The Truth About Sports Betting: How Many Americans Bet on Sports

14 min read
Aug 11, 2024, 3:20 PM
Author
Sol Fayerman-Hansen
Sol Fayerman-Hansen
Editor-in-Chief
Last Updated: Sep 19, 2024, 1:47 PM

The Rise of Sports Betting in the US

Since the Supreme Court 2018 decision to overturn PASPA, the sports betting industry has seen remarkable growth. By May 2024, the U.S. commercial gaming industry’s revenue reached $29.75 billion, a 7.1% increase compared to the same period in 2023. 

Sports betting, in particular, generated $5.72 billion in revenue through May 2024, marking a 24.5% year-over-year increase. This surge has been driven by the expansion of online sportsbooks and the legalization of sports betting in over 30 states.

"The U.S. commercial gaming industry generated $29.75 billion in revenue through May 2024, driven by the continued growth of sports betting and online gaming." - Source: American Gaming Association

The rise in sports gambling is largely attributed to the convenience of mobile betting apps, which accounted for 80% of all sports bets placed in 2023.

The Prevalence of Sports Betting in the US

According to recent data, approximately 20% of U.S. adults engage in sports betting, amounting to nearly 60 million people. This figure represents a significant rise from previous years, as more states legalize sports betting. In May 2024 alone, land-based and online sportsbooks generated a combined $1.08 billion in commercial revenue, a 24.7% increase from the previous year.

It must be mentioned that there are ~2.5 million U.S. adults who suffer from gambling addiction and hundreds of thousands of underage gamblers across the States.

Land-based and online bookmakers generated $1.08 billion in revenue in May 2024, reflecting the growing popularity of sports betting across the U.S." - Source: American Gaming Association

States like New York and Pennsylvania are leading the charge, with New York alone seeing over $1 billion in sports bets placed monthly since legalizing online sports betting in 2022.

The Different Types of Sports Betting

Sports betting encompasses a wide range of betting options, each catering to different preferences and levels of expertise. Traditional bets like moneylines focus on the outcome of a game, such as predicting which team will win. This form of betting is straightforward, making it accessible to novice bettors.

Prop bets have surged in popularity, especially during high-profile events like the Super Bowl. These bets allow gamblers to wager on specific occurrences within a game, such as the number of touchdowns a player will score or even more niche events like the length of the national anthem. 

For instance, in Super Bowl LVII, one of the most popular prop bets was on whether the coin toss would result in heads or tails—a bet that seems simple but generates significant excitement.

In-play betting, also known as live betting, offers an interactive experience by allowing bettors to place wagers while the game is ongoing. This dynamic form of betting requires quick decision-making and real-time analysis, as odds can change rapidly based on the game’s progress. 

For example, during a major NBA game, a bettor might place a live bet on whether a player will score a three-pointer in the next quarter based on their current performance.

Prop bets and in-play betting offer unique and engaging ways to participate in sports betting, with in-play bets alone accounting for over 30% of all sports wagers placed during major events.

Online bookmakers have further diversified betting options, making it easier for bettors to engage in specific forms of gambling that align with their interests. 

Whether it's placing a bet on a major league game or engaging in niche markets like esports, online platforms offer unparalleled flexibility.

A popular bet is parlay betting, where multiple bets are combined into one, potentially yielding higher payouts. For instance, a bettor might place a parlay bet on the outcomes of three NFL games in a single weekend. If all predictions are correct, the payout is significantly higher than if each bet were placed separately.

Daily Fantasy Sports (DFS) adds another dimension to the sports betting landscape. Unlike traditional sports betting, DFS involves creating a fantasy team from real players and earning points based on their performance in actual games. This format is particularly popular during NFL and NBA seasons. The skill-based nature of DFS has attracted a large following, with platforms like DraftKings and FanDuel leading the market.

The Risks of Sports Gambling

Despite the excitement and entertainment sports betting offers, it carries significant risks. Gambling addiction is a growing concern, with 2.5 million Americans suffering from severe gambling problems, according to the National Council on Problem Gambling (NCPG). Moreover, an additional 6-8 million Americans are at risk of developing gambling addiction due to their gambling behavior. 

The NCPG warns that sports betting, in particular, can be a gateway to more severe forms of gambling addiction due to its widespread appeal and accessibility.

Brad eventually lost his job due to the stress and time consumed by his gambling habits, and his personal relationships deteriorated. 

null

Over time, what started as a hobby spiraled into an addiction that led him to exhaust his savings and borrow money from friends and family. Brad eventually lost his job due to the stress and time consumed by his gambling habits, and his personal relationships deteriorated. His story is a sobering reminder of how easily sports betting can become a destructive force.

