The US iGaming and online sports betting markets are projected to generate $26.8 billion in revenue this year, with estimates reaching up to $41 billion by 2028, according to Vixio Regulatory Intelligence. Sports betting alone could bring in $17.2 billion in 2025. Currently, 31 states allow mobile betting, with eight more permitting it at land-based casinos. Missouri is set to launch mobile betting later this year.
Regulatory and Tax Challenges in 2025
While early industry growth focused on state legalization, 2025 is expected to bring more attention to regulatory restrictions and tax hikes. Several states, including Illinois, Maryland, and Ohio, are already considering increasing tax rates on sports betting operators to boost state revenues.
Limited Expansion for Sports Betting and iGaming
Alabama, California, Georgia, Minnesota, Mississippi, and Texas are being watched as potential new markets for sports betting. However, California and Texas are unlikely tо approve legalization this year, and Georgia has a history оf stalled efforts. iGaming remains legal іn only seven states, with nо clear signs оf major expansion іn 2025 due tо concerns over competition with land-based casinos and opposition from labor groups.
Rising Competition and New Betting Models
Vixio projects that online sports betting revenue could climb to nearly $25 billion by 2028, with New York and Florida as the largest markets. A bullish scenario could see $29 billion in revenue if more states legalize betting. Meanwhile, new forms of sports-related wagering, such as event contracts offered by Crypto.com and Kalshi, are gaining traction nationwide as alternatives to traditional sports betting.
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