The amount wagered legally on sports in the U.S. since the Supreme Court cleared the way seven years ago eclipsed a half trillion dollars late last month.
We don’t know the who, when or where of the wager that eclipsed the $500 billion mark. But based on totals reported thus far by regulators in 14 states, U.S. handle for March is sitting at $6.38 billion and tracking toward $14.5 billion, which would bring the total since states beyond Nevada started taking bets to $502 billion.
It’s important to note here that handle is not the amount that sportsbooks have made during that span. It is the amount that bettors wagered.
Still, a half trillion dollars wagered is a striking threshold, especially since about 65% of it came in the last three years.
To commemorate the occasion, here are five thoughts spurred by $500 billion in bets.
1) A quicker path to $500 billion that expected
This happened more quickly than even the more optimistic projections would have suggested, especially without legalization in California or Texas. That’s largely because handle continues to grow by double digits even in hefty states that have been open for three years or more.
Pennsylvania and Indiana, which opened in 2018, were up 19% and 20%, respectively, last year. Illinois, which opened in 2020, was up 20%. Colorado, another 2020 state, was up 11%. Five of the six states that opened in 2021 -- Tennessee, Virginia, Wyoming, Connecticut and Arizona -- were up more than 20%. The other, Michigan, was up 14%.
2) Rise of the Empire State
There is about a 15% chance that that half-trillionth dollar wagered was bet in New York, which has delivered that highest handle of any state each month since it opened in January, 2022. But you know what sportsbook operators talk about first when you ask about New York? Its 51% tax rate.
An irritant from the beginning, the sportsbooks hoped they’d be able to lobby the rate down over time. Instead, it has emboldened other states to raise their rates.
And these are states that matter.
More on that later.
3) Growth inside the Beltway
Though it is unlikely that the bet was placed in D.C., which accounted for only 1% of March handle reported so far, it is almost 6X more likely than it would have been a year ago, when the district operated under a convoluted setup that all but neutered online wagering, even though it was legal. D.C. sportsbooks took a record $86 million in wagers in March, up from $15.7 million last March.
The numbers from last March look as if they came from a time capsule. D.C. sportsbooks took more in retail bets ($8.8 million) than they did online ($6.8 million). That was the last month before D.C. leaders punted their lottery-based online provider, first in favor of FanDuel and then in an open market that allowed all licensed operators to take bets through their apps.
Last month, FanDuel accounted for 49% of D.C. handle, while DraftKings had 21% and Caesars had 12%. D.C. regulators no longer distinguish between online and retail in their monthly reports.
4) Happy birthday to the Tar Heel State
Among the 10 states that saw handle increase compared to last March was North Carolina, which was up 4%. While not an especially large gain, it’s notable because it was against the state’s launch month, which was fueled by $202.6 million in promotional wagers.
Sportsbooks reported $17.9 million in promo wagers last month. Though North Carolina didn’t open until March 10 last year, that was in time to take bets on all of March Madness, as well as the ACC and SEC basketball tournaments.
5) What’s actually going on in Florida?
While interesting, and reflective of strong demand, that $502 billion may deserve an asterisk, since there is no publicly available record of how much has been wagered in Florida since the Seminole tribe began taking bets through its Hard Rock Bet app in December 2023.
With an over-21 population of 17.2 million, Florida is the most populous state to allow sports betting.
How much are people there betting? Neither the state nor the tribe will say.
And, as promised, more on those rising tax rates
The North Carolina Senate approved a proposal this week that would double the state’s sports betting tax from 18% to 36%. This would draw it even with Pennsylvania for the fifth highest rate of any jurisdiction.
New York, New Hampshire and Rhode Island tax sports betting revenue at 51%, while Delaware taxes it at 50%. Illinois taxes operators on a sliding scale that ranges from 20% to 40%, with the leaders FanDuel and DraftKings the only two paying the highest rate.
Massachusetts legislators failed in an attempt to raise that state’s tax rate from 20% to 51% as part of the state budget bill last year, but have introduced the increase again this year as part of a larger bill that also regulates how much a bettor can wager in a day. Maryland’s budget proposes an increase from 15% to 30%. New Jersey’s proposal also would nearly double its rate, from 13% to 25%.
