The expansion pace for the online sports betting industry can only be described as lightning-fast now.
Just looking at the situation – the states continue legalizing betting, and companies like FanDuel and DraftKings innovate at every turn – it’s clear this is only the beginning for sports betting in the US.
This article will examine the numbers and discuss the legal changes fueling this fast-paced growth. Through a personal, Philly-based lens, here’s what’s unfolding in the world of online sports betting!
2024 Online Sports Betting Boom Rolls Into 2025
The sports betting industry broke records in 2024, with $149 billion in total handle (the amount wagered on sports) and $14.2 billion in revenue across 30+ states and Washington, D.C.
When we compare the numbers to 2023, when the market saw $11 billion in sportsbook earnings, the data shows that the revenue has increased by 29%.
This trend has continued into early 2025, with the year’s first quarter demonstrating strong momentum in the online gaming sector. In January alone, online gambling — which includes casino & sports betting — generated $2.36 billion in revenue nationwide, representing a 14.6% increase when compared to the same period last year.
Of that total, sports betting alone is estimated to have brought in $827.2 million in revenue.
Key Growth Drivers:
- State Legalization: By 2024, over 35 states, including newcomers like Kentucky and North Carolina, had legalized online betting.
- Mobile Sports Betting Takes Over: Most wagers were placed using mobile betting apps.
- Cultural Integration: Partnerships with streaming platforms and major sports leagues, like the NFL and NBA, have amplified sportsbook operators’ reach.
In Pennsylvania, where betting was legalized in 2017, operators like BetMGM and FanDuel have pushed local promotions tailored to Philly sports fans, leveraging hometown pride to full effect. During playoff season, betting ads featuring slogans like “Back the Birds” aren’t just online—they’re on billboards, transportation hubs, and even local sports talk shows.
US Sports Betting Market Size by the Numbers
To truly understand the market’s explosive growth, we need to look at the hard data fueling it. Here’s how online sports betting looks in numbers:
- Market Value: The U.S. online sports betting market hit a valuation of $5.66 billion in 2023, with projections of $16 billion by 2032.
- Tax Revenue: States collectively earned $2.9 billion in tax revenue from sports betting in 2024, an increase of 19% from the previous year.
- User Participation: Various data shows a 40% increase year-over-year in sports betting participation.
- Expected Growth in 2025: The U.S. online sports betting market is expected to keep climbing in 2025. Industry reports suggest that the market could reach approximately $26.8 billion in gross revenue by the end of the year, fueled by continued state-level legalization and the rising popularity of mobile platforms.
What’s fascinating here is how quickly sports betting has mainstreamed. After the Supreme Court repealed the Professional and Amateur Sports Protection Act (PASPA) in 2018, it felt niche at best. Now it’s common for Eagles fans at Xfinity Live to check live odds on their phones mid-game between bites of a cheesesteak – or so I’ve noticed.
What Does the Growing Sports Betting Market Mean for Everyone?
What does rapid market growth mean for society? There are upsides – and some downsides when looking at these sports betting graphs.
Benefits:
- Apps are getting better – smoother navigation and faster payouts for users.
- Competition between sportsbooks leads to creative promotions and better odds for consumers.
- Tax revenue pours back into public budgets, which can fund programs like education and addiction services.
Downsides:
- Studies estimate about 1-6% of American bettors struggle with gambling addiction.
- Over-saturation of ads and promotions can feel predatory, especially toward younger consumers.
- Casual bettors risk making poor financial decisions when manipulated by complex bet types – parlays, most notably.
The Role of Philadelphia in the National Market
Philadelphia is one of the epicenters of sports betting, thanks in part to its diehard fanbase. Pennsylvania’s $819 million in operator revenue for 2024 ranked it fifth nationally, while tax contributions were equally impressive at $197 million.
Then, we should probably touch on the rise of localized pools, one of the more popular phenomena here. Platforms know Philly isn’t just a city but a sports identity. Whether it’s betting on Joel Embiid’s total points in a Sixers game or picking Bryce Harper props for the Phillies, these bets lean into local enthusiasm.
What’s Next for the Sports Betting Market?
The sports betting industry isn’t slowing down. Let’s touch on a few trends you might want to keep your eyes on.
- State Expansion: With heavyweights like California and Texas still on the sidelines, new markets could double industry size.
- Crypto Betting: Expect platforms experimenting with Bitcoin and Ethereum wagers to grow in 2025.
- eSports: Sports betting’s younger cousin is creeping into the mainstream, with growing interest from Gen Z.
From where I sit in Philly, the future is as dynamic as the industry itself. Betting has gone from a fringe activity to an integrated piece of the sports experience – both exhilarating and sobering as the stakes rise, figuratively and literally.
The Bottom Line on Online Sports Betting Revenue
That wraps up our discussion on sports betting. The U.S. online sports betting market saw substantial growth in 2024, with $149 billion in total bets placed and $14.2 billion in betting revenue — that revenue figure is expected to soar past $25 billion in 2025.
Emerging platforms like Fanatics and Hard Rock are now competing with giants like FanDuel, while Philadelphia and Pennsylvania remain crucial to the national market, contributing $819 million in operator revenue.
Despite this growth, there are ongoing concerns about addiction and financial responsibility.
