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The U.S. Census Bureau said today that its Quarterly Summary of State and Local Tax Revenue confirms a nationwide surge in sports betting revenue. The national total of state sales tax revenue from sports betting increased 382%, from $190 million in Q3 of 2021 (when data collection began) to $917 million in Q2 of 2025, according to the U.S. Census Bureau’s Quarterly Summary of State and Local Tax Revenue (QTAX).
“Sports betting became possible in May 2018 when the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act. Since then, a majority of states have legalized some form of sports betting; including online, mobile, retail sports betting and pari-mutuels, such as wagers made on horse-racing,” Census said.
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During the past four years, many states have eased restrictions on gambling, contributing to the explosion of sports betting sales tax revenue.
- New York’s online sports betting market went live Jan. 8, 2022. The state applies a 51% tax rate to gross gaming revenue and regularly collects over $200 million in revenue per quarter.
- Ohio’s legal sports betting market went live Jan. 1, 2023, and took in $39 million in the first quarter of that year.
- North Carolina’s sports betting market went live March 11, 2024. The state collected $38 million during the second quarter of 2024.
- Illinois increased its tax rate from a flat 15% on adjusted gaming revenue to a graduated rate between 20% and 40%. This took effect Jan. 1, 2025.
- Delaware, Kansas, Maine, Massachusetts, North Carolina and Vermont adopted online sports betting in recent years; Missouri followed suit on Dec. 1, 2025.
Seasonality of Sports Betting
Sports betting revenue is typically higher in the winter – which includes the fourth quarter of one calendar year and the first quarter of the next – than in the summer.
The fourth quarter of the calendar year includes some of the most popular sporting events:
- Major League Baseball (MLB) playoffs.
- Start of both the National Basketball Association (NBA) and National Hockey League (NHL) seasons.
- Prime portion of the National Football League (NFL) season.
“The first quarter of the calendar year has the remainder of the NBA and NHL regular seasons, as well as the NFL playoffs and Super Bowl. It also includes the March Madness college basketball tournament. Revenue wanes in the summer months when MLB is often the only major sport in action,” Census said.
Percentage of State Tax Revenue
States have varying tax rates on sportsbook revenues, ranging from 6.75% (Iowa, Nevada) to 51% (New Hampshire, New York, Rhode Island). Typically, the higher the rate, the larger the portion of a state’s total tax revenue that comes from sports betting.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Sports Betting Tax Revenues Soaring
Click to enlarge.
The U.S. Census Bureau said today that its Quarterly Summary of State and Local Tax Revenue confirms a nationwide surge in sports betting revenue. The national total of state sales tax revenue from sports betting increased 382%, from $190 million in Q3 of 2021 (when data collection began) to $917 million in Q2 of 2025, according to the U.S. Census Bureau’s Quarterly Summary of State and Local Tax Revenue (QTAX).
“Sports betting became possible in May 2018 when the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act. Since then, a majority of states have legalized some form of sports betting; including online, mobile, retail sports betting and pari-mutuels, such as wagers made on horse-racing,” Census said.
Click to enlarge.
During the past four years, many states have eased restrictions on gambling, contributing to the explosion of sports betting sales tax revenue.
Seasonality of Sports Betting
Sports betting revenue is typically higher in the winter – which includes the fourth quarter of one calendar year and the first quarter of the next – than in the summer.
The fourth quarter of the calendar year includes some of the most popular sporting events:
“The first quarter of the calendar year has the remainder of the NBA and NHL regular seasons, as well as the NFL playoffs and Super Bowl. It also includes the March Madness college basketball tournament. Revenue wanes in the summer months when MLB is often the only major sport in action,” Census said.
Percentage of State Tax Revenue
States have varying tax rates on sportsbook revenues, ranging from 6.75% (Iowa, Nevada) to 51% (New Hampshire, New York, Rhode Island). Typically, the higher the rate, the larger the portion of a state’s total tax revenue that comes from sports betting.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.