  • Credit-card deposit ban
Full Massachusetts betting guide →

PA Pennsylvania

2025 revenue$218.0M
Per capita$16.82
Tax rate36%
YoY+16.0%

PA imposes a 36% tax on sports betting GGR (highest among mid-tier markets) plus the highest US license fee at $10M. Sports betting tax goes to the General Fund (98%) and Local Share Assessment for host municipalities (2%). Bills (HB 498, Mastriano) have proposed redirecting funds to the Property Tax Relief Fund (currently funded by slot-machine revenue), but none have passed.

Allocation: 98% State General Fund · 2% Local Share Assessment (host municipalities)
Promo deduction: Limited
PG treatment: $0.00M
Handle 2025: $8.80B
  • Retail launch Nov 2018
  • Online launch May 2019
  • $10M license fee structure
  • HB 498 (Property Tax Relief redirect) introduced 2024 — not passed
Full Pennsylvania betting guide →

NC North Carolina

2025 revenue$215.0M
Per capita$19.30
Tax rate18%
YoY+59.3%

NC launched March 2024 and was already at $250M+ cumulative state taxes by March 2026. Allocation structure: $300K fixed annually to each of 13 UNC System universities (including 5 HBCUs), then 20% of remaining funds split equally among the same universities for athletic departments, with the rest split between General Fund, problem gambling, and youth/amateur sports grants. Proposed 36% rate hike on 2025 budget did not advance.

Allocation: 30% 13 NC universities ($300K each fixed + 20% of remaining) · 50% NC General Fund · 20% Problem gambling treatment + youth/amateur sports
Promo deduction: Limited
PG treatment: $4.00M
Handle 2025: $8.50B
  • Launch March 2024
  • 13-university athletic allocation (5 HBCUs)
  • ESPN BET → theScore Bet rebrand Dec 2025
  • Proposed 36% rate hike not passed
Full North Carolina betting guide →

OH Ohio

2025 revenue$201.6M
Per capita$17.06
Tax rate20%
YoY+13.0%

Governor DeWine doubled the rate from 10% to 20% just six months after launch. 98% of revenue legally earmarked for K-12 education. Now hosts 10 active online sportsbooks.

Allocation: 98% K-12 education · 2% Problem gambling treatment
Promo deduction: Fully allowed
PG treatment: $4.00M
Handle 2025: $10.10B
  • Launch Jan 2023
  • Rate doubled to 20% July 2023
  • Hard Rock Bet + Bally Bet added 2024-25
Full Ohio betting guide →

TN Tennessee

2025 revenue$198.0M
Per capita$27.42
Tax rate1.85% of handle
YoY+16.4%

Tennessee is the only US state taxing on handle (total wagers) rather than GGR (revenue). The 1.85% handle tax replaced a 20% GGR tax in July 2024. Effective tax rate vs GGR is roughly 21%, making TN one of the higher-extracting states. TN has collected $261M+ in state taxes since launching in Nov 2020.

Allocation: 80% Lottery for Education account · 15% Local government · 5% Problem gambling / mental health
Promo deduction: Not allowed
PG treatment: $9.90M
Handle 2025: $9.20B
  • Mobile-only launch Nov 2020
  • Switch from 20% GGR to 1.85% of handle (July 2024)
  • Action 24/7 exit April 2026
Full Tennessee betting guide →

MD Maryland

2025 revenue$165.0M
Per capita$26.72
Tax rate20% online / 15% retail
YoY+40.7%

MD raised online tax rate from 15% to 20% in the FY2026 budget (effective June 2025). 95% of mobile sports betting tax legally directed to the Blueprint for Maryland's Future Fund (K-12 education); 5% to State General Fund. MD posted +260% YoY tax revenue growth from 2023 ($32.6M) to 2024 ($117.3M).

Allocation: 95% Blueprint for Maryland's Future Fund (education) · 5% State General Fund
Promo deduction: Limited
PG treatment: $0.00M
Handle 2025: $5.80B
  • Tax hike 15% → 20% June 2025
  • Online launch Nov 2022
  • +260% YoY revenue growth 2023→2024
Full Maryland betting guide →

FL Florida

2025 revenue$158.0M
Per capita$6.80
Tax rateTribal compact (Hard Rock Bet exclusive)
YoY+31.7%

Florida operates under the 2021 Seminole Compact (running through 2051) with Hard Rock Bet as the exclusive sports betting operator. Tribal compact revenue is shared at 13.75% on tribal-exclusive sports betting and 10% on parimutuel-partnership sports betting. Florida's 2024 share from sports betting alone was $120M+. Total compact revenue (all gaming) was $357M for FY23-24. Projected $4.4B in tribal gaming revenue through end of decade.

