A snapshot of a banner year for sports betting. By Katherine A. Baker & Nicolas Techiera

Last year saw a major increase in sports betting, totaling a record $150 billion across the United States.[1] From this 26 percent overall increase in wagers since 2023, state and local governments collected about $2.9 billion in taxes, while the federal government collected over $375 million.[2]At the top, more than $22.5 billion was wagered in New York in 2024 – nearly doubling Illinois, the next closest state, at $13.9 billion.[3] Two new states entered the sports betting market in 2024, with several others making strides towards legalization. The year also saw an increase in regulatory restrictions across the country, and an emerging competitor in the sports betting arena – sports-themed prediction markets.

New sports betting states

In 2024, North Carolina and Vermont became the two most recent states to officially legalize and launch some form of sports betting. In North Carolina, Gov. Roy Cooper signed House Bill 347 into law on June 14, 2023, to legalize and regulate online sports betting (OSB).

[4] On March 11, 2024, North Carolina launched OSB, just in time for the 2024 NCAA basketball March Madness tournament. Similarly, Vermont Gov. Phil Scott signed an OSB bill into law on June 14, 2023. [5] Vermont then launched sports betting on January 11, 2024. Even in the short time they have allowed sports betting, North Carolina and Vermont derived $583.6 million and $21.9 million in total gross revenue, respectively, in 2024. [6] The next state slated to join the sports betting industry is Missouri. During a November 5, 2024, ballot initiative, voters approved a sports betting bill – House Bill 2331. [7] Sports betting is set to go live by December 1, 2025, with some predicting that it could be much sooner.

The District of Columbia, where sports betting went live in 2019, saw an expansion in available OSB platforms last year. Until 2024, only GamebetDC was authorized to operate OSB, due to a five-year exclusive deal with the D.C. Lottery. [8] In an attempt to generate more revenue, FanDuel took over as D.C.’s official online sportsbook in July 2024. [9] With additional sportsbooks like Caesars, BetMGM and DraftKings already or soon-to-be operational alongside FanDuel, the nation’s capital is poised for a record sports betting year. [10] Barring any setbacks in Missouri, sports betting remains illegal in only 11 other states – but several are poised to legalize it in the foreseeable future.

katherine a. baker

Image: Katherine A. Baker

While sports betting legislation efforts in Alabama, Minnesota and Georgia looked promising in 2024, they ultimately fell short.

[11] Notably, the inclusion of OSB was cut from a proposed Alabama bill early in 2024. [12] Minnesota faced pushback in finalizing its legislation but is primed to revamp those efforts in 2025.

Although there is currently no legislation pending in California, Oklahoma, South Carolina or Texas – nor was there a very strong push to legalize sports betting in 2024 – historically the motivation has been present. Early indications of whether these states will continue their efforts to legalize sports betting in 2025 are optimistic. [13] For the remaining states of Alaska, Hawaii, Idaho and Utah, 2024 was unremarkable as these states firmly maintained their anti-gambling positions. Nonetheless, these states could still pursue legalization in the future, despite a lack of notable progress in prior years.

Sports betting regulatory trends

With an increase in sports betting activity and market participants across the board, it is unsurprising that 2024 also witnessed a trend in tightening regulatory restrictions. Some changes were spurred by concerns around problem gambling and consumer protection, while others aimed to capitalize on the economic-development opportunities that come with an expanded market.
For instance, New York Gov. Kathy Hochul signed a new bill into law that placed additional responsible-gaming restrictions on advertisements by sports betting operators in New York.

[14] Specifically, the new amendments require sports betting operators to “clearly and conspicuously state a problem gambling hotline number” on all advertisements.[15] Also notable, after a series of public roundtables, Massachusetts became the first U.S. sports betting market to investigate the impact of sports betting operators limiting practices on bettors.[16] The Massachusetts Gaming Commission intends to use the information gathered to propose new regulations in response to recent player complaints, such as mandatory disclosures from sports betting operators when they are limiting a player.[17] While Massachusetts is known for its strong consumer-protection measure, other states may follow suit.

Moreover, in 2024 several state legislatures sought to increase their tax rates on sports betting. For example, Ohio increased its rate from 10 percent to 20 percent, starting in the 2023-24 fiscal year.[18] Likewise, Illinois shifted from a flat, 15 percent rate to a tiered rate between 20 percent and 40 percent.[19] Louisiana, Indiana and Massachusetts are considering increasing their tax rates on sports betting as well.[20] In the same vein, Maryland has expressed interest in passing legislation to remove promotional deductions[21] – an approach already in place in Virginia, Colorado and Louisiana.

