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Billions in tax revenue would be generated if all 50 US states legalized sports betting, a report in Tax Foundation claim.
If all states established statewide gambling markets, the Tax Foundation estimates that gross gaming revenue (GGR) would increase by $15.6 billion annually.
If all 50 states established legal, open, statewide sports betting markets, a 10 percent GGR tax would generate an additional $1.6 billion annually in tax revenue.
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— Tax Foundation (@TaxFoundation) January 22, 2026
This number is more than double what is currently reported, and legal sports betting in all states will generate $1.6 billion annually in tax revenue, with a 10% GGR tax.
Despite most states legalizing sports betting in some form, only 30 states allow bettors to use online betting platforms.
If legalization occurs in all states, the largest tax revenue will occur in California ($570 million), Texas ($326 million) and Florida ($199 million), which will contribute significantly to the economy.
Will we see sports betting legalized in all states in the future?
Missouri has become the latest state to legalize sports betting, with the first state-regulated sportsbook went live at the end of last year.
That now leaves 11 states where sports betting is illegal: South Carolina, Hawaii, Georgia, Alabama, Alaska, California, Texas, Oklahoma, Minnesota, Utah and Idaho.
While California and Texas are the two biggest generators of tax revenue when legalized sports betting is introduced, some of the smaller states still generate millions.
Hawaiifor example, generates $11 million annually in tax revenue, despite the small population of adults within the state.
Idaho It also has a small adult population compared to other states, but it is likely to generate about $13 million annually in tax revenue.
Although Alaskawith a third of the population confined to rural areas, is able to generate $6 million in tax revenue, even though the state has no professional state sports teams.
Of the 11 states, only Georgia has an active legislature regarding the legalization of sports betting, suggesting that there is more work to be done to ensure that all 50 states benefit from increased tax revenue.
Featured image: Grok
The post Billions in tax revenue could be generated by expanding the legalization of sports betting first appeared in ReadWrite.
