The US sports betting market is poised for a record-breaking year in 2023, according to the latest analysis from PlayUSA.
Looking ahead to 2023, dozens of markets across the country will experience revenue and handle growth leading to a nationwide increase in handle and revenue of 21% and 27%, respectively. In total, PlayUSA expects states to generate nearly $120 billion in handle and nearly $9 billion in revenue in 2023.
Emerging markets in several states will drive US sports betting growth
At the start of 2022, 30 states and the District of Columbia had sports betting up and running at physical sportsbooks, online sportsbooks or both. As 2023 begins, that number jumps to 35 thanks to launches or expansions in Kansas, Ohio (Jan. 1), Nebraska, Maryland and Kansas.
New markets will open in 2023 in Ohio and Massachusetts, where handle is expected to exceed $12.6 billion and revenue is estimated to approach $1 billion. Maryland’s online sports betting launch will boost its handle and revenue to $3.85 billion and $438 million, respectively. Kansas will get its first full year of handle on the books, generating more than $1.8 billion in bets and creating more than $130 million in revenue.
Nebraska, which legalized sports betting in 2021 but has yet to launch, will produce minimal handle and revenue in 2023, according to PlayUSA’s analysis.
In total, new and emerging markets could contribute roughly $18 billion of the $20 billion in handle growth in the new year:
- Ohio: $7.59 billion handle / $547 million in revenue
- Massachusetts: $5.02 billion handle / $362 million in revenue
- Maryland $3.85 billion handle / $438 million in revenue
- Kansas $1.81 billion handle / $131 million in revenue
- Nebraska $14 million handle / $1 million in revenue
Ohio will vault into the top-five for handle and revenue
The five biggest US sports betting markets by handle in 2022 are New York, New Jersey, Illinois, Nevada and Pennsylvania. Those five states account for more than half of all handle and revenue in 2022.
That could change in 2023. PlayUSA projects Ohio could generate the fifth-highest handle and fifth-highest revenue in 2023. Driving those impressive numbers is a wide-ranging regulatory approach to sports betting. The state’s lawmakers have allowed retail and online sports betting, as well as a network of sports betting kiosks at small businesses such as bars, grocery stores and restaurants.
Additionally, Ohio is an epicenter for college and professional sports. The state has eight professional sports teams, including two NFL teams and two MLB teams. It’s also home to Ohio State University, which has a top-tier football program.
Pennsylvania will feel the effects of new markets
Pennsylvania’s sports betting market is one of the top revenue generators in the country. However, in 2023, competing markets in newcomers Maryland and Ohio will cut into the Keystone State’s handle and revenue, according to PlayUSA’s projections. Pennsylvania could see a 6% drop in handle and 9% drop in revenue.
That said, PlayUSA expects Pennsylvania’s revenue numbers to remain ahead of Nevada by about $9 million.
Top US sports betting states will continue to grow revenue
The country’s three premier sports betting markets, New York, Illinois and New Jersey, will see revenue growth in 2023, according to PlayUSA’s analysis.
New York is projected to generate a 14% increase in revenue, from $1.31 billion to $1.50 billion. Handle is likely to increase 13% from $17.96 billion to $20.25 billion. Its revenue numbers will outpace all other markets, nearly doubling what Illinois is projected to earn in 2023.
PlayUSA believes Illinois will continue to see handle and revenue growth next year. The state’s total handle is projected to increase 8% from $10.18 billion to $11.01 billion. Revenue is expected to increase 9% from $748 million to $819 million.
Considered the patriarch of the new era of sports betting in the United States, New Jersey will provide another strong showing in 2023. PlayUSA’s analysis indicates that total handle will see a slight drop from $11.62 billion to $11.50 billion, but that the Garden State’s revenue will increase 9% from $712 million to $775 million.