National Sports Betting Numbers For September Prove Industry Growth

Records Fall, Revenues Rise

A new record has been set in the sports betting world as the month of September saw the highest monthly gross revenue total since the fall of PAPSA in 2018.

There was a unanimous trend in the month of September whereby the house clearly routed the sports betting public across the country and as a result, generated more revenue than any other month in legal sports betting history. While Arizona and Illinois have yet to report their September figures, all of the other states generated a combined $793.44 million in revenue during the month. This blew past the previous record of $723.33 million, achieved in November 2021, and not every state has even been accounted for.

The top five all-time monthly gross revenue totals are as follows:

1. September 2022: $793.44 million
2. November 2021: $723.33 million
3. January 2022: $648.93M
4. May 2022: $608.53M
5. March 2022: $603.01M

The $793.44 million (and counting) revenue figure was generated from a $6.5 billion handle in the month of September, equating to a win rate of around 12.11% – way above the national average. In fact, 22 of the 24 states that have released their September figures have reported win rates of 11.3% or higher. Concurrently, 14 states set all-time records, the country saw its first $6+ billion monthly national handle since May, and eight states posted revenues of $50 million or more. For Virginia, Colorado, and Indiana, passing the $50 million threshold was a first.

Tax Revenue Pours In

Year to date, sportsbooks have generated roughly $975.6 million for their respective states in tax revenue. That accounts for more than half of the all-time post-PAPSA state tax revenue total of $1.95 billion.

A large share of the tax revenue is thanks to New York which, despite only launching in January, is the clear leader of the U.S. sports betting market. In September, New York’s 51% tax rate generated $73.1 million in tax revenue for the state. This accounts for almost half of the current national tax revenue total for the month of September which is currently $158.8 million (subject to change upon Arizona and Illinois’ results).

Growing, Growing, Gone!

Unsurprisingly, year-over-year revenue increased dramatically. Gross gaming revenue for the month jumped from $440 million in September 2021 to $793.4 million in September 2022, an increase of 80.3%. This is in large part because only 23 states had legal sports betting in September 2021. Four more states added legal sports betting markets by September 2022, including New York, which leads in nearly every category.

New York led in total handle for September – the top 10 handles produced by states in September 2022 are as follows:

1. New York: $1.26 billion
2. New Jersey: $866.7 million
3. Nevada: $761.1 million
4. Pennsylvania: $645.2 million
5. Colorado: $450.2 million
6. Virginia: $411.3 million
7. Michigan: $383.1 million
8. Indiana: $382.5 million
9. Tennessee: $336.9 million
10. Louisiana: $207.5 million

This list is likely to change upon the announcement of Illinois’ and Arizona’s numbers as those two states are typically leaders in this category. Revenues are also likely to continue increasing as October saw a full month of college football, NFL, NBA, and the start of the World Series.