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Exploring the Impact of Legalized Sports Betting in the States

Legislators tackle the economic gains and social concerns of online gambling.

By State Legislatures News Staff  |  March 5, 2025

As of 2025, sports betting is legal in 38 states and Washington, D.C., bringing significant financial benefits to these regions. In the 2023 fiscal year, states collected more than $1.8 billion in tax revenue from sports betting, according to a study by the Tax Foundation. And the American Gaming Association reports that legal sports gambling operations generated a record $10.92 billion in revenue in 2023.

States tax sports betting revenue at varying rates, from as low as 6.75% in Nevada and Iowa to as high as 51% in places like D.C., New Hampshire, New York and Rhode Island. However, with financial gains come societal concerns. The National Council on Problem Gambling estimates that around 2.5 million U.S. adults meet the criteria for severe problem gambling.

In this installment of “State of Play,” a bipartisan video series created by A Starting Point and NCSL, Georgia Rep. Marcus Wiedower (R) and Nevada Sen. Dina Neal (D) discuss the advantages, disadvantages and other topics related to legalized sports betting in the states.

Wiedower notes the importance of legal sports betting for consumer protection and local tax revenue, and believes having a safe, legal framework is crucial. Neal, meanwhile, says that while Nevada benefits financially, there is a need for programs to support individuals with gambling addictions. She emphasizes the importance of responsible regulation and a balanced tax rate to maximize economic benefits without exacerbating addiction issues.

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