Online Betting States

  • Online Gambling Laws in The United States. Gambling laws can be a rather complex topic these days as there are several US federal gambling laws to account for such as the UIGEA, and the Federal Wire Act, as well as, several individual state gambling laws.
  • Neither of these states has state-sanctioned sports betting yet, which means that many bettors will be turning to online sportsbooks in order to wager on the big game. The big Super Bowl sports betting sites include such names as Bovada, MyBookie and BetOnline, and they provide solid service to bettors who wish to wager on the Super Bowl.

Legal Online Gambling. The 1990s brought internet gaming to Americans, making it convenient to play at home. Online casinos offer all the classics, like roulette, craps, blackjack, poker, slots, and video poker. Only a handful of states have legal online gambling regulated at the state level. Expansion of Online Gambling Laws Throughout the States.

Sports Betting Market Leaders By State

by Matias Dorta / November 12th, 2020

Introduction

U.S. online sports betting is akin to a digital gold rush. Each new state that legalizes online sports betting becomes a new frontier for the companies and operators competing for the U.S. market. In this blog, we will cover the states that have legalized online sports betting as of September 2020 and break down the current state of each market.

This blog will be updated monthly as new data becomes available (feel free to bookmark).

Sports Betting Market Leaders By State

The information below is based on the most recent data as of October 31, 2020, representing the various states that have regulated online sports betting markets. Market Leader refers to the leader for online sports betting. This is not a recommendation to buy or sell securities.

New Jersey

October 2020 Total Handle: $803 million

Online Percentage: 93%

Market Leader: FanDuel/Pointsbet

The Garden State has become the success story in U.S. online sports betting. New Jersey, which launched its first legal online sportsbook in the summer of 2018, is now the U.S. leader in online sports betting. The state set a record for single state monthly sports betting handle in the U.S. in August with a total handle of $667.9 million, and then broke its own record in September with a $748.6 million handle, and again in October passing $800M.

The state currently has over 10 live online sportsbooks, including DraftKings, FanDuel, BetMGM, William Hill, bet365 and more.

Online Betting StatesOnline betting united states

The market leader in New Jersey is FanDuel/PointsBet. FanDuel and PointsBet are both partnered with license holder Meadowlands, therefore, their revenue is reported together. The tandem recorded just under $30 million in revenue from online wagers in October. According to NJ Gambling Sites, FanDuel Sportsbook is responsible for a majority of that revenue. The runner-up in the New Jersey market is DraftKings/BetStars operating under Resorts license, the duo generated ~$14.6 million in revenue in October.

Related Companies: Flutter Entertainment, PointsBet, DraftKings, William Hill

Nevada

October 2020 Total Handle: $659.6 million

Online Percentage: 57.1%

States

Market Leader: William Hill

Nevada has a rich history of gambling as the first state to legalize most forms of wagering in 1931. In 2010, Nevada allowed sports betting apps to go live, which opened the door to wagering outside of a physical sportsbook. In October 2020, Nevada posted a $659.6 million sports betting handle. Despite seeing fewer tourists than last year, sports betting increased 21.3% from October 2019. Online mobile sports betting was responsible for a little over half of the handle in October 2020.

The market leader in Nevada is William Hill. The company boasts 32% of the total gross revenue market share in the state and attributes 69% of its bets taking place through its online channels. William Hill was recently acquired by Caesars Entertainment in a deal that values the company at $3.7 billion.

Related Companies: William Hill

Pennsylvania

October 2020 Total Handle: $525.8 million

Online Percentage: 89.8%

Market Leader: FanDuel

Pennsylvania is becoming one of the hottest online sports betting markets in the United States. I was in Philadelphia in September and every street corner had some sort of sports betting advertisement. The state set a sports betting handle record in September and followed that up with another record in October, reaching $525.8 million.

Online sportsbooks are aggressively going after the market with Penn National Gaming debuting the Barstool Sportsbook app in the state and DraftKings partnering with the Philadelphia Eagles to bring a premium lounge to Lincoln Financial Field.

However, the current market leader in the state is FanDuel. FanDuel sportsbook was responsible for $185 million of the October handle, followed by DraftKings ($123.4 million).

Related Companies: Flutter Entertainment, DraftKings, Penn National Gaming

Rhode Island

September 2020 Total Handle: $31.3 million

Online Percentage: 44.7%

Market Leader: William Hill

Rhode Island set a record in September 2020 for online betting with a total mobile handle of $14 million. The total handle in September topped $30 million, setting a 2020 record for the state. Rhode Island only has two sportsbooks in the entire state, and both are powered by William Hill, giving William Hill the entire market share.

If you are wondering why Rhode Island only has two sportsbooks in the entire state, taxes could be playing a role. Rhode Island imposes a whopping 51% tax on operators, making The Ocean State the highest taxed sports betting jurisdiction in the world.

