Nobody expected such a quick change in sports betting. When the Supreme Court opened things up in 2018, experts put a 10-year period for the US sports betting market to grow steadily. Fast forward eight years, and now we find ourselves in a country where wagering is available to most of the population, sportsbooks generate billions every month, and the conversation is no longer “Is this going to work?” but rather “How do we optimize this thing?” 2026 data shows an industry that developed more quickly than anyone thought possible and now faces the struggles of maturity rather than the youthful growth of its early days.
How the US Sports Betting Market Got Here
Sports betting was legalized in 2018 with the Supreme Court ruling in Murphy v. NCAA. The court decided that the federal prohibition on sports betting is no longer valid and left the decision to every state. Fifty states – fifty individual opportunities to build sports betting from the ground up.
The first moves were almost instant. New Jersey popped the cork and launched within weeks. It wasn’t something spectacular, but it worked. More importantly, they introduced the mobile platform that still reigns to this day. Pennsylvania, West Virginia, and Mississippi followed before the end of 2018, and momentum continued to build through 2019 and 2020. When the pandemic hit in 2020, skeptics were quick to pun the red cross over mobile sports betting, but they could not have been more wrong. Yes, retail betting collapses, but forced isolation actually accelerated mobile adoption for demographics that would’ve needed years to get there. By the time things settled down and sports games resumed, the infrastructure for mobile betting was in place.
The real transformation came a year later when New York showed what a massive sports audience and mobile betting can do. Handle figures went through the roof, making more money than multiple states combined, and the battle for new customers sparked a promotional war that set the standard for sports fans to this day.
|
Period |
What Happened |
| 2018 |
PASPA overturned. New Jersey, Pennsylvania, West Virginia, Mississippi launch |
| 2019-2020 | Expansion across Northeast and Mid-Atlantic states. |
| 2021-2022 |
Major market like New York, Arizona, Maryland launch. |
| 2023-2024 |
Promotional spending begins moderating. Hold percentages normalize across mature markets |
| 2025-2026 |
Market reaches structural maturity. Revenue patterns stabilize. Remaining state gaps narrow |
Understanding the Numbers – Handle vs. Revenue vs. Hold
Sports betting data can be very misleading with all the numbers, terms, and vague explanations. The same headline can mean totally different things, so let’s clarify what each term means.
Handle
Handle is the total amount wagered. This is the total income for every platform, and every bet counts, regardless of whether it wins or loses. It is the gross number – the total, the biggest number in any report. A state reporting a $1 billion handle per month processed exactly $1 billion in bets. What part of it actually keeps is another story.
Gross Gaming Revenue (GGR)
GGR is what operators care about the most – it shows the number they keep after paying out winning bets. GGR equals handle minus payouts. This is the number that the state taxes, and it reflects how operators measure their profitability. A month with $1 billion in handle could produce $80 or $800 million in GGR, depending on how the games went or how big the local taxes are.
Hold Percentage
Hold represents GGR as a percentage of the whole handle. Operators look at this as the effective margin. Hold always fluctuates, based on the outcomes.
|
Metric |
Typical Range |
| Monthly Hold % | 6% – 12% |
| Annual Average Hold % | 7% – 9% |
|
Parlay Hold % |
15% – 25% |
| Live Betting Hold % |
5% – 8% |
Tax Revenue
As we mentioned, states tax operators on their GGR, not the handle, which is why that big handle number doesn’t represent how much money will go into public funds. Tax rates vary from single digits to over 50% (like in New York).
National Handle Overview – 2026 Year to Date
The numbers from 2026 show that the market has taken off. Growth’s still here, but it’s calibrated now. There are no crazy yo-yo moves like in the early days. What’s most apparent in 2026 is that there is a seasonal structure.
Overall Volume
Through Q1 2026, national monthly handle has run consistently above prior year figures. Some of that is coming from new states going online with incremental volume, and some of it is organic growth. January provided the strongest single month, as it always does. NFL playoffs and the Super Bowl gather betting volume like nothing else on the calendar. February declined sharply, which is normal for the post-Super Bowl period – it is the slowest part of the year. March comes roaring back on NCAA Tournament action, which is one of the most reliable handle drivers despite producing brutal outcomes for operators.