At the federal level, 2024 saw the first congressional hearing on sports betting and responsible gaming[22] on the heels of Rep. Paul Tonko and Sen. Richard Blumenthal’s introduction of the Supporting Affordability & Fairness with Every Bet Act (the SAFE Bet Act),[23] which sought to impose a general ban on sports betting nationwide unless states agreed to adhere to stricter responsible-gambling measures.[24] Specifically, states that have legalized sports betting had to submit an application to the attorney general to administer a sports betting program that could only be approved if the state’s program met the act’s minimum standards.[25] In particular, the act proposed restrictions on sports betting advertising between 8 a.m. and 10 p.m., and during live sports events as these are the mostly likely times minors could be exposed to the sports betting world.[26] The act also sought to limit the amount wagered and the number of wagers for a given bettor.[27] The trade association for the gaming industry, the American Gaming Association, voiced strong opposition.[28] While the SAFE Bet Act was not adopted in 2024, the idea that the federal government could impose standardized rules for sports betting and perhaps other forms of gaming would be unsettling to an industry whose regulation has historically been left to the states. In response, we may see states tighten their responsible-gaming regulation of sports betting to dispel the notion that federal government intervention is needed.

nicolas techiera

Image: Nicolas Techiera

Sports-themed prediction markets

A review of sports betting in 2024 would be incomplete without mentioning a new challenger to the industry: sports-themed prediction markets. These are exchange-traded markets regulated in the U.S. by the Commodities Futures Trading Commission (CFTC) that allow individuals to buy and sell shares on the outcome of a future event.[29] Generally, users answer “yes” or “no” to questions predicting outcomes of events anywhere from the performance of a film at the box office to the weather to election outcomes.

These platforms also offer futures contracts on sporting events. Market leaders like Kalshi, Polymarket and Robinhood have been taking advantage of the demand for sports betting but encountered legal challenges.[30] Given the strict regulatory landscape that has built up around sports betting since the repeal of Professional & Amateur Sports Protection Act (PASPA), the combination of prediction markets and sports has unsurprisingly sparked a debate: Is this unregulated sports betting?

Some jurisdictions outside the U.S., such as Taiwan, France and Singapore, have attempted to block access to prediction markets, considering them a form of illegal gambling.[31] Within the U.S., the CFTC under the Biden administration took a broad view of the term “gaming” in its special rule on events contracts (the special rule).[32] While not specific to sports-themed predictions, Kalshi’s suit against the CFTC for ordering it to stop offering futures contracts on U.S. congressional elections results is a critical marker for the legal viability of using prediction markets to “bet” on sports. A U.S. District Court for the District of Columbia decision issued on September 12, 2024, held that the CFTC exceeded its authority by interpreting the special rule to classify election contracts as “gaming” and “activity that is unlawful under any state or Federal law …”[33] The D.C. Circuit will decide whether to uphold the district court’s view that “gaming” must refer to the “act of playing a game” or “playing games for stakes,” or adopt the CFTC’s position that prediction markets like Kalshi’s operate as a form of gaming and involve unlawful activity, therefore violating the special rule.[34] Toward the end of 2024, in partnership with Kalshi, Robinhood announced it would offer futures trading on the Super Bowl winner.[35] Almost immediately after the announcement, the CFTC ordered it to cut off access to such contracts due to concerns over legality.[36] At the tail end of the Biden administration, the CFTC issued a similar cease-and-desist order to another prediction-market operator and began inquiring into others.

With the new administration and its changes in the CFTC, however, the outlook is favorable for the expansion of prediction markets into the sports world and beyond. Acting CFTC Chair Caroline Pham, installed by President Trump, has been vocal about her disfavor of the CFTC’s campaign against prediction markets.[37] The president’s nominee for chair, Brian Quintenz, is also a favorable draw for prediction markets given he is head of policy for venture capital firm Andreessen Horowitz’s (a16z) crypto fund. He previously served on Crypto.com’s advisory council and is known for his pro-innovation stance.[38] The CFTC is holding a roundtable in the first quarter to “develop a robust administrative record with studies, data, expert reports, and public input from a wide variety of stakeholder groups to inform the Commission’s approach to regulation and oversight of prediction markets, including sports-related event contracts …”[39]
The legal landscape around prediction markets is likely to remain unsettled for the foreseeable future. The rise of sports prediction markets alongside the expansion of regulated sports betting will be one of the most fascinating trends to watch in 2025.

Conclusion

Sports betting saw major expansion in 2024 with more people playing it, more states legalizing and regulating it, and more companies pushing its limits. Going forward, the sports betting industry should expect to enjoy continued customer demand while navigating increased regulation and sources of competition.
Katherine Baker, a Boston-based partner at Nelson Mullins Riley & Scarborough LLP and chair of the firm’s Gaming Industry Group, assists casino gaming, igaming, sports betting and fantasy sports operators, vendors, and entrepreneurs in navigating the state and federal commercial, and tribal gaming landscape, including leveraging fintech solutions.
Nicolas Techiera is a Boston-based associate at Nelson Mullins Riley & Scarborough LLP. He focuses his practice on a broad array of litigation matters, with a focus on complex commercial litigation and business disputes, insurance defense, construction disputes, and gaming and gambling matters.

