Betting big in the USA
2024 U.S. Sports Betting Analysis: Colorado's Savvy Punters Emerge as Apex Betters
The US sports betting sector continues to skyrocket, with Americans placing over $150 billion through legal sportsbooks in 2024. Joining the fray, Vermont and North Carolina showcased their legal sportsbooks, with the latter impressing with a strong start.
Each jurisdiction has its unique strategy for sports betting. Some boast hefty tax rates like New York's 51%, while others boast single-digit effective rates. Let's examine some standout results from 2024 that may pique your interest.
A breakdown of the numbers
Junk bond trader Alfonso Straffon put together an intriguing table displaying the 2024 figures of states that publicly report results. Notable absences include Florida, as the Seminole Tribe isn't required to publicly report handle and revenue from Hard Rock Bet due to the state-tribal compact.
Analyzing this table, we noticed a few trends in betting activity, win rate, and tax impact across these states.
Location, Location, Location
While New York is well-known for its dominance in handle, with nearly $23 billion in 2024, New Jersey residents still bet significantly more per person than their New York counterparts. The handle breaks down to a spending of $1,835 per adult in New Jersey compared to $1,526 in New York.
Another interesting insight was North Carolina's result, which trails other states in handle despite being the sixth-most populous US state with legal sportsbooks, with just $672 in expenditure per adult in 2024. As the sector launched in March 2024, it's expected to mature with time.
Fortune favors the bold (or smart)
If you're wondering how states stack up for sharp bettors, you might be surprised. Coloradans had the best performance in 2024, with sportsbooks retaining just 7.7% of total handle. Iowa came in a close second with 7.9%. Conversely, the wooden spoon goes to Louisiana, which had a 12.5% hold rate.
The high tax approach
One of the driving factors behind the legalization of sports betting in almost 40 states is the resulting tax income. New York, for instance, yielded over $1 billion in 2024 from taxes on gross gaming revenue. Many states, like New York, are considering increasing their taxes, despite the 51% effective rate in the Empire State seemingly not hindering the sector. Illinois implemented a tax hike in July, raising its taxes to $29.50 per adult. Other states like Ohio and Maryland may follow suit to maximize operator revenue.
The concern for bettors is that this trend could drive certain sportsbooks away from the markets as tax rates increase or force them to offer less favorable odds to preserve their margins.
- In 2024, Americans placed over $150 billion in sports bets through legal sportsbooks, with Vermont and North Carolina debuting their own legal sportsbooks.
- Each jurisdiction has its unique strategy for sports betting, with New York boasting a hefty 51% tax rate while others have lower, effective rates.
- Junk bond trader Alfonso Straffon analyzed the 2024 figures of states that publicly report sports betting results, noting the absence of Florida due to the state-tribal compact.
- Analyzing the table, trends in betting activity, win rate, and tax impact were noticed across these states, with New York dominating in handle, even though New Jersey residents bet significantly more per person.
- North Carolina's result was lower than other states despite being the sixth-most populous US state with legal sportsbooks, which is expected to improve as the sector matures.
- The performance of sharp bettors varied across states, with Coloradans having the best performance in 2024, while Louisiana had the highest hold rate.
- States are considering increasing taxes on sports betting despite existing high rates, like New York's 51% effective rate, with Illinois raising its taxes in July to $29.50 per adult.
- Ohio and Maryland may follow Illinois's lead to maximize operator revenue, but this trend could drive certain sportsbooks away or force them to offer less favorable odds.
- Personal-finance, lifestyle, business, general-news, entertainment, casino-and-gambling, education-and-self-development, sports, football, baseball, hockey, golf, tennis, sports-betting, sports-analysis, and mixed-martial-arts are sectors intertwined with the sports betting industry.
- Technology plays a crucial role in the sports betting industry, improving the betting experience through mobile apps, real-time data, and advanced analysis tools.
- Effective operators adapt to changing market conditions, offering a diverse range of betting options, competitive odds, and bonus promotions to attract and retain customers.
- The sports betting sector's continued growth impacts personal finances, local economies, and the overall entertainment landscape, making it essential for financial planning and responsible gambling.