Seasonal Patterns
The seasonal rhythm of the US sports betting market is structured and can predict what operators can expect in betting volume in each part of the year. now well established enough to be predictable in broad strokes:
|
Month |
Driver |
| January |
NFL Playoffs, Super Bowl |
| February | Super Bowl tail, NBA/NHL |
| March | NCAA Tournament, NBA stretch run |
| April | MLB opening, NBA/NHL playoffs begin |
| May – June | NBA Finals, Stanley Cup, MLB |
| July – August | MLB only, college football preview |
| September | NFL kickoff, college football |
| October – December |
Full NFL, NBA/NHL tip-off, college football |
What’s Driving Growth in 2026
Two trends are what push the market in 2026. First, combined betting is continuing to grow as a percentage of total handle. Players are embracing the idea of betting multiple legs, which have a better hold and greater handle per session. Same-game parlays have gone from being a novelty to routine in most states, and you can see the impact of this on both hold and number in the handle structure.
Second, live betting. In-play wagering now accounts for a strong handle on major events, and an infrastructure with faster odds updates and more mid-game markets has finally caught up to what Europe has built and offered for years.
The Major Markets
These six states are making the bulk of the national handle. They are not the biggest in population or territory. The decisions around taxes, mobile access, and licensing have dictated how the rest are forced to operate.
New York
New York is the leader by a mile. Their mobile betting launched in January 2022, and the handle stats have been setting new records since then. It is driven by a huge population and one of the most passionate sports fan bases. The tradeoff? Tax rate of 51% on GGR. It is the highest in any major market. This pushed operators to shrink their margins to the maximum. It actually got to the point that profitability in New York is sometimes questionable despite the player volume. But it is down to policy choice: maximum public revenue in the short term or sustainable investment.
New Jersey
New Jersey was the state that started the changes and is now one of the biggest and healthiest markets. The handle has settled down compared to the early growth years, when numbers were outrageous, which is something to be expected in a market like this. Revenue and tax generation are still consistent, and there are no major changes to be expected here.
Pennsylvania
Pennsylvania markets run 36% on GGR from online sports betting. Yes, it is high, but far from New York. Handle has grown steadily, benefiting from the large population and adaptation to mobile betting.
Illinois
Illinois has taken longer than expected to reach its potential following a slow rollout. The speed bump was a requirement for in-person registration (subsequently removed). Since the state mobile registration went live, the market has turned into one of the top five-handling states. Chicago’s sports market, with the Bears, Cubs, White Sox, Bulls, and Blackhawks, provides year-round betting options, which keeps volumes stable even during the football off-season months.
Michigan
Michigan kicked off online sports betting and casino together, creating a cross-sell advantage over most of the other states. Handle growth has been steady, and a sensible tax structure means operators invest more into their platforms.
Colorado
Colorado has one of the lowest tax rates in the nation (10%), making it an attractive state for operators and keeping competition wide. Handle figures are pretty good (relative to population). Partly because of the demographics, and partly because the low state taxes allow operators to invest in better platforms.
The Emerging Markets
These states are in a different phase compared to the ones we mentioned above. Not so much early movers, as they have some years of data behind them, but recent launches are still figuring out their paths.
Ohio
Ohio launched in January 2023 and surprised analysts with handle figures. When combining a large population with a passionate sports culture (Cleveland, Cincinnati, and Columbus all carry serious fanbases) and an aggressive operator, it meant a faster ramp. Initial promotional spending was aggressive, inflating early numbers somewhat, but underlying volume held up better than anticipated when promotions settled down.
Maryland
When Maryland launched sports betting, it was … messy. Retail launched over a year before mobile platforms, and the early numbers were below expected because of that. Once they turned on mobile, numbers grew, but never reached the levels Maryland’s population would lead you to expect. Overall direction is good, but the ceiling remains a question mark.
Massachusetts
Massachusetts launched mobile betting in March 2023 and quickly generated volume. No surprise there, since it is one of the most sports-dedicated states in the country. Boston’s favorites: Patriots, Celtics, Red Sox, and Bruins, create many of the year’s options for betting on all four major leagues at the same time. Handle is consistently growing each quarter, and the trend shows that Massachusetts will soon join the big six states.