Research Insights on Sports Betting Risks

Research published in the Journal of Gambling Studies highlights the correlation between the accessibility of online sports betting and the increase in problem gambling. 

The study found that the anonymity and convenience of online platforms contribute to higher rates of compulsive gambling. This is supported by findings from a study by the American Psychiatric Association that indicate individuals who engage in sports betting are more likely to experience gambling-related harm compared to those who participate in other forms of gambling.

"The convenience of online sports betting has created a new avenue for gambling addiction, making it easier for individuals to engage in risky behaviors without the immediate awareness of the consequences." - American College of Neuropsychopharmacology (ACNP)

Best Practices for Safer Sports Betting

To mitigate the risks associated with sports betting, it’s crucial to follow best practices that promote responsible gambling:

  1. Set Clear Limits: Establish a budget for gambling activities and stick to it. Avoid chasing losses, as this often leads to more significant financial harm.
  2. Self-Awareness: Regularly assess your gambling habits. If you notice signs of compulsive behavior, such as spending more time or money on gambling than intended, seek help immediately.
  3. Take Breaks: Regularly take breaks from betting to prevent it from becoming an obsessive habit. This can help you maintain control and keep gambling in perspective.
  4. Educate Yourself: Understand the odds and the potential consequences of gambling. Knowing the risks involved can help you make more informed decisions.
  5. Seek Support: If you or someone you know is struggling with gambling, reach out to organizations like the NCPG for resources and support.
Key Takeaway
Sports betting, while enjoyable for many, poses significant risks, particularly in the age of online gambling. By following best practices and being aware of the potential dangers, individuals can protect themselves from the harmful effects of gambling addiction. Remember, responsible gambling is key to ensuring that betting remains a fun and controlled activity.
null
null
null

Vulnerable Populations and Sports Betting

Certain groups are more susceptible to the risks associated with sports betting. Young people, in particular, are more likely to develop problem gambling habits due to their exposure to online gambling and pervasive social media promotions. 

According to our demographics research, young adults between the ages of 18 and 24 are at an especially high risk, as they are still developing impulse control and are more influenced by peer pressure and advertising .

Vulnerability Among Youth: An Example

Consider the case of Sarah, a college student who started betting on sports through an app she discovered on social media. What began as a way to make games more exciting quickly turned into an obsession and more money. 

The constant stream of promotions and incentives to place bets, coupled with her lack of experience in managing money, led Sarah to accumulate significant debt. This not only impacted her academic performance but also strained her relationships with friends and family, who were unaware of the extent of her gambling.

Research Insights on Susceptible Populations

At Rg.org, we have emphasized the need for targeted interventions for young people, as they are often unaware of the risks involved in gambling. Our study highlighted in Gambling: A Hidden Epidemic points out that the normalization of gambling through sports and social media is particularly dangerous for this demographic. Young people are frequently bombarded with advertisements that make betting seem harmless and fun, leading them to underestimate the potential consequences.

Additionally, individuals from the general population with different addictions or pre-existing mental health issues are more vulnerable to developing gambling problems. Those suffering from depression, anxiety, or substance abuse disorders are more likely to engage in compulsive gambling as a form of escape. The intersection of these issues creates a complex web of challenges, making it difficult for these individuals to seek help and recover.

"The normalization of gambling in sports and social media has created a perfect storm for young people, making them particularly vulnerable to developing addictive behaviors."

Best Practices for Protecting Vulnerable Populations

To address the risks faced by these susceptible groups, several best practices should be considered:

  1. Education and Awareness Campaigns: Implement targeted campaigns that educate young people about the risks of gambling, emphasizing the importance of self-control and the potential long-term consequences of gambling addiction.
  2. Parental Guidance and Monitoring: Encourage parents to have open conversations with their children about gambling, its risks, and the influence of social media. Monitoring online activity can also help prevent exposure to harmful gambling promotions.
  3. Mental Health Support: For individuals with mental health issues or other addictions, integrating gambling addiction screening into regular mental health assessments can help identify and address problems early.
  4. Limit Advertising: Advocate for stricter regulations on gambling advertisements, particularly those targeting younger audiences on social media platforms.
  5. Promote Responsible Gambling Tools: Encourage the use of tools that allow individuals to set betting limits, self-exclude from gambling sites, or access resources for help.
Key Takeaway
Young people and individuals with mental health challenges are particularly at risk of developing problem gambling habits due to their susceptibility to targeted advertising and the allure of online betting. By implementing educational initiatives, promoting responsible gambling tools, and providing mental health support, we can better protect these vulnerable populations from the hidden dangers of sports betting.