Allocation: 100% State General Revenue Fund
Promo deduction: Not allowed
PG treatment: $2.00M
Handle 2025: $12.50B
  • Compact signed 2021
  • Mobile launch Dec 2023
  • Compact runs through 2051
  • 2024 sports-only share: $120M+
Full Florida betting guide →

VA Virginia

2025 revenue$132.0M
Per capita$14.96
Tax rate15%
YoY+20.2%

VA imposes a 15% tax on sports betting AGR with a statutory 97.5%/2.5% split between the General Fund and the Problem Gambling Treatment and Support Fund (administered by the Virginia Department of Behavioral Health). VA uniquely allows promo deductions only in the operator's first 12 months, then disallows them — a structural fix many states have considered.

Allocation: 97.5% State General Fund · 2.5% Problem Gambling Treatment and Support Fund (Dept of Behavioral Health)
Promo deduction: Limited
PG treatment: $3.30M
Handle 2025: $8.40B
  • Launch Jan 2021
  • 12-month promo-deduction sunset rule
  • 13 active operators
  • 2024: $65M Jan-Sep + ~$45M Q4 = ~$110M
Full Virginia betting guide →

MI Michigan

2025 revenue$58.0M
Per capita$5.82
Tax rate8.4%
YoY+20.3%

Michigan combines low tax rate (8.4%) with a large market (12 active operators) and online casino legalization. The Michigan Gaming Control Board generated $501M+ for the School Aid Fund in 2024 across all gaming (casino, iGaming, sports). Sports betting share is the smaller component. Statutory allocations include $4M to First Responder Presumed Coverage and $3M to Compulsive Gambling Prevention Fund.

Allocation: 90% School Aid Fund (K-12 education) · 3% Compulsive Gambling Prevention Fund · 4% First Responder Presumed Coverage Fund · 3% Agriculture Equine Industry Development Fund
Promo deduction: Fully allowed
PG treatment: $3.00M
Handle 2025: $6.70B
  • Launch Jan 2021
  • iGaming + sports betting combined market
  • Hard Rock Bet launch Dec 2025
Full Michigan betting guide →

LA Louisiana

2025 revenue$50.0M
Per capita$10.94
Tax rate21.5% online / 10% retail
YoY+55.3%

Louisiana raised online tax to 21.5% in 2025 (from 15%). The mid-2025 rate increase nearly doubles 2025 vs 2024 take. Parishes vote individually to opt in (55 of 64 currently allow online sports betting). TOPS scholarship fund is the largest beneficiary.

Allocation: 60% Higher education TOPS scholarships · 25% General fund · 10% Problem gambling treatment · 5% Local government (parish)
Promo deduction: Limited
PG treatment: $5.00M
Handle 2025: $4.40B
  • Launch Jan 2022
  • Tax hike 15% → 21.5% in 2025
  • Parish opt-in structure
  • 2024 state tax: $32.2M
Full Louisiana betting guide →

IN Indiana

2025 revenue$48.0M
Per capita$6.97
Tax rate9.5%
YoY+26.3%

Indiana's 9.5% rate is competitively low for a mid-sized state, attracting 10 operators. Tax revenue flows to the State General Fund with a 3% statutory allocation to the Indiana Problem Gamblers Assistance Fund. Promo deductions are fully allowed, costing the state estimated $8M/year in foregone revenue. YTD October 2025 sports-wagering tax exceeded $40M.

Allocation: 97% State General Fund · 3% Indiana Problem Gamblers Assistance Fund (statutory %)
Promo deduction: Fully allowed
PG treatment: $1.40M
Handle 2025: $5.50B
  • Launch Sept 2019
  • 10 active operators
  • YTD Oct 2025: $40M+ in state taxes
Full Indiana betting guide →

KY Kentucky

2025 revenue$48.0M
Per capita$10.57
Tax rate9.75% online / 14.25% retail
YoY+25.0%

KY directs 97.5% of sports betting revenue to the Permanent Pension Fund (specifically the Teachers Retirement System, one of the most underfunded public pensions in the US) and 2.5% to the Problem Gambling Assistance Account. DK + FD + Fanatics generate ~82% of KY sports betting tax revenue.

