Sports betting popularity by state

Sports betting popularity by state

In addition to taking on the risks of gambling, taxpayers must pay their regular income tax rate on net winnings. U.S. states collected $2.6 billion in taxes on sports betting in 2024, a 29% increase from the year before. Incentivized by this tax revenue, many states have been loosening their sports-betting laws, with more considering similar action. Online sports-betting platforms such as DraftKings and FanDuel have proliferated in response. The taxes on wins, in turn, can serve as a proxy for overall sports-betting activity.

With the current dynamism of gambling legislation across the nation, SmartAsset ranked 43 states with available data based on the total taxes collected from sports betting in each state, including relative proportions of the total taxes collected by the state and year-over-year change.

Key Findings

• Gamblers are at least five times luckier in New York. Based on the gross taxes collected from sports betting, New Yorkers are winning the most. With $912.9 million collected in taxed winnings, New York state is inching toward the $1 billion mark. Pennsylvania ranks second with just a fraction of this, at $187.9 million in taxes collected over one year.
• Sports gambling makes up the biggest portion of the tax base in Montana. 1.35% of the state’s total collected taxes were from sports betting, making Montana the only state to exceed 1%, with $63.8 billion in sports-betting revenue. Meanwhile, in states with tighter restrictions on sports betting — including Wisconsin, Nebraska, and Washington — taxes collected on winnings equate are virtually nonexistent at less than 0.01% of all tax revenue.
• Taxable winnings skyrocketed three times in two states. Maryland saw a 260% increase in the tax revenue collected from sports betting between 2023 and 2024, going from $32.6 million in revenue to $117.3 million. Massachusetts saw similar growth, going from $39.4 million in revenue to $121.3 million — a 208% increase.
• Sports betting tax revenue declined more than 30% in these states. Over the course of one year, the luck (or interest) declined most in West Virginia at -35.4%, with taxes collected dropping from $6.9 million in 2023 to $4.5 million in 2024. Delaware (-34.1%) and Nebraska (-31.8%) collections also dropped significantly in this timeframe.

Sports Betting by State

States are ranked based on the taxes collected on sports betting over the course of one year.

1. New York

• Taxes collected: $912.874 million
• Percentage of all state tax revenue: 0.76%
• Sports betting taxes paid per capita: $45.95
• One-year change in taxes collected: 20.60%

2. Pennsylvania

• Taxes collected: $187.851 million
• Percentage of all state tax revenue: 0.34%
• Sports betting taxes paid per capita: $14.36
• One-year change in taxes collected: 7.14%

3. Illinois

• Taxes collected: $178.026 million
• Percentage of all state tax revenue: 0.27%
• Sports betting taxes paid per capita: $14.01
• One-year change in taxes collected: 28.16%

4. Ohio

• Taxes collected: $143.850 million
• Percentage of all state tax revenue: 0.38%
• Sports betting taxes paid per capita: $12.11
• One-year change in taxes collected: 103.80%

5. New Jersey

• Taxes collected: $133.573 million
• Percentage of all state tax revenue: 0.26%
• Sports betting taxes paid per capita: $14.06
• One-year change in taxes collected: 26.73%

6. Massachusetts

• Taxes collected: $121.310 million
• Percentage of all state tax revenue: 0.28%
• Sports betting taxes paid per capita: $17.00
• One-year change in taxes collected: 208.28%

7. Maryland

• Taxes collected: $117.336 million
• Percentage of all state tax revenue: 0.38%
• Sports betting taxes paid per capita: $18.73
• One-year change in taxes collected: 259.95%

8. Tennessee

• Taxes collected: $87.569 million
• Percentage of all state tax revenue: 0.36%
• Sports betting taxes paid per capita: $12.12
• One-year change in taxes collected: 5.12%

9. Virginia

• Taxes collected: $83.157 million
• Percentage of all state tax revenue: 0.22%
• Sports betting taxes paid per capita: $9.44
• One-year change in taxes collected: 16.22%

10. Nevada

• Taxes collected: $68.611 million
• Percentage of all state tax revenue: 0.46%
• Sports betting taxes paid per capita: $21.00
• One-year change in taxes collected: 71.55%

11. Kentucky

• Taxes collected: $65.587 million
• Percentage of all state tax revenue: 0.38%
• Sports betting taxes paid per capita: $14.29
• One-year change in taxes collected: 16.99%

12. Montana

• Taxes collected: $63.822 million
• Percentage of all state tax revenue: 1.35%
• Sports betting taxes paid per capita: $56.12
• One-year change in taxes collected: 7.52%

13. Louisiana

• Taxes collected: $56.873 million
• Percentage of all state tax revenue: 0.36%
• Sports betting taxes paid per capita: $12.37
• One-year change in taxes collected: 46.30%

14. Indiana

• Taxes collected: $43.488 million
• Percentage of all state tax revenue: 0.17%
• Sports betting taxes paid per capita: $6.28
• One-year change in taxes collected: 7.45%

15. Arizona

• Taxes collected: $40.671 million
• Percentage of all state tax revenue: 0.17%
• Sports betting taxes paid per capita: $5.36
• One-year change in taxes collected: 18.35%

16. Oregon

• Taxes collected: $39.530 million
• Percentage of all state tax revenue: 0.23%
• Sports betting taxes paid per capita: $9.25
• One-year change in taxes collected: 22.54%

17. New Hampshire

• Taxes collected: $33.655 million
• Percentage of all state tax revenue: 0.94%
• Sports betting taxes paid per capita: $23.89
• One-year change in taxes collected: -8.70%

18. Colorado

• Taxes collected: $30.198 million
• Percentage of all state tax revenue: 0.16%
• Sports betting taxes paid per capita: $5.07
• One-year change in taxes collected: 20.72%