The Economic Impact of Sports Betting

Sports betting has significantly influenced both state and national economies. Legalized gambling generates substantial tax revenue, which state governments allocate to public programs such as education and infrastructure.

For example, New York's sports betting industry alone generated over $200 million in tax revenue in 2023, highlighting its contribution to public finances. Traditional gambling hubs like Las Vegas and Atlantic City have also benefited from integrating sportsbooks, bolstering overall gaming revenues.

In New Jersey, sports betting contributed nearly $100 million in state tax revenue in 2023, which was channeled into public education and community development programs.

However, the economic benefits of sports betting must be balanced against the societal costs associated with problem gambling. States must allocate funds to treatment programs for compulsive gamblers and public addiction services, which can be substantial.

The Role of Technology in Sports Betting

Technology has been a driving force behind the rapid expansion of sports betting, with online oddsmakers and mobile apps making it more accessible than ever. As we look to the future, Artificial Intelligence (AI) is poised to revolutionize the gambling industry further. AI algorithms can analyze vast amounts of data to provide personalized betting recommendations, detect patterns that may indicate problem gambling, and enhance fraud prevention measures. This technology will not only improve user experience but also introduce advanced safeguards, potentially reducing the risk of gambling addiction.

AI is set to reshape the gambling landscape by offering personalized betting insights and enhancing player protection through sophisticated monitoring tools.

Regulation and Oversight of Sports Betting

Regulation and oversight are crucial to ensuring the sports betting industry operates fairly and responsibly. Both the federal government and state governments play essential roles in regulating sports gambling, particularly online operators and casino games. Illegal gambling remains a significant challenge, with many Americans participating in unregulated gambling activities. The National Council on Problem Gambling has called for stricter regulations to combat illegal gambling and protect consumers. Additionally, the Council on Problem Gambling advocates for robust oversight to prevent gambling addiction and ensure that the industry contributes positively to society.

Preventing Gambling Addiction

Preventing gambling addiction is a critical aspect of responsible sports betting. The National Council on Problem Gambling and the Council on Problem Gambling have both emphasized the need for preventive measures, such as self-exclusion programs, public awareness campaigns, and resources for those struggling with compulsive gambling. 

The gaming industry, including major players like Churchill Downs, must also take responsibility for promoting responsible gambling practices and supporting those affected by gambling addiction. Statistics show that early intervention can significantly reduce the risk of developing severe gambling problems, making prevention efforts crucial in mitigating the impact of gambling addiction.

<p>Sol has over 20 years of experience in writing for diverse industries including sports, gambling, regulation, technology, and startups. As the Editor-in-Chief at RG, Sol brings a wealth of knowledge and expertise to the role, focusing on delivering transparent, evidence-based content grounded in thorough research. Sol's mission is to empower readers to enjoy gambling responsibly and make informed decisions, enhancing their overall experience through insightful and engaging content. Under Sol's leadership, <a href="https://www.rg.org">RG</a> prioritizes the highest standards of integrity and reliability, ensuring that all information provided is accurate and trustworthy. Sol's dedication to transparency and research-based writing helps create a responsible gambling environment where readers can truly benefit from the content. This commitment to excellence has positioned RG as a leading source of information in the gambling industry.</p><p><strong>Experience:</strong></p><ul><li>Over 20 years in writing and editing across multiple industries</li><li>Former head of regional innovation at BMO Financial Group</li><li>Senior Writer, Online Casino Reports</li></ul>
Interests:
NFL
CFL
NBA
MLB
NHL
ATP
UEFA
NCAA Baseball
PGA
Wimbledon
UFC
Digital Art
Art Collecting
Creating Books
Advanced Technology

Meet our Authors

Paruyr Shahbazyan began his business career in 2000 as a private entrepreneur. Over thirteen years, he developed a deep understanding for business and leadership, laying a solid foundation for his professional journey.

In 2013, Paruyr stepped into the sports and betting industry as the founder and president of Bookmaker Rating. This online mass media platform, which he led until 2020, focused on providing in-depth analysis and insights in sports betting, earning a reputation for its quality content. 

Continuing his innovative approach in 2022, Paruyr co-founded Azuro, a decentralized betting protocol. This venture showcases his dedication to integrating advanced technology in the evolving landscape of sports betting. Through these diverse experiences, Paruyr has continuously influenced and shaped the betting industry, driving new trends and setting high standards.