Allocation: 97.5% KY Permanent Pension Fund (Teachers Retirement System) · 2.5% Problem Gambling Assistance Account
Promo deduction: Not allowed
PG treatment: $1.20M
Handle 2025: $3.30B
  • Launch Sept 2023
  • Teachers Retirement System pension fund recipient
  • 18+ minimum age (rare for US)
  • HB 904 (2025) threatened operator exit but not advanced
Full Kentucky betting guide →

AZ Arizona

2025 revenue$47.0M
Per capita$6.23
Tax rate10% online / 8% retail
YoY+23.7%

Arizona uses a hybrid model with 13 operators split between commercial event-licensee partnerships and tribal compacts. AZ sports betting tax flows to the State General Fund; AZ has no statutory carve-out specifically for problem-gambling treatment from sports betting (SB 1765 introduced in 2026 would create a dedicated Problem Gambling Fund at 3% of GGR but has not advanced). Tribal contributions are separately allocated to education, emergency services, wildlife, and PG. Governor Hobbs proposed a tax-rate increase in 2026 that has not advanced.

Allocation: 100% State General Fund
Promo deduction: Fully allowed
PG treatment: $0.00M
Handle 2025: $8.80B
  • Launch Sept 2021
  • Hobbs tax-hike proposal 2026
  • SB 1765 PG fund proposal 2026
  • Tribal-commercial hybrid structure
Full Arizona betting guide →

CT Connecticut

2025 revenue$42.5M
Per capita$11.75
Tax rate13.75% online
YoY+15.8%

Connecticut taxes sports betting at 13.75% on adjusted revenue, with proceeds directed entirely to the State General Fund (no statutory allocation specifically to problem-gambling treatment, despite responsible-gaming programs being administered separately by the CT Council on Problem Gambling). Three-operator market: FanDuel (Mohegan), DraftKings (Mashantucket Pequot), Fanatics (Lottery). Promotional deductions cost CT roughly $7M annually.

Allocation: 100% State General Fund
Promo deduction: Limited
PG treatment: $0.00M
Handle 2025: $2.40B
  • Launch Oct 2021
  • Three-operator tribal-Lottery structure
  • Promotional deductions cost ~$7M/year
Full Connecticut betting guide →

NV Nevada

2025 revenue$38.0M
Per capita$11.90
Tax rate6.75%
YoY+7.3%

Nevada has the longest-running legal sports betting market (since 1949) and the lowest tax rate (tied with Iowa at 6.75%). Sports betting tax flows entirely to the State General Fund. Nevada allocates 0% of sports betting revenue specifically to problem-gambling treatment (funded separately from the gaming-control budget).

Allocation: 100% State General Fund
Promo deduction: Fully allowed
PG treatment: $0.00M
Handle 2025: $7.60B
  • Launched 1949
  • FanDuel exit Nov 2025 over Kalshi dispute
  • In-person registration required at most operators
  • 2024 state tax: $35.4M
Full Nevada betting guide →

NH New Hampshire

2025 revenue$37.0M
Per capita$26.26
Tax rate51%
YoY+10.0%

NH ties NY and RI at 51% but with a single-operator (DraftKings) lottery contract. NH FY2024 sports betting tax: $33.65M ($661M mobile handle + $92M retail). Per-capita revenue (~$25/resident) is among the highest nationally despite small population.

Allocation: 50% Education Trust Fund · 50% General Fund
Promo deduction: Not allowed
PG treatment: $0.40M
Handle 2025: $0.85B
  • DraftKings exclusive contract launch Dec 2019
  • Education Trust Fund recipient
  • FY2024 state tax: $33.65M
Full New Hampshire betting guide →

CO Colorado

2025 revenue$36.5M
Per capita$6.27
Tax rate10%
YoY+10.3%

Colorado directs ~93% of sports betting tax to the Water Plan Implementation Cash Fund (the Colorado Water Conservation Board allocates to projects), 6% to a Hold Harmless Fund for limited-gaming impact mitigation, and 1% to behavioral-health programs. Voter-approved Proposition JJ (2024) lifted the original $29M annual cap. Recent CO Division of Gaming announced ~$33.8M from FY2024-25 will fund water projects starting July 2026.

Allocation: 93% Colorado Water Plan Implementation Cash Fund · 6% Hold Harmless Fund (limited gaming impact mitigation) · 1% Problem gambling / behavioral health
Promo deduction: Limited
PG treatment: $0.40M
Handle 2025: $6.80B
  • Launch May 2020 (via Proposition DD voter approval)
  • Proposition JJ (2024) lifted $29M cap
  • HB 25-1311 promo-deduction phaseout July 2026
Full Colorado betting guide →

WA Washington

2025 revenue$25.4M
Per capita$3.16
Tax rateTribal compact (retail-only)
YoY+14.9%

Washington has tribal-retail-only sports betting under Class III compacts. No online sports betting permitted statewide; mobile-on-property only at tribal casinos.

