US Sports Betting Reaches Record Levels in 2025 as Handle and Revenue Climb

Data from Track360 indicates that Americans legally wagered a record $166.94 billion on sports during 2025, marking an 11% increase from teh prior year while generating $16.96 billion in sportsbook gross gaming revenue, a 22.8% year-over-year rise, and $3.71 billion in state taxes.

The report compiles figures across regulated markets and shows how online platforms captured roughly 95% of total handle, leaving retail locations with a smaller share even as overall volume expanded in most states.

Handle Growth and Revenue Patterns

New York led all states with $26.3 billion in handle, followed by other established markets that posted consistent gains throughout the calendar year, and observers note that the concentration of activity among two major operators, FanDuel and DraftKings, remained pronounced as both platforms captured the majority of online wagers.

Hold rates climbed during the period because of increased parlay betting, which typically carries higher margins for sportsbooks, and this shift helped push gross gaming revenue ahead of handle growth even though the overall number of bets placed rose at a steadier pace.

State-by-State Breakdowns

Figures reveal wide variation across jurisdictions, with New York accounting for the largest single share while states such as Pennsylvania, New Jersey, and Illinois each contributed several billion dollars in handle, and smaller markets continued to add volume as more operators received licenses and launched mobile apps.

Tax collections totaled $3.71 billion nationwide, providing direct revenue to state budgets, and the distribution of those funds followed the same geographic pattern as handle, with larger markets delivering the bulk of collections while newer entrants contributed smaller but growing amounts.

Online Dominance and Market Concentration

Online channels handled approximately 95% of all wagers, a share that has held steady even as total volume increased, and this dominance reflects the convenience of mobile apps along with promotional offers that have become standard across the industry.

Market concentration around FanDuel and DraftKings persisted, with both companies maintaining leading positions in most states where they operate, while a handful of smaller competitors captured the remaining online activity and retail sportsbooks accounted for the rest of the handle.

Hold Rates and Parlay Influence

Rising hold rates driven by parlays appear throughout the 2025 data, and this trend allowed sportsbooks to convert a larger percentage of handle into revenue even when bet volumes grew at a more moderate rate than in previous years.

State regulators continue to track these metrics closely because higher hold percentages affect both operator profitability and the amount of taxable revenue generated, yet the overall expansion of the market has still produced record tax receipts across reporting jurisdictions.

Tax Revenue and Regulatory Context

The $3.71 billion in state taxes represents the direct fiscal impact of legal sports betting, and these collections flow into general funds or designated programs depending on each state's legislation, while the Commercial Gaming Revenue Tracker provides additional context on how sports wagering fits within broader gaming totals.

By mid-2026, states that legalized earlier continued to post steady gains, and newer markets began contributing as licensing processes concluded and operators launched their platforms.

Conclusion

The 2025 numbers compiled by Track360 establish a new baseline for legal sports betting in the United States, with handle, revenue, and tax figures all reaching record levels while the market structure remained centered on online platforms and a small number of major operators. Continued reporting from sources such as the Commercial Gaming Revenue Tracker will show whether these growth rates persist into future years.