The State of Sports Betting in 2025: Industry Growth, Big Moves, and Trends to Know

The State of Sports Betting in 2025: Industry Growth, Big Moves, and Trends to Know

2025-07-01

Betting Goes Mainstream

The U.S. sports betting industry has entered a new phase in 2025: mainstream, normalized, and fast-evolving. What was once considered niche is now a major entertainment vertical generating billions in revenue.

As of mid-2025, 38 states and Washington D.C. have legalized sports betting, with several others in active discussions or legislative planning.

In 2024, Americans legally wagered a record $149.6 billion, producing over $13.7 billion in sportsbook revenue and $2.8 billion in state tax income—a 23.5% increase from the prior year.

Market Movers and New Entrants

The top-tier operators remain dominant:

  • FanDuel and DraftKings hold a combined ~70% of online market share, driven by brand scale and feature-rich offerings like same-game parlays.
  • BetMGM and Caesars Sportsbook continue to leverage casino loyalty ecosystems to compete effectively.

Newer entrants are reshaping the field:

  • ESPN Bet, launched through Penn Entertainment, is now active in 17 states and benefits from tight integration with ESPN’s media network.
  • Fanatics Sportsbook acquired PointsBet’s U.S. business and is experimenting with merchandise incentives for bettors.

Meanwhile, Fox Bet and WynnBET have either exited or significantly downsized their operations due to high acquisition costs and limited differentiation.

Holdout States: California, Texas, Florida

The three largest untapped markets—California, Texas, and Florida—still haven't launched regulated betting. Together, they represent over a quarter of the U.S. population.

  • In California, the 2022 ballot initiative failed amid tribal and commercial disputes. New proposals are under review.
  • Texas continues to face opposition in its legislature, particularly in the state senate.
  • Florida briefly launched betting in 2021 through a compact with the Seminole Tribe but remains tied up in court rulings and regulatory challenges.

These markets represent the next major frontier. If any one of them opens, expect a rapid surge in national betting volume and investment.

Technology Is Redefining the Experience

Modern sportsbooks are prioritizing user experience as much as pricing. Several trends are reshaping how fans engage:

Live Betting and Micro-Markets

  • In-play betting now accounts for 30–40% of NFL handle, with growth projections over 50% by 2026.
  • Micro-betting, fueled by companies like Simplebet and Betr, enables wagers on specific plays or drives, creating hundreds of real-time betting opportunities.

Same-Game Parlays and Player Props

  • Same-game parlays (SGPs) are driving engagement and operator profits due to higher hold percentages.
  • Player props, such as quarterback passing yards or touchdown bets, remain popular with fantasy-first users.
  • Advanced SGP tools now support live parlay building, allowing mid-game customization.

Personalization and UX Innovation

  • Apps are increasingly using user data to suggest bets and tailor experiences.
  • Social features like shared bet slips, "follow a friend" picks, and embedded highlights are becoming common.
  • Instant cash-out and live bet tracking features improve retention and user trust.

Media and League Convergence

Sports betting is now embedded into the viewing experience.

  • The NFL, NBA, and MLB all have official betting partnerships.
  • ESPN’s BetCast offers alternate broadcasts with live odds.
  • Amazon’s Thursday Night Football includes betting-focused commentary tracks.
  • Stadiums like FedExField now include on-site sportsbooks as part of the fan experience.

This level of integration marks a new era where betting is not a separate vertical—it’s part of the core product.

Regulation, Integrity, and Responsible Play

With growth comes greater regulatory scrutiny.

  • Ad regulations are tightening, with restrictions on targeting minors and clearer disclaimers on promotions.
  • Operators are investing in AI-based monitoring to detect unusual betting patterns and prevent fraud.
  • Leagues like the NFL continue to uphold strict no-bet rules for players, with multiple suspensions issued in recent seasons.

Most apps now feature built-in responsible gambling tools—deposit caps, play time limits, and self-exclusion options. Industry pressure is mounting for even more proactive design choices.

The Road Ahead

Looking forward, several developments are likely:

  • Federal oversight could become a reality within 3–5 years if state-level laws diverge too far.
  • Operators are piloting AI-generated bet suggestions, automated arbitrage, and interactive bet stream overlays.
  • Expansion into Canada and Latin America is underway, as U.S. markets mature.

In a landscape where odds and promos are increasingly commoditized, experience is the true differentiator. Winning brands will be the ones that blend data, usability, and trust into a seamless, modern platform.

Final Thoughts

The 2025 NFL season may be the most bet-on season in history.

For consumers, that means more choice, sharper interfaces, and new ways to interact with the games. For operators, it’s a high-stakes sprint to define the future of fan engagement.