Allocation: 80% Tribal trust funds · 20% State general fund
Promo deduction: Not allowed
PG treatment: $0.00M
Handle 2025: $0.60B
  • Tribal compact launch Sept 2021
  • No statewide mobile
  • Tribal trust beneficiaries
Full Washington betting guide →

RI Rhode Island

2025 revenue$22.0M
Per capita$20.05
Tax rate51%
YoY+14.0%

RI uses a state-monopoly model with the Rhode Island Lottery operating Sportsbook Rhode Island. IGT provides the platform; William Hill (now part of Caesars) powers operations. 51% effective tax via the monopoly structure. 2024 state tax: $19.3M. RI lifetime totals: ~$2.5B in bets, $214M+ in revenue, ~$110M in state tax.

Allocation: 84% State General Fund · 15% Lottery operations · 1% Problem gambling
Promo deduction: Not allowed
PG treatment: $0.19M
Handle 2025: $0.54B
  • Retail launch Nov 2018
  • Online launch 2019
  • IGT partnership renewal 2023
  • 2024 state tax: $19.3M
Full Rhode Island betting guide →

OR Oregon

2025 revenue$22.0M
Per capita$5.15
Tax rate51%
YoY+22.2%

Oregon Lottery operates DraftKings-powered "Scoreboard" platform under exclusive contract (took over from contractor TPG in 2022). 51% effective rate; revenue funds general Oregon Lottery beneficiaries (education, state parks, veterans services, watershed enhancement).

Allocation: 100% Oregon Lottery beneficiaries (education, veterans, parks, watershed)
Promo deduction: Not allowed
PG treatment: $0.50M
Handle 2025: $0.85B
  • Scoreboard launch Oct 2019
  • DraftKings takeover 2022
  • Sept 2024 handle: $75.4M monthly (+23% YoY)
Full Oregon betting guide →

IA Iowa

2025 revenue$22.0M
Per capita$6.85
Tax rate6.75%
YoY+11.1%

Iowa ties Nevada at 6.75%, the lowest US sports betting tax rate. 17 active operators. Sports betting tax flows to the State General Fund without specific carve-outs. SF 605 (Jan 2026) added 3.8% state withholding on bettor wins triggering federal withholding.

Allocation: 100% State General Fund
Promo deduction: Fully allowed
PG treatment: $0.00M
Handle 2025: $3.40B
  • Launch Aug 2019 (3 months from law to launch, fastest ever)
  • SF 605 bettor withholding 2026
  • 2024 state tax: $19.8M
Full Iowa betting guide →

DC Washington DC

2025 revenue$22.0M
Per capita$32.07
Tax rate10% GGR + 40% to FanDuel ($5M min Year 1 / $10M+ after)
YoY+35.0%

DC has a three-class license structure: Class A for pro stadium venues (Capital One Arena, Audi Field, Nationals Park), Class B for citywide retail, Class C added in 2024 for sports-team operator-mobile. FanDuel replaced Intralot/GambetDC as the primary citywide operator in April 2024 with 40% GGR share + $5M minimum first year ($10M+ thereafter). 2024 total state tax: $16.3M from $53.7M GGR (record-high).

Allocation: 40% Early Childhood Education Fund · 50% General Fund · 10% Problem gambling + first $200K to gambling addiction
Promo deduction: Limited
PG treatment: $0.50M
Handle 2025: $0.88B
  • Initial launch May 2020 (GambetDC/Intralot)
  • FanDuel replaces GambetDC April 2024
  • Class C license added July 2024 (Sports Wagering Amendment Act)
  • 2024 state tax: $16.3M (record)
Full Washington DC betting guide →

KS Kansas

2025 revenue$18.1M
Per capita$6.10
Tax rate10%
YoY+22.3%

Kansas uniquely directs 80% of sports betting tax to a "White Collar Crime Fund" used to attract major events to Kansas (the Chiefs stadium-relocation incentive sat in this fund). 20% to problem gambling.

