According to Vixio, the US internet sports betting market could generate $17.2 billion in gross revenue this year, with projections rising to $24.8 billion to $29 billion by 2028, depending on market trends. Currently, mobile sports betting is available in 31 states, with eight others offering in-person wagering at land-based casinos. Missouri is set to join the mobile betting scene later this year.
Since the 2018 Supreme Court decision overturning PASPA, the focus has shifted from states legalizing mobile sports betting to regulatory and tax implications. Several states are now exploring tax hikes to increase government revenue.
“Looking ahead, the focus in 2025 will likely be on potential regulatory restrictions at state and federal levels,” said James Kilsby, Vixio’s chief analyst. “We’re also expecting tax increases to be a major theme, with several states already proposing higher rates this year.”
For instance, Illinois recently introduced a graduated tax system for sports betting operators, while states like Maryland and Ohio are considering similar measures.
Limited Expansion for iGaming and Sports Betting in 2025
In terms of new states adopting sports betting in 2025, Alabama, California, Georgia, Minnesota, Mississippi, and Texas are the ones to watch. However, states like California, Texas, and Georgia are considered long shots due to ongoing challenges.
iGaming remains even more restricted, with only seven states—Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia—currently allowing online gaming. While up to ten states may explore iGaming and sports betting legislation in 2025, Vixio predicts none are likely to pass a bill due to concerns over cannibalizing land-based casinos and resistance from labor groups.
Sportsbook Operators Face Rising Competition
Vixio’s base case projects gross gaming revenue from online sports betting to reach nearly $25 billion by 2028, with New York leading the market and Florida in second place. The firm’s bull case scenario forecasts $29 billion in revenue, assuming states like Georgia, Mississippi, Oklahoma, and Texas approve sports betting.
Adding to the competitive landscape is the emergence of sports event contracts. Platforms like Crypto.com and Kalshi now allow users in all 50 states to trade event outcomes as derivatives rather than traditional sports bets.
Crypto.com recently launched “sports event trading,” enabling customers to predict outcomes of major events like the 2025 Super Bowl. These contracts are regulated by the Commodity Futures Trading Commission (CFTC) rather than state gaming authorities, introducing a new dynamic to the industry.
As the market evolves, operators must navigate increasing competition, regulatory hurdles, and tax changes while seizing opportunities for growth.
