The Actual Cost of Sports Betting
In 2025, Americans wagered a record $165 billion on legal sports betting, primarily through sportsbook mobile apps. These figures exclude the increasingly popular prediction market space. Sports betting markets generate significant federal tax revenues, as well as for state and local tribal levels. Last year, sportsbooks generated $16 billion in revenue, with approximately $3.7 billion of it paid in taxes. However, gamblers are also subject to taxes on their winnings. Until 2026, taxpayers could offset their gambling winnings by deducting
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