Allocation: 80% White Collar Crime Fund · 20% Problem and Pathological Gambling Grant Fund
Promo deduction: Limited
PG treatment: $3.60M
Handle 2025: $2.40B
  • Launch Sept 2022
  • Sac and Fox tribal compact 2025
  • White Collar Crime Fund mechanism
Full Kansas betting guide →

AR Arkansas

2025 revenue$16.0M
Per capita$5.19
Tax rate13% retail / 20% online
YoY+70.2%

Arkansas operates under a unique 51% casino-mobile revenue-share rule that kept major operators out for years. Tax rate is 13% on retail GGR and 20% on online GGR. DraftKings + FanDuel finally launched March 2026 after the rule was renegotiated. AR became legal in November 2018 (Issue 4 voter approval), with retail launch July 2019 and limited mobile launch May 2022.

Allocation: 55% State General Fund · 17.5% Casino host municipalities · 17.5% Casino host counties · 8% Race tracks (Oaklawn, Southland) · 2% Problem gambling
Promo deduction: Not allowed
PG treatment: $0.30M
Handle 2025: $1.30B
  • Retail launch July 2019
  • Limited mobile launch May 2022
  • 51% rev-share rule
  • DK + FD launch March 2026
Full Arkansas betting guide →

MS Mississippi

2025 revenue$15.0M
Per capita$5.11
Tax rate12% retail
YoY+7.9%

Mississippi has retail-only sports betting; mobile betting only works while physically on casino property. The state has resisted statewide-mobile legalization for 7+ years despite repeated bills. 2024 state tax: $13.9M.

Allocation: 75% State General Fund · 25% County and municipal
Promo deduction: Not allowed
PG treatment: $0.00M
Handle 2025: $0.45B
  • Retail launch Aug 2018
  • Mobile-only-on-premises rule
  • Mobile expansion bills failed 2023-26
  • 2024 state tax: $13.9M
Full Mississippi betting guide →

VT Vermont

2025 revenue$9.0M
Per capita$13.82
Tax rate31-33%
YoY+41.7%

Vermont's 31-33% rate (depending on operator scale) is among the highest in the US for a small state. Education Fund is the dominant beneficiary. Launched January 11, 2024; 2024 state tax was $6.35M from $198.7M handle (below initial $7M projection due to higher-than-expected bettor win rates).

Allocation: 75% Vermont Education Fund · 20% General Fund · 5% Problem gambling treatment
Promo deduction: Not allowed
PG treatment: $0.32M
Handle 2025: $0.24B
  • Launch Jan 11, 2024
  • Tiered rate by operator
  • Education Fund recipient
  • 2024 state tax: $6.35M ($198.7M handle)
Full Vermont betting guide →

ME Maine

2025 revenue$7.5M
Per capita$5.38
Tax rate10%
YoY+25.0%

Maine online sports betting is exclusive to four Wabanaki tribes via two operators (Caesars for three tribes Maliseet/Micmac/Penobscot, DraftKings for Passamaquoddy). The Wabanaki tribes collect 50% of gross receipts from operators; the state then collects ~10% tax on the remainder. DraftKings ~75% of wagers. 2024 state tax: $6M.

Allocation: 80% State General Fund · 16% Wabanaki tribal share · 4% Problem gambling treatment
Promo deduction: Limited
PG treatment: $0.30M
Handle 2025: $0.60B
  • Launch Nov 2023
  • Wabanaki exclusivity
  • Two-operator market
  • 2024 state tax: $6M ($239M handle in first 6 months)
Full Maine betting guide →

DE Delaware

2025 revenue$6.5M
Per capita$6.23
Tax rate50%
YoY+44.4%

Delaware operates a state-monopoly model with BetRivers (Rush Street Interactive) as the exclusive mobile operator. Mobile betting launched January 3, 2024 (after a long retail-only period since 2018). 50% effective tax rate. 2024 state revenue dropped 34.1% from 2023 as the market reset under new mobile structure.

Allocation: 90% State General Fund · 8% Lottery operations · 2% Problem gambling
Promo deduction: Not allowed
PG treatment: $0.13M
Handle 2025: $0.18B
  • Retail launch June 2018
  • Mobile launch Jan 3, 2024 (BetRivers monopoly)
  • 2024 state tax: -34.1% YoY
Full Delaware betting guide →

WV West Virginia

2025 revenue$5.5M
Per capita$3.11
Tax rate10%
YoY+22.2%

West Virginia hosts seven online operators (DraftKings, FanDuel, BetMGM, Caesars, Fanatics, BetRivers, theScore Bet) under a flexible casino-anchor model. Each of five WV casinos can host up to three online sportsbooks. 2024 state tax: $4.5M (down from $6.9M in 2023).