 ExperienceYear
Engaged in private entrepreneurship2000-2013
Founder and President at Bookmaker Rating, an online platform focused on sports and betting2013-2020
Co-founder at Azuro, a decentralized betting protocol2022

"Innovation in sportsbetting comes from a deep understanding of both technology and the human element of sports." 

- Paruyr Shahbazyan, Founder, RG

 

Principles and Ethics

Paruyr Shahbazyan's core beliefs lie in the power of informed decision-making and integrity in the betting industry. He understands that the foundation of successful betting is not just about odds and predictions, but also about the trust and reliability of the information provided. Paruyr advocates for a betting environment where transparency and knowledge are paramount, ensuring that bettors are well-equipped with accurate data and insights.

Strategic Vision

Paruyr's vision is to revolutionize the sports betting industry through the integration of technology. He sees the future of betting as a blend of traditional sports knowledge with innovative tech solutions, like decentralized protocols, to enhance user experience and fairness. His aim is to create platforms that are not only user-friendly but also uphold the highest standards of ethical betting, contributing to a more responsible and enjoyable betting culture.

Future Perspectives

Looking towards the future, Paruyr envisions a betting landscape that is more inclusive, technologically advanced, and globally connected. He anticipates a significant shift towards more decentralized and transparent betting systems, driven by blockchain technology. Paruyr is committed to being at the forefront of this change, continuously exploring new possibilities and innovations that can redefine what it means to engage in sports betting in a digital world. His focus is on building systems that prioritize user empowerment, fairness, and the global growth of the sports betting community.

 

Sol Fayerman-Hansen
Sol Fayerman-Hansen
Editor-in-Chief

Sol has over 20 years of experience in writing for diverse industries including sports, gambling, regulation, technology, and startups. As the Editor-in-Chief at RG, Sol brings a wealth of knowledge and expertise to the role, focusing on delivering transparent, evidence-based content grounded in thorough research. Sol's mission is to empower readers to enjoy gambling responsibly and make informed decisions, enhancing their overall experience through insightful and engaging content. Under Sol's leadership, RG prioritizes the highest standards of integrity and reliability, ensuring that all information provided is accurate and trustworthy. Sol's dedication to transparency and research-based writing helps create a responsible gambling environment where readers can truly benefit from the content. This commitment to excellence has positioned RG as a leading source of information in the gambling industry.

Experience:

  • Over 20 years in writing and editing across multiple industries
  • Former head of regional innovation at BMO Financial Group
  • Senior Writer, Online Casino Reports
Cristina Varela Galan
Cristina Varela Galan
Problem Gambling Expert

Cristina used to work as a Psychology Assistant in the Bizkaia Pathological and Risky Gamblers Association. She was also part of a research team in Deusto University, specializing in pathological gambling area. While working there, she managed to develop her own project 

 “Exploring the association between emotional regulation, alexithymia, stressful life events and gambling in adolescent and young adult women”.

Nick Ashbourne
Nick Ashbourne
Senior Writer

Nick has been fascinated with sports since he was first taken to a Toronto Maple Leafs game back in 1998, and he's written about them professionally since 2014.

Nick has covered baseball and hockey for outlets like The Athletic, Sportsnet, and Yahoo Sports, and his sports betting expertise has grown since its legalization in Ontario in 2022. 

Between 2022 and 2023 he worked for a betting startup called NorthStar Bets, and in 2024 he contributed to Oddspedia before joining the Responsible Gambler team.

Sergey Demidov
Sergey Demidov
Head of News Department

Sergey has been in sports journalism since 2007 as a reporter, editor, and manager. He has covered the Olympic Games, soccer World Cups, the World Cup of Hockey in 2016, the European championships, the Stanley Cup Finals, IOC events, and many others. Sergey interviewed the sport's greatest athletes, coaches, and executives. Since 2016, he has been an Independent Senior Editor of NHL.com/ru.

Anna Kravtcova
Anna Kravtcova
Problem Gambling Expert

Ph.D. in organizational psychology, an internationally certified psychologist (EuroPsy 2022, Cognitive behavioural therapy of mindfulness 2020, International Society for Emotional Intelligence 2017, Russian Psychological society 2014, American Psychological Association(Society for Industrial and Organizational Psychologist) 2011), speaker of many international conferences (USA, Brazil, Portugal, Czech Republic, Russia, etc.). TEDx speaker.

Show More