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[1] See Tyler Maher, Forbes, Sports Betting Statistics: Legality By State In 2025, (Feb. 4, 2025), .
[2] See Eric Ramsey, Legal Sports Report, Americans Wager Nearly $150B On Legal Sports Betting In Record 2024, (Jan. 15, 2025), https://www.legalsportsreport.com/218449/2024-us-sports-betting-revenue/.
[3] See id.
[4] See Sports Wagering/Horse Racing Wagering, House Bill 347, 2023-2024 Session, (2023), available at https://www.ncleg.gov/BillLookUp/2023/hb347.
[5] See House Bill 127 (Act 63), 2023-2024 Session, (2023), available at https://legislature.vermont.gov/bill/status/2024/H.127.
[6] See James Bisson, Covers, 2024 US Betting Handle and Sports Betting Revenue Report, (Jan. 31, 2025), https://www.covers.com/industry/2024-betting-revenue-report.
[7] See House Bill 2331, 102nd General Assembly, 2nd Regular Session, (2024), available at https://house.mo.gov/bill.aspx?bill=HB2331&year=2024&code=R.
[8] See James Bisson, Sportsbook Review, Where Is Sports Betting Legal? All 50 U.S. States In-Depth Review (Nov. 15, 2024), https://www.sportsbookreview.com/news/legal-sports-betting-states-tracker/.
[9] See id.; see also Grant Leonard, Covers, FanDuel Takes Over as Mobile Sports Betting Operator in D.C., (Mar. 11, 2024) https://www.covers.com/industry/fanduel-to-take-over-dc-sports-betting-march-11-2024.
[10] See James Bisson, Sportsbook Review, Where Is Sports Betting Legal? All 50 U.S. States In-Depth Review (Nov. 15, 2024), https://www.sportsbookreview.com/news/legal-sports-betting-states-tracker/.
[11] See House Bill 15, 2023-2024 Session, (2024), available at https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2024RS/HB151-int.pdf; House Bill 2000, 2023-2024 Session, (2024), available at https://www.revisor.mn.gov/bills/text.php?session=ls93&number=HF2000&session_number=0&session_year=2023&version=list; Senate Bill 386, 2023-2024 Session, (2024), available at https://www.legis.ga.gov/api/legislation/document/20232024/221823.
[12] See Pat Evans, Legal Sports Report, Alabama Sports Betting Left Behind As Senate Passes Lottery Bill, (Jan. 15, 2025), https://www.legalsportsreport.com/170449/senate-alabama-sports-betting-lotterychanges-2024/.
[13] See James Bisson, Sportsbook Review, Where Is Sports Betting Legal? All 50 U.S. States In-Depth Review (Nov. 15, 2024), https://www.sportsbookreview.com/news/legal-sports-betting-states-tracker/.
[14] See Senate Bill 1550, 2023-2024 Session, (2023), available at https://www.nysenate.gov/legislation/bills/2023/S1550.
[15] See id. at § 1 (b).
[16] See Jessica Welman, SBC Americas, MA Regulators to Request Data on Limiting Bettors from Sportsbooks, (Nov. 21, 2024), https://sbcamericas.com/2024/11/21/ma-regulators-limiting-bettor-data/.
[17] See id.
[18] See Joe Boozell, Play Ohio, Breaking: Ohio Lawmakers Agree to Double Sports Betting Tax Rate, Official Vote Pending, (June 30, 2023), https://www.playohio.com/news/ohio-tax-rate-doubles/.
[19] See Robert Linnehan, Sports Betting Dime, New Illinois Sports Betting Tax Rate Goes Into Effect on July 1, (June 7, 2024), https://www.sportsbettingdime.com/news/betting/new-illinois-sports-betting-tax-rate-goes-into-effect-on-july-1/.
[20] See J.R. Duren, Lineups, Louisiana Sports Betting Taxes Could More Than Triple Under New Bill, (Nov.14, 2024), https://www.bingpoker.com/blog/indiana-online-gambling-bill-with-sports-betting-tax-hike-moves/; Bing Poker, Indiana Online Gambling Bill With Sports Betting Tax Hike Moves, (Jan. 31, 2025), https://www.bingpoker.com/blog/indiana-online-gambling-bill-with-sports-betting-tax-hike-moves/; Justin Byers, SBCAmericas, Lawmaker Aims to Raise Sports Betting Tax Rate in Massachusetts, (May 23, 2024), https://sbcamericas.com/2024/05/23/massachusetts-raise-sports-betting-tax/.
