The sports betting industry in the United States saw explosive growth in 2024, and that has been seen in esports as well.
The biggest development in sports in recent years has been the legalization of sports betting in numerous states. Even in states where the ban hasn’t been lifted, the ramifications have been felt. Ads for sportsbooks have popped up everywhere in sports, whether it’s seeing the TV commercials at home or seeing the logos plastered everywhere in the arenas.
Fans have voiced frustration with this, but there’s no sign of it slowing down. This has extended to esports too, where longtime holdouts have thawed on blocking sports betting sponsorships. With 2024 in the rearview mirror, the industry is offering exact numbers that show why so many hearts are changing.
Sports betting in the United States garnered $13.71 billion in revenue in 2024, per the American Gaming Association. This is up considerably from the $11.04 billion revenue numbers posted in 2023. This makes for a 24% year-over-year increase.
Going further in-depth, approximately $150 billion in bets were placed across the country among legal sportsbooks. Bookmakers had a hold percentage of 9.3%.
Unsurprisingly, the fourth quarter of the year was the most active for bookies and bettors. This is owed to the 2024 NFL season being in progress from Q4 2024 into Q1 2025.
A large chunk of that growth can be chalked up to uptake in the popularity of online sports betting. Though the industry is growing overall, the American Gaming Association acknowledged declining revenue for brick-and-mortar sports betting operations like casinos and physical sportsbooks. This decline was credited to the growing popularity in online sports betting.
2025 may not see the number of markets increase. Missouri is the only state with votes scheduled to increase access to sports betting. While the majority of states have sports betting legal in some capacity, there are still several major holdouts.
There were a few major changes in esports when it comes to the handling of sports betting within esports. The biggest change was Riot Games softening its stance regarding sports betting sponsorships.
The publisher behind Valorant and League of Legends, two of the biggest esports titles, long had a frosty relationship with sports betting. Official leagues did not take on betting sponsors, and Riot prevented other tournament organizers from including betting sponsors. Not only that but organizations were disallowed from taking on betting sponsors in a way that faced League of Legends or Valorant.
That was loosened to some degree, allowing teams to take on betting sponsors. While betting sponsors aren’t thoroughly folded into League of Legends or Valorant yet, that could change before long. Ultimately, Riot Games has been making moves to wring more money out of its esports efforts and this jump in revenue seen around sports betting won’t go unnoticed.
Elsewhere, there has been a marked uptick in the number of Dota 2 and Counter-Strike tournaments. Valve divesting from Dota 2’s pro scene while taking a more hands-on approach to Counter-Strike has had some benefits in this regard. How this impacts the number of esports organizations in each game, and how much more esports betting will happen, is unclear.
Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.