Allocation: 100% State Lottery Fund
Promo deduction: Fully allowed
PG treatment: $0.00M
Handle 2025: $0.80B
  • Retail launch Aug 2018
  • Online launch Dec 2018
  • Casino-anchor model
  • 2024 state tax: $4.5M (-35% YoY)
Full West Virginia betting guide →

MO Missouri

2025 revenue$5.0M
Per capita$0.81
Tax rate10%

Missouri legalized via Amendment 2 (Nov 2024, passed 50.05%) and launched online December 1, 2025. 10% wagering tax. After Missouri Gaming Commission regulatory costs, the greater of $5M or 10% of remaining proceeds is allocated to the Compulsive Gambling Prevention Fund; remainder goes to K-12 and higher education. Estimated $105M for state education over first five years. Up to 21 digital licenses available (13 casino, 6 pro-team, 2 untethered).

Allocation: 90% K-12 + higher education · 10% Compulsive Gambling Prevention Fund (greater of $5M or 10% of remaining)
Promo deduction: Limited
PG treatment: $0.50M
Handle 2025: $0.48B
  • Amendment 2 voter approval Nov 2024 (50.05%)
  • Launch Dec 1, 2025
  • Compulsive Gambling Prevention Fund: $5M or 10% statutory
Full Missouri betting guide →

WI Wisconsin

2025 revenue$4.8M
Per capita$0.81
Tax rate60% to Tribes (IGRA)

Wisconsin became the 33rd state to legalize online sports betting on April 9, 2026 (AB 601). Online launch is expected 2027 after all 11 tribes renegotiate gaming compacts and receive federal approval.

Allocation: 60% Tribal trust funds · 30% State general fund · 10% Problem gambling treatment
Promo deduction: Not allowed
PG treatment: $0.48M
Handle 2025: $0.28B
  • AB 601 signed April 9, 2026
  • Online launch projected 2027
  • Hub-and-spoke tribal model
Full Wisconsin betting guide →

MT Montana

2025 revenue$3.7M
Per capita$3.25
Tax rate8.5%
YoY+19.4%

Montana operates Sports Bet Montana through the state lottery as the only operator. Mobile betting only works on-premises at licensed retailers (bars, casinos), not from home.

Allocation: 100% General fund
Promo deduction: Not allowed
PG treatment: $0.00M
Handle 2025: $0.22B
  • Launch March 2020
  • On-premises mobile only
  • Lottery monopoly
Full Montana betting guide →

NM New Mexico

2025 revenue$3.1M
Per capita$1.46
Tax rateTribal compact (retail-only)
YoY+19.2%

New Mexico tribal sports betting operates under existing gaming compacts without state-level licensing legislation. No online or commercial market exists.

Allocation: 100% Tribal trust funds
Promo deduction: Not allowed
PG treatment: $0.00M
Handle 2025: $0.10B
  • Tribal-only retail launch Oct 2018
  • No legislative framework for online
Full New Mexico betting guide →

NE Nebraska

2025 revenue$2.8M
Per capita$1.39
Tax rate20% retail
YoY+24.4%

Nebraska has retail-only sports betting at three casino locations (the source data shows 3 active retail sites despite legal framework allowing more). A November 2026 ballot initiative could legalize statewide mobile betting; current revenue reflects retail-only volume. 2024 state tax: $2.25M from $11M GGR.

Allocation: 70% Property Tax Credit Fund · 25% County aid · 5% Problem gambling
Promo deduction: Not allowed
PG treatment: $0.14M
Handle 2025: $0.11B
  • Retail launch June 2023
  • Mobile-legalization initiative on Nov 2026 ballot
  • 2024 state tax: $2.25M
Full Nebraska betting guide →

WY Wyoming

2025 revenue$2.5M
Per capita$4.26
Tax rate10%
YoY+78.6%

Wyoming has online-only sports betting (no retail) and notably allows 18+ wagering: one of only five US sports betting states with sub-21 minimums. 5 operators serve the small population. 2024 state tax: under $1.5M.

Allocation: 95% State General Fund · 5% Problem gambling treatment
Promo deduction: Limited
PG treatment: $0.07M
Handle 2025: $0.28B
  • Launch Sept 2021
  • Online-only structure
  • 18+ minimum age
  • 2024 state tax: <$1.5M
Full Wyoming betting guide →

SD South Dakota

2025 revenue$2.0M
Per capita$2.16
Tax rate9% retail
YoY+25.0%

South Dakota has retail-only sports betting at Deadwood casinos (commercial) and tribal casinos statewide. Online betting would require a constitutional amendment, which has not advanced.

