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America Counts: Stories Behind the Numbers
State Governments Parlay Sports Betting Into Tax Windfall
Sports betting tax revenues have skyrocketed in recent years as more states got in on the action.
The national total of state sales tax revenue from sports betting soared 382%, from $190 million in the third quarter of 2021 (when data collection began) to $917 million in the second quarter of 2025, according to the U.S. Census Bureau’s Quarterly Summary of State and Local Tax Revenue (QTAX).
Sports betting became possible in May 2018 when the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act. Since then, a majority of states have legalized some form of sports betting; including online, mobile, retail sports betting and pari-mutuels (such as wagers made on horse-racing).
Continue reading to learn more about the surge in state and local tax revenue from sports betting.
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