The State of the US Sports Betting Market in 2026

The US sports betting market enters 2026 with sustained momentum. What began as a fragmented, state-by-state activity has evolved into one of the fastest-growing regulated digital commerce sectors in the country. With more states approving online wagering and more Americans betting than ever, the market is reshaping competition, marketing economics, and technology investment for sportsbook operators.

Growth, however, is no longer frictionless. Regulatory scrutiny is increasing, digital advertising costs continue to rise, and traffic quality has become a defining challenge for acquisition teams. As budgets scale, many operators are being forced to reassess how they protect spend and optimisation data, making click fraud detection software a critical part of modern sportsbook acquisition strategies.

For operators competing at scale, understanding how the US sports betting market is evolving in 2026 is essential for protecting margins and sustaining growth.

This blog examines the size of the US sports betting market, revenue dynamics, legalisation by state, participation trends, and the strategic pressures shaping sportsbook performance.

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What Is Driving Growth in the US Sports Betting Market?

Expansion of Sports Betting Legalisation

Legalisation remains the strongest growth driver. Since the repeal of PASPA in 2018, more than two thirds of US states have legalised sports betting in some form. Each new state launch triggers aggressive competition as operators race to acquire users, secure brand visibility, and establish early market share.

As regulatory frameworks mature, states increasingly favour online wagering due to stronger tax yields, broader participation, and improved oversight compared with retail-only models.

Mobile and Online Betting Adoption

Mobile betting dominates the US sports betting market. In fully regulated states, the majority of wagers are now placed online, driven by convenience, live betting, and personalised experiences. As sportsbook apps converge on similar features, digital channels continue to absorb share from retail sportsbooks.

New State Market Openings and Tax Incentives

States are increasingly motivated by the tax revenue generated through regulated sportsbooks. Markets that entered regulation in 2023 and 2024, including Kentucky, Nebraska, and Ohio, collectively generated more than USD 1.49 billion in sports betting revenue in their first full year. States preparing to launch in 2026 are expected to follow similar early-growth patterns.

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Where Sports Betting Is Legal in the United States

States With Full Legalisation

Most states now permit online sports betting, retail betting, or both. These markets typically feature mature competition, high mobile penetration, and established licensing frameworks.

States With Retail-Only Betting

A smaller group of states continue to restrict wagering to retail sportsbooks only, including Montana, Nebraska, and South Dakota. These states often cite responsible gambling considerations or regulatory readiness as reasons for delaying online expansion.

States Reviewing Legislation

Texas, South Carolina, and Oklahoma remain the most closely watched states moving into 2026. Active bills and ballot initiatives could materially reshape the national market due to population size and strong sports engagement.

States With Full Prohibition

Twelve states still prohibit sports betting entirely, including California, Georgia, Hawaii, Idaho, and Utah. Legislative resistance, political opposition, and competing interests continue to delay progress in these markets.

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US Sports Betting Market Size and Revenue Trends

US Sports Betting Market Size

The US sports betting market has accelerated sharply. Americans are projected to wager between USD 160 billion and USD 170 billion legally in 2025 across the 38 states and Washington, D.C. where sports betting is regulated. This estimated market size reflects wider legal access, record engagement around major sporting events, and continued migration toward mobile wagering.

With additional states preparing to launch online betting, the projected market size is expected to increase further in 2026.

Sports Betting Industry Revenue

Revenue growth continues to outpace wagering growth. Industry forecasts indicate that total US sports betting revenue will exceed USD 15 billion by 2027, driven by higher hold percentages, increased in-play betting, and more efficient monetisation of mobile users.

Changes in Hold Percentage

The national hold percentage increased from 8.1 percent in 2022 to 9.1 percent in 2023. This metric represents the proportion of wagers retained by sportsbooks and directly influences operator profitability in regulated markets.

Contribution From Newly Launched States

Newly regulated states are contributing meaningful revenue faster than expected. Ohio alone generated USD 936.6 million within months of launch, becoming one of the largest US sports betting markets almost immediately.

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What Are the Trends in the US Sports Betting Market?

Mobile and Online User Growth

Online sports betting revenue is forecast to reach USD 17.07 billion by 2029. User penetration is expected to rise from 11 percent in 2024 to 15.6 percent by 2029, representing more than 54 million active bettors nationwide.

Growth in eSports Betting

The US eSports betting market is projected to generate USD 1.1 billion in revenue by 2028. With an average revenue per user of USD 53.80, eSports continues to attract younger, digital-native audiences and maintain year-round engagement.

Blockchain and Crypto-Led Wagering Innovation

Wyoming’s adoption of blockchain-based wagering has accelerated interest in crypto-funded accounts, digital wallets, and peer-to-peer betting models. Faster withdrawals and lower transaction costs are driving experimentation across regulated markets.