Related Companies: William Hill

Indiana

October 2020 Total Handle: $207.5 million

Online Percentage: 83.5%

Market Leader: DraftKings

Indiana, like many other states on this list, hit a sports betting handle all-time high in September, surpassing $200 million for the first time. Sports betting in Indiana launched in October 2019 with three books, DraftKings, FanDuel, and BetRivers, and the former is the current market leader.

In October 2020, DraftKings ($90.5 million) and FanDuel ($63.6 million) accounted for close to 80% of the total online handle in the state. BetMGM came in third boasting a $20.1 million monthly handle.

The current market leaders will need to keep an eye out for William Hill / Caesars who made their intent to enter the market clear by signing a multi-year deal with the Indianapolis Colts.

Related Companies: Flutter Entertainment, DraftKings, William Hill

Iowa

October 2020 Total Handle: $81.9 million

Online Percentage: 69.1%

Market Leader: William Hill

Iowa legalized sports betting in May 2019 and William Hill, Elite Sportsbook, and PointsBet launched later in the year. In October 2020, the state hit a sports betting all-time high with $81.9 million in total handle. The overall online handle of $56 million during the month was also a record high for the state. William Hill, the market leader, accounted for close to $35 million in bets.

Related Companies: DraftKings, William Hill

Illinois

September 2020 Sports Betting Handle: $305 million

Online Percentage: 92%

Market Leader: BetRivers

The sports betting handle in Illinois rose to $139.8 million in August, a 166.7% increase from July. The market leader for the month was BetRivers, which accounted for around 85% of the total handle during the month. However, this type of market share should not be expected to be maintained. Due to pandemic related in-person registrations closures and a complicated executive order by the governor, FanDuel and DraftKings were essentially unable to register new users for the entire month.

September should look different as it will be the first full month where FanDuel and DraftKings can freely onboard users. Also, William Hill and PointsBet entered the market in September. All this new competition should cut into BetRivers’ 85% market share from August.

September Update: As expected, in September 2020, BetRivers market share was reduced by new competition in the Illinois market. DraftKings brought in more than $95.8 million in wagers and nearly passed BetRivers, which led all online sportsbooks in September with a $98.5 million handle.

Related Companies: Flutter Entertainment, DraftKings, William Hill

West Virginia

Betting

September 2020 Total Handle: $76.9 million

Online Percentage: 77%

Market Leader: DraftKings

Sports betting in West Virginia saw a major boost from August to September. Total handle increased 90%, while revenue jumped 133% month-over-month. Currently, there are four major players operating in the state - William Hill, FanDuel, BetMGM, and the market leader, DraftKings.

Since launching in August 2019, DraftKings and its partner in the state, Hollywood Sportsbook, have seen $296 million in handle, with $94 million of that total coming from online bets.

BetMGM and FanDuel operate under the same license with The Greenbrier. The combined groups have brought in a total handle of $143 million, with $131 million of that total taking place online.

Related Companies: Flutter Entertainment, DraftKings, William Hill

Colorado

October Total Handle: $210 million

Online Percentage: 98%

Market Leader: DraftKings

Colorado sports betting has been on fire since its launch in May 2020. Sports betting in the state has seen a month-to-month increase in overall betting handle for five consecutive months. In July, CO passed $50 million in total handle for the first time; in September, the monthly handle surpassed $200 million. The growth can be attributed to a surge in online app accessibility. Bettors in Colorado can already wager on over ten different mobile apps, including DraftKings, FanDuel, BetMGM, BetRivers, and more. Users seem to be buying into the digital experience with over 98.4% bets being placed online since July 2020.

Estimates suggest that DraftKings is the market leader in Colorado followed by FanDuel, with both operators accounting for 84% of the state’s total gross gaming revenue since sports betting went live in the state in May.

Online Horse Betting Legal States

New york sports betting

Related Companies: Flutter Entertainment, DraftKings, William Hill

Oregon

September 2020 Total Handle: $26 million

Online Percentage: 100%

Market Leader: DraftKings-SBTech / Oregon Lottery

Oregon sports betting is complicated to say the least. The state only allows bettors to wager online through one app, Scoreboard, which is a partnership between the Oregon Lottery and SBTech. The app launched in October 2019 and as of March 2020, the Oregon Lottery had lost $2 million on the venture despite seeing ~$6 million in revenue. This is due to a complicated arrangement between the Oregon Lottery and SBTech who, according to Legal Sports Report, may have the better end of this deal. DraftKings and SBTech merged back in April 2020.

Oregon set a sports betting all-time high in September with $26 million in handle with football responsible for the majority of the action.

