Billions in tax revenue would be generated if all 50 US states legalized sports betting, according to a report from the Tax Foundation complaints.
If all states established statewide gaming markets, the Tax Foundation estimates that gross gaming revenue (GPR) would increase by $15.6 billion annually.
If all 50 states established legal and open statewide sports gaming markets, a 10% GGR tax would generate an additional $1.6 billion per year in tax revenue.
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– Tax Foundation (@TaxFoundation) January 22, 2026
This figure is more than double what is currently reported, and legal sports betting in all states would generate $1.6 billion in tax revenue annually, assuming a 10% GGR tax.
Although most states legalize sports betting in one form or another, only 30 states allow bettors to use online betting platforms.
If legalization occurred in all states, the largest tax revenue gains would occur in California ($570 million), Texas ($326 million), and Florida ($199 million), contributing significantly to the economy.
Could we see sports betting legalized in all states in the future?
Missouri became the latest state to legalize sports betting, with the first state-regulated sports betting will go live towards the end of last year.
That now leaves 11 states where sports betting is not legal: South Carolina, Hawaii, Georgia, Alabama, Alaska, California, Texas, Oklahoma, Minnesota, Utah and Idaho.
Even though California and Texas would be the two largest generators of tax revenue if sports betting were legalized, some of the smaller states would still generate millions.
Hawaiifor example, would generate $11 million in tax revenue annually, despite a small adult population within the state.
Idaho The country also has a smaller adult population than other states, but it would likely generate about $13 million in tax revenue annually.
Even Alaskawith a third of the population confined to rural areas, would be able to generate $6 million in tax revenue, although the state does not have any professional sports teams in the state.
Of these 11 states, only Georgia has an active legislature regarding the legalization of sports betting, suggesting that there is much work to be done to ensure that all 50 states can benefit from additional tax revenue.
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