[21] See Ethan Matthew, Covers, Maryland Sportsbooks Could Lose Free Bet Deductions, (Sep. 27, 2024), https://www.covers.com/industry/maryland-sportsbooks-may-lose-free-bet-deductions-sept-27-2024.
[22] U.S. Congress, Hearings to examine legalized sports gambling (Dec. 17, 2024), https://www.congress.gov/event/118th-congress/senate-event/336420.
[23] See SAFE Bet Act, H.R. 9590 (2023-2024 Session), (2024), available at https://www.congress.gov/bill/118th-congress/house-bill/9590/text.
[24] See id. at § 101 (a).[25] See id. at § 102 (a)(1), (b)(1).
[26] See id. at § 103 (b)(7)(C).
[27] See id. at § 103 (6)(F)(iii).
[28] See Devin O’Connor, Casino.org, AGA President Bill Miller Hopeful for Second Trump Administration, (Dec. 16, 2024), https://www.casino.org/news/aga-president-bill-miller-hopeful-for-second-trump-administration/.
[29] See Matt Burke, Covers, Prediction Markets: What They Are and How They Differ From Sports Betting, (Jan. 17, 2025), https://www.covers.com/guides/prediction-markets-what-they-are-and-how-they-differ-from-sports-betting.
[30] See Geoff Zochodne, Covers, Kalshi Set to Expand Sports Betting-Like Contract Offerings, (Jan. 30, 2025), https://www.covers.com/industry/kalshi-sports-contracts-event-trading-betting-expand-achievments-january-2025; see also Ziv Chen, Covers, Super Bowl Predictions on Polymarket Hit Over $1 Billion, (Feb. 10, 2025), https://www.covers.com/industry/super-bowl-predictions-on-polymarket-hit-over-1-billion-feb-10-2025; Brian Sozzi, Yahoo Finance, Robinhood will let you bet on Super Bowl LIX between the Kansas City Chiefs and Philadelphia Eagles (Feb. 3, 2025), https://finance.yahoo.com/news/robinhood-will-let-you-bet-on-super-bowl-lix-between-the-kansas-city-chiefs-and-philadelphia-eagles-130159553.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuYmluZy5jb20v&guce_referrer_sig=AQAAAI6kjCH5mlm-W9DSMYcXZDoLi5wL5ZBtDz3UWJ8lZRKeB-QbxNhNFSQY2A03c0x4ThBx0f4zUqDfD5SKZvjHQGSA3Ply09iWvfXlhNReYF05rdpRoZ5NAuWQSrZur8FLMjGb3ur0x8ZokR8zp1SgQug7CtVwVMCHVdvxjfUZJG6f.
[31] See Sam Reynolds, CoinDesk, Analysis: Prediction Markets Have a Gambling Problem, (Jan. 14, 2025), https://www.coindesk.com/policy/2025/01/14/analysis-prediction-markets-have-a-gambling-problem.
[32] See Robert Ward, Ifrah Law, CFTC “Special Rule” Interpretation Led to an October Surprise, (Oct. 23, 2024), https://www.ifrahlaw.com/ifrah-on-igaming/cftc-special-rule-interpretation-leads-to-an-october-surprise/.
[33] KalshiEX LLC v. CFTC, No. No. 23-3257 (D.D.C. Sept. 12, 2024).
[34] See id., Docket No. 51.
[35] See Alexander Osipovich, MSN, Robinhood Yanks Betting Contracts After Regulator’s Pushback, (Feb. 4, 2025), https://www.msn.com/en-us/sports/nfl/robinhood-yanks-super-bowl-betting-contracts-after-regulator-s-pushback/ar-AA1ypoVz?ocid=BingNewsSerp.
[36] See id.
[37] See Jesse Hamilton, CoinDesk, Trump’s CFTC Head Slams Prediction Markets Resistance Under Predecessor, (Feb. 5, 2025), https://www.coindesk.com/policy/2025/02/05/trump-s-cftc-head-slams-prediction-markets-resistance-under-predecessor.
[38] See Sabrina Toppa, TheStreet Roundtable, Trump selects Brian Quintenz to head CFTC as agency’s oversight over crypto may grow, https://www.thestreet.com/crypto/policy/trump-brian-quintenz-cftc-head.
[39] See Geoff Zochodne, Covers, CFTC Says Sports Betting Laws An Issue for Prediction Markets, (Feb. 6, 2025), https://www.covers.com/industry/kalshi-cftc-crypto-sports-betting-event-contracts-roundtable-concerns-february-2025; see also CFTC Release Number 9046-25, CFTC Announces Prediction Markets Roundtable, (Feb. 5, 2025), https://www.cftc.gov/PressRoom/PressReleases/9046-25.