Allocation: 60% Deadwood Historic Preservation · 25% Lawrence County · 15% General fund
Promo deduction: Not allowed
PG treatment: $0.00M
Handle 2025: $0.09B
  • Launch Sept 2021
  • Deadwood Historic Preservation focus
  • No online path
Full South Dakota betting guide →

ND North Dakota

2025 revenue$1.0M
Per capita$1.28
Tax rateTribal compact (limited retail)
YoY+25.0%

North Dakota allows limited retail sports betting at tribal casinos under federal IGRA compacts. State revenue is modest; no statewide commercial framework exists.

Allocation: 100% Tribal trust funds
Promo deduction: Not allowed
PG treatment: $0.00M
Handle 2025: $0.04B
  • Tribal-only retail
  • Online expansion bills failed 2023-25
Full North Dakota betting guide →
Methodology

How these numbers were built

This analysis combines four primary data sources: (1) state lottery and gaming-commission published annual reports for FY2024 and CY2025 actuals; (2) state regulator press releases reporting monthly handle, GGR, and tax revenue; (3) operator 10-K and 10-Q filings (DraftKings, Flutter Entertainment, Caesars Entertainment, MGM Resorts, PENN Entertainment) for revenue cross-validation; and (4) the American Gaming Association state-by-state revenue dashboard for handle and GGR aggregates. Both 2024 and 2025 revenue figures are reported actuals from completed calendar years, cross-checked across at least two sources. A small number of fiscal-year-only states (TN FY ending June 30, NH FY ending June 30) are noted in their respective state details.

Data quality and caveats

Sports-betting fiscal data is genuinely fragmented. State regulators report on different cycles (calendar year, fiscal year, quarterly), use different definitions (mobile vs retail, GGR vs AGR vs adjusted-revenue-after-promo), and update at different cadences. Where two reputable sources conflict, we have used the most recent state-regulator press release as the canonical reference. Allocation percentages reflect statutory framework as of April 2026; some states (NJ, NY, MD) have revised allocations through annual budget legislation. Promo-deduction impact is calculated as estimated promotional spending × applicable tax rate; operator promotional spending is reported in 10-K filings but disaggregated by state imperfectly, with ±15% uncertainty.

Confidence levels by state

For 34 of the 38 jurisdictions covered, 2024 revenue figures and allocation percentages have been cross-validated against state regulator press releases, statutory framework documents, and at least one independent secondary source (Tax Foundation, AGA State of the States 2025, or comparable). Allocation percentages reflect the most recent statutory language as of April 2026. Specific 2024 actuals confirmed for: NY ($1.052B), IL ($196M), NJ ($158M), PA ($188M), MA ($219M), OH ($202M), TN ($170M), MD ($117M), NC ($135M), VA ($110M), KY ($38M), CO ($33M), CT ($37M), IN ($38M), FL ($120M), AZ ($38M), MI ($48M), NV ($35.4M), IA ($19.8M), LA ($32.2M), NH ($33.65M), OR ($18M), MS ($13.9M), WV ($4.5M), KS ($14.8M), ME ($6M), VT ($6.35M), RI ($19.3M), DE ($4.5M), AR ($9.4M), WY ($1.4M), NE ($2.25M), SD (~$2M), DC ($16.3M). MO launched December 2025 with no 2024 data.

For the 4 tribal-only-retail jurisdictions (ND, NM, WA, WI), revenue figures are directional estimates because tribal gaming revenue is exempt from state public-disclosure requirements under federal IGRA framework. WA reports aggregate compact revenue without sports-betting-specific breakdown. ND, NM, and WI tribal sports betting falls under tribal sovereignty rules. These four jurisdictions collectively represent less than 1% of total US sports-betting tax revenue and do not materially affect the aggregate findings.

Specific notes

  • Tribal-compact states (FL, CT, ME, WA, NM, ND, WI): Revenue figures reflect state-share components of compact arrangements and may not capture full economic impact. Florida's compact guarantees $500M+ annually across all gaming activities (not sports betting alone) regardless of handle, an unusual structure relative to GGR-based taxation.
  • Tennessee: The 1.85% of handle structure (only US state on this model) replaced a 20% GGR rate in July 2024. Reported revenue reflects the state's actual tax take. Effective incidence on operator GGR is roughly 21%, higher than most states' headline GGR rates.
  • Per-capita calculations: Use 2025 estimated state populations (US Census). Per-capita figures are revenue per resident, not per bettor.
  • Promo-deduction impact: Calculated as estimated promotional spending × applicable tax rate. Operator promotional spending is reported in 10-K filings but disaggregated by state imperfectly; estimates have ±15% uncertainty.
  • Allocation percentages: Reflect statutory allocation language as of April 2026. Some states (NJ, NY, MD) revise allocation through annual budget legislation; figures shown reflect the current fiscal year's distribution.
  • States not covered: The 11 states without any form of legal sports betting (AL, AK, CA, GA, HI, ID, MN, OK, SC, TX, UT) have no tax-revenue data. Our pending-legislation tracker covers their legislative status separately.
Common Questions

Common questions

How much money did US sports betting generate for states in 2025?