19. Connecticut

• Taxes collected: $23.100 million
• Percentage of all state tax revenue: 0.10%
• Sports betting taxes paid per capita: $6.29
• One-year change in taxes collected: 22.82%

20. California

• Taxes collected: $21.385 million
• Percentage of all state tax revenue: 0.01%
• Sports betting taxes paid per capita: $0.54
• One-year change in taxes collected: 10.12%

21. Rhode Island

• Taxes collected: $20.566 million
• Percentage of all state tax revenue: 0.39%
• Sports betting taxes paid per capita: $18.49
• One-year change in taxes collected: -23.78%

22. Michigan

• Taxes collected: $19.575 million
• Percentage of all state tax revenue: 0.05%
• Sports betting taxes paid per capita: $1.93
• One-year change in taxes collected: 18.01%

23. Iowa

• Taxes collected: $18.334 million
• Percentage of all state tax revenue: 0.14%
• Sports betting taxes paid per capita: $5.66
• One-year change in taxes collected: 7.61%

24. Wyoming

• Taxes collected: $17.188 million
• Percentage of all state tax revenue: 0.65%
• Sports betting taxes paid per capita: $29.25
• One-year change in taxes collected: 25.74%

25. Florida

• Taxes collected: $12.165 million
• Percentage of all state tax revenue: 0.02%
• Sports betting taxes paid per capita: $0.52
• One-year change in taxes collected: 12.64%

26. Kansas

• Taxes collected: $11.593 million
• Percentage of all state tax revenue: 0.09%
• Sports betting taxes paid per capita: $3.90
• One-year change in taxes collected: 99.02%

27. Alabama

• Taxes collected: $11.267 million
• Percentage of all state tax revenue: 0.07%
• Sports betting taxes paid per capita: $2.18
• One-year change in taxes collected: 36.44%

28. Delaware

• Taxes collected: $8.849 million
• Percentage of all state tax revenue: 0.14%
• Sports betting taxes paid per capita: $8.41
• One-year change in taxes collected: -34.12%

29. Arkansas

• Taxes collected: $7.840 million
• Percentage of all state tax revenue: 0.06%
• Sports betting taxes paid per capita: $2.54
• One-year change in taxes collected: 24.17%

30. West Virginia

• Taxes collected: $4.486 million
• Percentage of all state tax revenue: 0.06%
• Sports betting taxes paid per capita: $2.53
• One-year change in taxes collected: -35.42%

31. Mississippi

• Taxes collected: $4.411 million
• Percentage of all state tax revenue: 0.04%
• Sports betting taxes paid per capita: $1.50
• One-year change in taxes collected: 32.74%

32. Texas

• Taxes collected: $4.203 million
• Percentage of all state tax revenue: 0.00%
• Sports betting taxes paid per capita: $0.13
• One-year change in taxes collected: -14.22%

33. Vermont

• Taxes collected: $3.234 million
• Percentage of all state tax revenue: 0.07%
• Sports betting taxes paid per capita: $4.99
• One-year change in taxes collected: #DIV/0!

34. Maine

• Taxes collected: $3.176 million
• Percentage of all state tax revenue: 0.05%
• Sports betting taxes paid per capita: $2.26
• One-year change in taxes collected: 144.12%

35. Idaho

• Taxes collected: $1.472 million
• Percentage of all state tax revenue: 0.02%
• Sports betting taxes paid per capita: $0.74
• One-year change in taxes collected: 11.77%

36. North Dakota

• Taxes collected: $1.467 million
• Percentage of all state tax revenue: 0.03%
• Sports betting taxes paid per capita: $1.84
• One-year change in taxes collected: -0.20%

37. Minnesota

• Taxes collected: $1.381 million
• Percentage of all state tax revenue: 0.00%
• Sports betting taxes paid per capita: $0.24
• One-year change in taxes collected: -8.91%

38. New Mexico

• Taxes collected: $1.287 million
• Percentage of all state tax revenue: 0.01%
• Sports betting taxes paid per capita: $0.60
• One-year change in taxes collected: 35.19%

39. Washington

• Taxes collected: $1.078 million
• Percentage of all state tax revenue: 0.00%
• Sports betting taxes paid per capita: $0.14
• One-year change in taxes collected: -1.73%

40. Oklahoma

• Taxes collected: $1.049 million
• Percentage of all state tax revenue: 0.01%
• Sports betting taxes paid per capita: $0.26
• One-year change in taxes collected: -8.70%

41. South Dakota

• Taxes collected: $0.177 million
• Percentage of all state tax revenue: 0.01%
• Sports betting taxes paid per capita: $0.19
• One-year change in taxes collected: -19.18%

42. Nebraska

• Taxes collected: $0.103 million
• Percentage of all state tax revenue: 0.00%
• Sports betting taxes paid per capita: $0.05
• One-year change in taxes collected: -31.79%

43. Wisconsin

• Taxes collected: $0.000 million
• Percentage of all state tax revenue: 0.00%
• Sports betting taxes paid per capita: $0.00
• One-year change in taxes collected: 0.00%

Data and Methodology

Data comes from the U.S. Census Bureau’s State Government Tax Tables for tax years 2024, 2023 and 2019. States were ranked based on the tax revenue collected on sports betting wins during the respective tax years and for the purposes of this study serve as a proxy for overall online sports betting activity. Data was available for 43 states, Washington D.C. and the United States as a whole. Data was not available for Alaska, Georgia, Hawaii, Missouri, North Carolina, South Carolina and Utah. Data availability and sports-betting tax trends over time may be influenced by respective and developing gambling laws set by each state. Reported winnings at the state level does not account for any winnings that may have been offset by losses.

This story was produced by SmartAsset and reviewed and distributed by Stacker.