Recent Developments in US Sports Betting
The US sports betting industry has been experiencing significant changes and updates in recent months. From tax reforms to new legislation, the industry is constantly evolving. Here are some of the latest developments:
Tax Reforms and Their Impact
On July 11, 2025, major US sportsbooks warned policymakers about the increasing taxes on their bottom lines, stating that these growing fees could threaten the legal industry’s long-term survival. This warning came after a proposal from the Senate to repeal the gambling tax penalty Congress recently passed as part of the “One Big Beautiful Bill Act.” Additionally, a proposed federal tax change in Donald Trump’s “One Big Beautiful Bill Act” would limit gamblers to deducting only 90% of losses against winnings.
New Legislation and Proposals
On July 10, 2025, a proposal from the Senate aimed to repeal the gambling tax penalty. Furthermore, on June 10, 2025, multiple states increased the tax burden for operators, raising concerns about whether US bettors will start to feel the impact. New York set a monthly revenue record in May, making it the most lucrative betting market in the US. The American Gaming Association reported that nearly three-quarters of US gambling states broke revenue records in 2024.
Election Betting and Regulatory Updates
On May 5, 2025, US election betting became more prominent after the Commodity Futures Trading Commission (CFTC) submitted a motion to drop its appeal against grey-area operators like Kalshi. The CFTC had previously raised concerns about sports prediction outcome markets, such as those offered by Kalshi. On February 27, 2025, the Indian Gaming Association urged the CFTC to prohibit sports prediction outcome markets.
State-by-State Updates
On April 24, 2025, a US sports betting and iGaming bill tracker was released, including the status of several non-legal states like Hawaii, Georgia, and Texas. On April 22, 2025, an outline of which states allow betting on the NFL Draft was provided. Some states, like Utah, Idaho, South Carolina, and Alaska, are unlikely to legalize sports betting anytime soon.
Industry Performance and Trends
On April 4, 2025, US gaming stocks dropped significantly amidst Donald Trump’s global tariffs. However, on February 19, 2025, US commercial gaming revenue reached a record $72 billion in 2024, up 7.5% from the previous year. A study by JAMA Internal Medicine found that searches for US gambling addiction services increased since PASPA legalized sports betting in 2018.
Regulatory Challenges and Controversies
On March 12, 2025, the trade dispute between the US and Canada disrupted the North American gaming market. A recent study revealed that the offshore sports betting market is twice the size of the legal market in the US. On February 18, 2025, a new study by JAMA Internal Medicine found that searches for US gambling addiction services increased since PASPA legalized sports betting in 2018.
Conclusion
The US sports betting industry is constantly evolving, with new developments and updates emerging regularly. From tax reforms to new legislation, the industry is facing various challenges and controversies. As the industry continues to grow and mature, it is essential to stay informed about the latest developments and trends. By understanding the current state of the industry, stakeholders can make informed decisions and navigate the complex regulatory landscape. Ultimately, the future of US sports betting will depend on the ability of regulators, operators, and other stakeholders to work together to create a safe, fair, and sustainable industry.
