United States Sports Betting Market Reaches $10 Billion Mark

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Operators have brought in $10.004 billion in revenue since the U.S. Supreme Court struck down the federal prohibition on sports betting outside of Nevada. Those earnings generated $1.511 billion in taxes for licensed betting jurisdictions around the country. This equates to an effective tax rate of 15.1 percent across the board.

It only took the country’s sports betting market a little over four years to reach $10 billion in revenue. New York was largely responsible for the sector reaching that milestone far sooner than industry analysts had predicted. There are still very high hopes for the future though.

The milestone was officially passed on Tuesday, and recent figures indicate that residents of the United States have wagered a combined total of $141 billion across more than 30 states where sports betting is allowed. Sportsbooks retained around 7 percent of each dollar wagered.

Last Minute Push

Tuesday saw the United States surpass the mark with revenue from the states of Michigan and Pennsylvania. But they are not the only states that contributed to the impressive development. New York, which has been a legalized sports betting market for just a few months, also had quite an impact.

The tax rate in New York is the highest in the nation at 51%, and the state does not allow businesses to deduct expenditures related to promotions from their overall income. Its internet presence and income, while only covering the first half of the year, accounted for 6.1% of the total in the United States, placing it seventh overall in both categories. However, tax collection of $309.7 million accounted for around 20.6% of the total revenue.

The Specifics

In as far as the revenue figures are concerned, here is a breakdown:

State	Handle	Revenue	Hold	Taxes/State Revenue
New Jersey	$28,564,955,152	$1,916,559,100	6.7%	$242,021,240
Nevada	$24,722,440,579	$1,401,664,000	5.67%	$94,612,320
Pennsylvania	$15,206,154,279	$1,133,552,892	7.5%	$270,174,562
Illinois	$13,026,519,538	$946,620,091	7.3%	$152,589,033
New York	$8,952,027,604	$648,779,713	7.2%	$311,340,328
Indiana	$8,345,447,975	$645,937,312	7.7%	$61,364,047
Colorado	$7,305,758,609	$458,089,933	6.3%	$20,632,264
Michigan	$6,575,617,477	$512,506,415	7.8%	$16,677,778
Virginia	$5,329,639,580	$464,956,563	8.7%	$33,675,796
Tennessee	$4,882,485,912	$420,974,224	8.6%	$70,113,474
Iowa	$4,029,436,770	$243,651,203	6.0%	$17,542,437
Arizona	$4,002,466,928	$292,804,891	7.3%	$12,090,848
Mississippi	$1,696,196,417	$189,904,121	11.2%	$22,788,494
West Virginia	$1,507,935,875	$117,285,971	7.8%	$11,728,597
New Hampshire	$1,395,381,722	$91,005,154	6.5%	$42,006,460
Rhode Island	$1,163,771,101	$99,758,337	8.6%	$50,876,752
Connecticut	$1,077,971,185	$80,913,963	7.5%	$7,329,674
Louisiana	$1,007,680,459	$84,733,003	8.4%	$12,607,137
Oregon	$832,296,355	$74,146,158	8.9%	$ –
Delaware	$495,982,309	$73,097,716	14.7%	$48,089,663
Washington DC	$391,330,081	$48,940,598	12.5%	$3,419,682
Maryland	$174,811,019	$19,653,632	11.2%	$2,883,063
Arkansas	$155,662,786	$17,792,276	11.4%	$2,531,234
Wyoming	$96,669,074	$8,954,653	9.3%	$326,459
Montana	$88,051,368	$11,888,057	13.5%	$ –
South Dakota	$5,824,230	$452,437	7.8%	$40,719
Total	$141,032,514,384	$10,004,622,413	7.1%	$1,507,462,061

Tomas Medon

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