Related Companies: DraftKings

Washington DC

September 2020 Total Handle: $15.4 million

Online Percentage: 20%

Market Leader: GameBet

Just like Oregon, online sports betting in Washington DC is only allowed through a government operated app. Washington DC allows bettors to wager online through GameBetDC, an app operated by the DC Lottery. The app has a 1.6 out of 5 rating in the Apple Store and is being dominated by the only alternative in the city, the land-based William Hill sportsbook in the Capital One Arena.

In September, the William Hill retail sportsbook saw $12.2 million in wagers, close to four times more than the $3.2 million wagered on GameBetDC during the month.

Despite having the advantage of being the exclusive online offering, GameBetDC’s competition is only getting stronger. William Hill is opening a brand new luxurious sportsbook and premium lounge in the Capital One Arena in 2021 (the current set up is temporary due to the pandemic) and FanDuel is set to launch a retail sportsbook with D.C. United inside Audi Field.

Related Companies: William Hill

New Hampshire

October Total Handle: $47 million

Online Percentage: 85%

Market Leader: DraftKings

New Hampshire set a state record in October by reaching $47 million in total sports betting handle, with 85% of that handle coming online. 100% of the online handle was placed on the state’s only mobile sportsbook, DraftKings. The DraftKings Sportsbook app saw $40 million in handle during the month of October in New Hampshire.

Related Companies: DraftKings

Table

StateMonthly HandleOnline PercentageMarket Leader
New Jersey$803 million93%FanDuel/Pointsbet
Nevada$659.6 million57.1%William Hill
Pennsylvania$525.8 million89.8%FanDuel
Rhode Island$31.3 million44.70%William Hill
Indiana$230.9 million84%DraftKings
Iowa$81.9 million69.10%William Hill
Illinois$305 million92%BetRivers
West Virginia$76.9 million77%DraftKings
Colorado$210 million98.40%DraftKings
Oregon$26 million100%DraftKings-SBTech / Oregon Lottery
Washington DC$15.4 million20%*GameBet
New Hampshire47 million85%DraftKings

* Information based off of September 2020 / October 2020 data. William Hill is the overall market leader in Washington DC, GameBet is the market leader for online betting because it is the only option allowed in the DC for online betting.

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Millions of people in the United States of America are interested in the topic of whether or not online gambling is legalized in their area or jurisdiction. It is legal to gamble in the USA, but the laws vary from one state to another. Also, having your own casino or poker room is not permissible in most places. However, people are not prosecuted for having platforms online where you can bet.

Online gaming websites are licensed and are safe for users. Several states in the US are regulating online gambling as of late. States such as Delaware, New Jersey, and Nevada were the first to legalize betting sites, and many more followed. Other states are still waiting to see if the department of justice in the US will ban these online betting spots.

Online Betting Sites In The United States

US states with legal online gambling

Online Betting Legal States

Delaware

It is a US state that has a wide variety of online gaming. It legalized the process in 2012 for the residents. It allows casino games both online and in person. Nowadays, residents are not frequently commuting to brick and mortar casinos like they used to because of the ease of gambling at home. You are free to play and bet on the online gambling sites since there is no fear of being prosecuted if found.

Online gaming sites that have been created in Delaware permit residents to access and also provide 24/7 customer support via emails or phone in case you experience problems. Online casinos are legalized in this state. Residents and visitors are supposed to be within the borders of Delaware in order to use these gambling sites. Notably, those Delawareans in other countries will not be in a position to use these sites since they are only legal within Delaware.

Online Betting Legal States

New Jersey

It is among the online gambling pioneers in the USA. It legalized online casinos and sportsbooks in 2013. Ever since then, New Jersey has provided a multitude of online betting services to individuals and major brands. Gambling either online or offline in this state has strict rules. For you to start gaming and betting online, you are required to verify that your age is 21 years and above. However, you can play the lottery and physical horse racing if you are 18 years of age or older. You have to be physically present in New Jersey for you to gamble. Additionally, you can create an online casino NJ account outside the state but can’t play until you are actually inside state lines.

Nevada

It is currently among the US states with legal online gambling laws. Now, Nevada state has legislation that does not regulate online casinos. Residents of Nevada are enjoying web games through online licensed sites. Betting is controlled by the gaming commission and gambling control board that are based in this state. Nevada has more experience in making gambling laws compared to other states in the US. Therefore, lawmakers look to Nevada when they are designing their own regulations. Note that if a gaming operator gets a license from Nevada, other regulators in the US and the globe will license the company. It was amongst the first states to legalize online gambling, virtual sports betting as well as eSports betting.

Conclusion

Your ability to gamble online depends on the laws that have been created in your state. There are states whose online lottery does not involve legislation. Betting via the web is treated differently in various jurisdictions. Sports betting was illegal until in 2018, when the US Supreme Court allowed individual states to make decisions on whether to permit it or not. Also, with the online gambling being ever-evolving, it is increasing the tax revenue of many states. But with the rise in new technology, regulations are being violated, leading to the punishment of some people.