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The Most Popular Sports to Bet on in the US

NFL Dominance

The NFL remains the largest driver of betting activity. More than 60 percent of US bettors place wagers on football, with the Super Bowl consistently setting new betting records.

NBA, MLB, and Other Major Leagues

The NBA attracts approximately 58 percent of bettors, while Major League Baseball accounts for 53 percent. Boxing, UFC, horse racing, hockey, and NASCAR generate strong betting spikes around marquee events.

Emerging Categories Including eSports

Around 23 percent of bettors now wager on eSports, making it one of the fastest-growing betting categories in the US sports betting market.

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In-Person vs Online Betting in the US Market

Participation Patterns

Online betting continues to outpace in-person wagering due to mobile accessibility and 24-hour availability.

Differences in Experience and Accessibility

Retail sportsbooks offer social engagement and event-based experiences, while online platforms deliver broader markets, faster betting, and personalised journeys.

Market Implications for Operators

As digital channels dominate, sportsbooks must optimise conversion paths, reduce friction, and maintain strong traffic quality to remain competitive.

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How Sports Betting Operators Can Win in a High-Growth Market

Strengthening Digital Acquisition

Operators face rising CPAs and inflated CPCs in competitive states. Efficient growth depends on clean data, accurate attribution, and real-time visibility across channels.

As competition intensifies, execution matters. These PPC strategies for sports betting campaigns outline how operators can improve efficiency while managing rising CPCs.

Combating Invalid Traffic to Improve ROI

Bots, emulators, duplicate clickers, and non-incremental users continue to distort acquisition performance across the US sports betting market. These issues inflate CPCs, corrupt optimisation signals, and reduce confidence in attribution models. Real-time protection is essential to prevent wasted spend before it impacts performance.

The Role of Measurement and Estimation

Before prevention, operators need visibility. Tools such as an invalid traffic calculator allow sportsbooks to estimate potential budget loss based on spend, click volume, and conversion behaviour. This creates a clear baseline for understanding exposure before scaling campaigns.

Scaling Efficiently in Newly Opened Markets

New state launches attract aggressive competition. Operators that identify and suppress invalid traffic early gain cleaner data, lower CPAs, and faster insight into incremental conversions. This positions brands to capture market share during the most valuable acquisition windows.

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FAQ & Key Takeaways

1. Which states are most likely to legalise online sports betting next?

Texas, South Carolina, and Oklahoma remain the highest-potential states under active review. These markets have growing political interest in regulation and represent major population centres that would significantly influence national market share. Several smaller states are also exploring limited retail frameworks that could expand to mobile betting in future.

2. How big will the US sports betting market be by 2027?

Revenue is forecast to exceed USD 15 billion by 2027. Growth will be driven by additional state launches, rising mobile penetration, and increased betting volume during major sporting events. Markets such as New York, New Jersey, Illinois, Pennsylvania, and Ohio will continue to lead national revenue.

3. What sports generate the highest betting activity in the US?

The NFL remains the strongest driver of betting activity, followed by the NBA and MLB. Sports such as boxing, UFC, horse racing, hockey, and NASCAR contribute additional volume around key events. eSports is a fast-growing category among digital-native users.

4. Why has online sports betting overtaken in-person betting?

Online betting offers ease of access, instant wagering, broader market options, and personalised experiences through mobile apps. Younger bettors prefer mobile platforms, and operators have invested heavily in live betting and fast payouts, which further accelerate digital adoption.

5. How does invalid traffic affect sports betting advertising performance?

Invalid traffic inflates CPCs, weakens optimisation signals, and distorts acquisition metrics. Bots, click farms, duplicate clickers, and emulators reduce data accuracy, making it difficult for sportsbooks to measure true ROI or scale campaigns in competitive states.

6. How can operators reduce invalid traffic across Google Ads and Meta?

Performance teams rely on real-time verification, click-level filtering, audience cleansing, and rules-based detection to identify non-genuine clicks. Removing invalid traffic early prevents wasted spend, protects optimisation cycles, and improves conversion quality across acquisition channels.

7. What should sportsbooks prioritise when launching in a newly regulated state?

Speed and data clarity are essential. New entrants should focus on clean acquisition data, accurate attribution, effective promotional strategy, and early suppression of invalid traffic. These steps help operators capture high-value players during the most competitive period of a new market launch.

8. Is eSports betting a meaningful growth opportunity for US operators?

Yes. eSports betting continues to rise due to strong engagement from younger, digitally native audiences. While ARPU is typically lower than major sports, bet frequency and year-round events make eSports an attractive channel for operators expanding their user base.