Kansas
Kansas might be smaller than other states, but it has a secret weapon to fight the competition – low regulatory burdens and even lower taxes. They have resulted in figures above population-based expectations. This is useful data. It shows that the tax and regulatory environment drives market development as much as size and population alone.
Kentucky
Kentucky timed its launch to perfection – September 2023, right at NFL kickoff. A great strategic choice that led to an instant volume spike rather than starting during a quiet period in the sports calendar. The early numbers were unnaturally high due to initial euphoria, and we don’t yet know the trajectory, but the initial data show a market that wants to be among the leaders.
Online vs. Retail – Where the Money Actually Moves
Numbers and charts settled this debate long ago. Betting on mobile devices dominates every mtric known to man, and the gap gets bigger with each new report that comes out. The market develops, so do the players. What’s worth analyzing in 2026 is not whether mobile leads – it does, decisively – but where retail still makes sense, and why.
The Mobile Dominance Picture
Players love to bet on their mobile phones. It is faster, easier to do, not to mention – you can do it wherever you are. In established jurisdictions with free mobile access, online bets sometimes reach 95% of the total handle. New Jersey has been over 90% for several years now. Despite the heavy tax environment, New York has similar ratios. The product on mobile versions is better with live betting interfaces, same-game parlay builders, and great cash-out functionality. These mobile features cannot be duplicated at the retail windows. Let’s not forget another major factor – demographics. The post-2018 player is much younger and doesn’t leave the house without a phone or a tablet in the pocket.
Where Retail Still Works
Retail betting is not dead by any means; it is still relevant, and a few specific details keep it above board. At least for now.
- Casino-native markets – In states like New Jersey, sportsbooks are located inside casino properties, so they benefit from the foot traffic. A casino lover may stop to make a sports bet just for the sake of it, even if sports are not their thing. Players already on the floor are typically more willing to make a bet they would often otherwise skip at home.
- Sports locations – Several states allow sportsbooks located in venues like stadiums and arenas. The handle spikes during events, contributing volume that wouldn’t exist otherwise.
- States with restricted mobile access – Some states still press the brakes on mobile betting. They may even require in-person registration. All of this limits online operators, as only casino-tethered apps are allowed. In these markets, retail’s share is artificially increased.
Tax Revenue and Public Finance – What States Are Actually Collecting
Handle numbers always land on the headlines, but legislators care only about the tax revenue. The relationship between the two is less straightforward than most reports suggest.
The Basic Math
States tax GGR, not the whole handle. A state with a $500 million monthly handle at 8% hold generates $40 million GGR. Apply a 15% tax rate, and you get $6 million for the state every month. When you do the math for a year, it is still a lot of money, but nowhere near the full handle. Different tax rates lead to very different results in terms of public finance, even if the handle is the same. The 51% tax on GGR collected in New York generates more than five times the revenue that the same GGR would generate in Colorado’s 10%. This is an example of policy choice between maximizing advanced public revenue and structuring legislation that will attract the investment operator demands and then develop the market.
How States Are Allocating the Revenue
- Education funding – As with many gaming products, several states link sports betting revenue to fund K-12 education. In Ohio, for example, portions are allocated to its foundation funding formula.
- Problem gambling programs – Most states impose some percentage for treatment and prevention. The mandate is found in nearly all jurisdictions, and amounts vary widely.
- General fund contributions – Some jurisdictions directly allocate the GGR tax into state’s general funds, with no designation. It gives the legislature flexibility, but players don’t know how these funds are spent.
- Infrastructure and public works – A handful of states tied sports betting revenue to specific capital projects, creating visible public benefits in parks, streets, or schools.
Final Words
The US sports betting market has settled into something more honest and predictable than its early years, which were … chaotic. Handle figures reflect true demand more than promotions. The seasonal peaks and valleys are predictable, and states’ approaches with different tax rates, mobile access, and licensing models have produced helpful data. It settles the question of what works. States that decided on a sustainable market, even if that meant not squeezing the last drop of juice from their revenue, have a healthier field than states that chose the other route, and sportsbooks have to deal with thinner margins and fewer competitors.