Once Nevada-Only, Now Everywhere: Sports Betting's Explosive Growth
What was once exclusive to Nevada has now expanded dramatically: 39 states, and Washington, D.C., have legalized sports betting in some form. The industry has surged nationwide, generating $2.71 billion in state tax revenue in 2025. Revenue has climbed steadily each year since consistent tracking began in 2021, fueled by seasonal peaks, driven by major events like the Super Bowl and March Madness.
In Nevada, the pioneer of legal sports betting, the industry remains a cornerstone of the economy, particularly in Reno and Las Vegas. Operators generated over $600 million in total sports betting revenue in 2025, resulting in approximately $40 million in state tax payments. This reflects Nevada's longstanding 6.75% tax rate on gross gaming revenue, one of the lowest nationwide, which supports a mature market blending retail sportsbooks and mobile betting that requires in-person registration.
Nevada's low tax rate and established framework contrast with higher rates in newer markets, allowing the state to maintain stability amid national expansion. Politically, the industry faces ongoing scrutiny and advocacy. Nevada lawmakers and gaming stakeholders actively push federal reforms, including efforts to reverse changes limiting gambling loss deductions for tax purposes and to curb unlicensed prediction markets that could undercut regulated sports betting. Bipartisan bills from Nevada's congressional delegation, such as those led by Rep. Dina Titus (D) and Sens. Catherine Cortez (D) Masto and Jacky Rosen (D), highlight the state's commitment to protecting its gaming revenue streams and regulatory authority.
Sports betting was once tightly restricted nationwide. In 1992, Congress enacted the Professional and Amateur Sports Protection Act (PASPA), which banned most states from authorizing it—except for four grandfathered states (Nevada, Delaware, Montana, and Oregon) that already had pre-existing schemes.
In 2018, the U.S. Supreme Court struck down PASPA in Murphy v. NCAA, declaring it unconstitutional and granting states the authority to legalize, regulate, or prohibit sports betting on their own.
Since then, many states have moved to legalize it, turning the industry into a major revenue generator. New York led the nation in sports betting tax revenue for 2025 with $1.32 billion, the only state to surpass $1 billion. Ten other states generated between $100 million and $500 million each: Illinois, Ohio, Pennsylvania, Massachusetts, Maryland, New Jersey, North Carolina, Kentucky, Virginia, and Tennessee. South Dakota collected the least at $118,000.
The national surge in sports betting highlights its growing importance as a source of state revenue, yet Nevada maintains a commanding and resilient advantage through its pioneering legacy, one of the lowest tax rates in the industry, and steadfast political advocacy to safeguard its gaming dominance in an increasingly competitive landscape.