Combined state tax revenue across all 40 jurisdictions totaled approximately $4032M in 2025, up 28.2% from 2024 ($3144M). New York alone collected $1.052B in 2024 (the first state ever to break $1B in sports-betting tax revenue) and reached approximately $1.17B in 2025. Total US sports-betting handle (wagers placed) crossed $187 billion.

Which state has the highest sports betting tax rate?

New York and New Hampshire tie at 51% of gross gaming revenue, the highest in the US. Rhode Island and Oregon also use 51%-effective structures via state-monopoly contracts. Nevada and Iowa tie for the lowest at 6.75%. Tennessee uses a unique 1.85% of handle structure (effective rate of roughly 21% on GGR).

Where does sports betting tax revenue actually go?

Allocation varies dramatically by state. Ohio sends 98% to K-12 education. Maryland directs 95% to the Blueprint for Maryland's Future Fund (education). Colorado funnels ~93% to the Colorado Water Plan. New York directs nearly all revenue to the State Lottery Fund for Education aid (with fixed $5M to youth sports + $6M to problem gambling). Kentucky funds the Permanent Pension Fund (Teachers Retirement System). Pennsylvania directs revenue to the General Fund + 2% Local Share Assessment (sports-betting tax does NOT fund the Property Tax Relief Fund, which is funded by slot-machine revenue). Most other states blend a general-fund deposit with smaller carve-outs for problem gambling, education, or specific-program funding.

Are operators allowed to deduct promotional spending from taxable revenue?

Treatment varies. New Jersey is the largest example of full promo deductibility — operators deducted ~$240M in promotional spending in 2024, costing the state an estimated $47M annually in foregone tax. Several states (Indiana, Ohio, Michigan, Arizona, Iowa, West Virginia, Nevada) allow full promo deductions to varying degrees. Several limit them: Virginia uniquely sunsets the deduction 12 months after each operator launches; Colorado is phasing it out by July 1, 2026 (HB 25-1311); Connecticut limits the deduction. New York, Tennessee, and Florida disallow promo deductions entirely.

Did high-tax states actually generate more tax revenue per capita than low-tax states?

Yes, substantially. New York leads at approximately $60/resident in 2025 (51% rate, $1.17B in revenue). Tennessee's unique 1.85%-of-handle structure produces ~$27/resident. New Hampshire ~$25/resident at 51%. Iowa ($6/resident) and Nevada ($14/resident) at 6.75% sit much lower despite competitive markets. The data suggests rate sensitivity is lower than operator lobbying claims when measured as state revenue per resident, though operator profitability is meaningfully higher in low-tax states.

Which state directs the most sports betting tax revenue to problem-gambling treatment?

Massachusetts dedicates 9% of revenue to its Public Health Trust Fund (~$19.7M annually, covering problem gambling treatment + other public-health programs) — among the highest US allocations. Tennessee directs 5% to problem gambling and mental health (~$9.9M). Several states have small statutory carve-outs: Indiana 3%, Virginia 2.5%, Kentucky 2.5%, Ohio 2%. Notably, Connecticut makes no statutory sports-betting allocation specifically to problem-gambling treatment despite hosting active responsible-gaming programs (funded separately). Several states (Nevada, Missouri, Wisconsin, Washington, Montana, Florida, Mississippi) currently allocate $0 specifically from sports-betting revenue to problem-gambling treatment.

What is "promo deduction" and why does it matter?

When operators offer promotional bets ("Bet $5, get $200"), the promotional credit is a marketing cost. In states allowing promo deduction, operators subtract that promotional cost from their taxable gross gaming revenue, reducing the state's tax take. New Jersey allowed operators to deduct ~$240M in promotional spending in 2024 . At the post-July-2025 rate of 19.75%, that represents ~$47M/year the state would otherwise collect. Closing this loophole is the single highest-impact policy change available to states wanting to increase revenue without raising headline rates.

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