SPRINFIELD, Ill. (Chambana Today) — Since legalizing sports betting in 2020, Illinois has emerged as one of the nation’s top markets, according to a new study by The Motley Fool. The report, which analyzes seven years of sports betting data, ranks Illinois #2 nationwide in tax revenue generated from legal sports wagers and #3 in gross operator revenue.

So far, Illinois has collected nearly $1 billion ($958 million) in tax revenue from sports betting activity — second only to New York’s staggering $3.2 billion. The state has also pulled in over $4.3 billion in gross revenue, trailing only New York and New Jersey.

The findings highlight Illinois’ prominent role in a rapidly growing industry that has become a major revenue generator for states. Since the U.S. Supreme Court cleared the way for legal sports betting in 2018, 38 states and Washington, D.C. have launched legal markets, collectively generating $9.3 billion in taxes.

For Illinois, with major sportsbooks operating both in-person and online, the state has capitalized on a large sports fanbase, especially in Chicago, and on policies that have encouraged mobile betting.

But the boom comes with a cost for bettors. The study found that the average NFL better loses between 8% and 9% of their wagers, amounting to roughly $209 lost per person. In 2024 alone, U.S. bettors lost $13 billion to sportsbooks — a loss rate of 8.7% on $149 billion wagered.

Top 5 States by Sports Betting Tax Revenue:

1. New York – $3.26 billion

2. Illinois – $958 million

3. Pennsylvania – $772 million

4. New Jersey – $657 million

5. Ohio – $407 million

Top 5 States by Gross Revenue:

1. New York – $6.4 billion

2. New Jersey – $5.1 billion

3. Illinois – $4.38 billion

4. Pennsylvania – $3.38 billion

5. Nevada – $2.9 billion

Here are the full results of the study: Sports Betting Tax Revenue by State | The Motley Fool.