US Sports Betting Reaches Record $166.94 Billion Handle in 2025

Data compiled for 2025 shows Americans placed a record $166.94 billion in legal sports wagers, marking an 11.0% increase from the prior year, while sportsbooks generated $16.96 billion in gross gaming revenue, a 22.8% rise year over year, and states collected $3.71 billion in taxes, up 32.4% from 2024 figures. Online platforms handled approximately 95% of the total handle, with FanDuel and DraftKings together accounting for roughly 75% of online gross gaming revenue, and the national hold rate climbed to 10.2% during the period.

Key Metrics from the 2025 Compilation

The report breaks down performance across handle, revenue, and tax collections while highlighting shifts in betting formats and operator concentration. Growth in gross gaming revenue outpaced handle expansion because the hold rate increased, which means sportsbooks retained a larger share of wagers on average. Parlays and in-play betting emerged as primary drivers behind the elevated hold rate, since both categories typically carry higher margins than traditional single-game straight bets. State-by-state data further reveals how regulatory maturity, market age, and product availability influenced local results across legal jurisdictions.

Online Dominance and Market Concentration

Online channels captured nearly all activity, reflecting consumer preference for mobile apps and desktop platforms over retail sportsbooks. FanDuel and DraftKings maintained their combined grip on three-quarters of online gross gaming revenue, a pattern consistent with earlier years yet reinforced by scale advantages in marketing, data, and user acquisition. Smaller operators competed in niche segments, yet the two leaders continued to set pricing and promotional benchmarks that shaped the broader market. The 10.2% national hold rate reflected these dynamics, as increased parlay volume and live betting options lifted overall retention without requiring proportional growth in total handle.

Growth Drivers Behind the Numbers

Parlays and in-play betting receive particular attention in the analysis because both formats expanded faster than the overall market. Bettors who combined multiple outcomes into single wagers accepted lower payout probabilities in exchange for higher potential returns, which raised the effective hold percentage for operators. In-play betting allowed wagers after events began, generating additional volume during live games and matches while also supporting higher margins through rapid odds adjustments. These product features operated alongside broader market expansion, including new state launches and increased advertising spend, yet the report isolates their contribution to revenue growth separate from simple handle increases.

State Tax Collections and Regulatory Context

States collected $3.71 billion in taxes, a 32.4% jump that exceeded both handle and revenue growth rates because several jurisdictions adjusted tax structures or benefited from higher hold percentages on the same wager volume. Tax receipts varied widely depending on whether states applied flat rates on handle or revenue-based models, and whether they included additional fees for licensing or integrity programs. The compilation includes pending markets that have passed legislation but not yet launched, showing projected tax contributions once those states activate online and retail sportsbooks. Observers tracking the Commercial Gaming Revenue Tracker note that these figures align with ongoing expansion patterns documented across commercial gaming sectors.

State-by-State Variations and Pending Markets

Breakdowns by state illustrate how market age, population size, and product offerings produced divergent outcomes. Older markets with established online access posted steady gains, while newer entrants experienced rapid initial spikes followed by stabilization. Pending markets identified in the report represent states where legislation has advanced yet operational launch remains months or years away, creating a pipeline for future handle and tax growth. Analysts examining these jurisdictions factor in expected hold rates and operator concentration when modeling potential contributions once betting goes live.

Conclusion

The 2025 figures establish new benchmarks for legal sports wagering in the United States, driven by online volume, concentrated operator market share, and elevated hold rates from parlay and in-play products. Tax collections rose even faster than revenue because of structural differences across states and the compounding effect of higher retention. With additional markets still pending launch, the data set provides a baseline for projecting continued expansion in handle, gross gaming revenue, and state receipts through subsequent reporting periods.