Which States Could Have the Biggest Sports Betting Markets in the Future?

Legal sportsbooks across the U.S. took in close to $150 billion in bets during 2024 and pulled in $13.71 billion in revenue. The NFL alone is expected to generate roughly $30 billion in legal wagers this season, according to the American Gaming Association. But future market leaders won't be decided just by how many people live there.

The states at the top tend to check a few boxes: mobile betting works statewide, fans actually care about local teams, population sits in dense metros, and the rules let operators compete. Several big states still haven't legalized, and one of them flipping will shake up the whole board.

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The Biggest Untapped Markets

Sports betting is still illegal in Alabama, Alaska, California, Georgia, Hawaii, Idaho, Minnesota, Oklahoma, South Carolina, Texas, and Utah. Legalization in any of the big ones could change everything.

California is the biggest prize still on the board. Nearly 40 million people call California home, more than any other state. The 2022 ballot initiative was the last serious attempt at legalization, which failed after tribal casinos and cardrooms couldn't agree on market structure. Since then, tribal casinos and cardrooms have been fighting over who gets to run sports betting and how the whole thing gets set up. Most people watching this space think another ballot attempt will happen in 2026, but nobody's putting money on the exact timing. California finally opening mobile betting with multiple apps won't just add another market. It'll create a tier by itself.

Texas deserves equal attention. The state has 31 million people, second only to California. Between NFL teams, NBA franchises, MLB clubs, NHL squads, and college football that fills stadiums every weekend, Texas has year-round sports action and passionate fans across all the major leagues.

Legislative fights keep blocking progress, but most Texans want it legalized. A University of Houston survey found 60% of Texans back online sports betting. Should Texas legalize and open statewide mobile access, major sportsbook operators would likely enter the market aggressively. Betting platforms typically launch in new states with generous welcome bonuses, robust live wagering platforms, VIP reward structures, and other promotional tools designed to capture market share quickly. Once the legislature figures it out, Texas will become a top-two or top-three market based purely on size and fan engagement (source: https://esportsinsider.com/us/gambling/texas-sports-betting).

Georgia presents a different growth scenario. The state has around 11 million residents and ranks in the top ten nationally. Atlanta's got teams across all the major leagues, and college football brings in massive interest statewide. Georgia's also growing faster than most states. A mid-sized Georgia market would still put up a bigger handle than a lot of states already operating.

States Already Proving the Model

A few states already show what massive sports betting markets look like, and they're not done growing.

New York runs the show right now. Handle hit $23.94 billion in fiscal year 2024-2025, which set a new record. October 2025 alone produced $2.64 billion. New York's been operating for years, but the numbers keep climbing as casual bettors place more frequent wagers and occasional bettors become regulars. Big markets don't top out early, they build momentum.

Illinois sits near the top, too. Handle topped $14 billion in 2024 and produced roughly $1.2 billion in revenue. Monthly figures throughout 2025 show the state continues to hit new peaks. How much room there is to grow stands out about Illinois. More same-game parlays, smoother in-play betting, deeper ties to Chicago's pro teams, all of that can push the numbers higher.

Ohio's newer, but it is moving fast. Through November 2024, Ohio processed close to $8 billion in handle, behind only the top three states. The state keeps posting billion-dollar months in 2025. Adoption staying on this trajectory means Ohio's going to sit near the top of the second tier for a long time.

Florida's Unique Situation

Florida has over 23 million residents, which makes it one of the largest states in the country. Unlike California and Texas, Florida already runs statewide mobile betting. The difference is how it's structured. Florida operates through a single app tied to the Seminole Tribe's Hard Rock Bet. That setup cuts out the promotional wars and operator competition that push handle higher in other states.

Florida's ceiling is still massive. A big population that keeps growing, tourists year-round, and sports happening in every season. The real question isn't about legalization but about the single-operator model sticking around or not. Florida ever opening up to multiple operators could mean the market jumps from big to dominant almost overnight. That's the moment competing bonuses show up, aggressive promotions start running, media partnerships get signed, and real fights for customers begin.

Regulations and Competition Matter Most

The gap between big markets and small markets comes down to betting access and operator competition more than fan passion. States that let people bet on their phones without friction and have multiple brands scrapping for shares see handles spike fast. You can watch this play out in real time across the country.

New York keeps posting record months because the state has dense population centers, mobile betting works smoothly, and nine operators compete for customers. Illinois keeps pushing annual totals higher for the same reasons. The distance between these established markets and smaller ones expands each year, which creates steep challenges for states that legalize later.

Future massive markets will emerge from two scenarios. First, a huge state that's been illegal finally opens with full mobile access. California and Texas sit in this category, and either one going live reshapes the entire national market overnight. Second, a big state that's already legal adjusts its competitive structure. Florida fits here, and the moment it shifts from single-operator to multi-operator, the handle could explode.

States that launch late need mobile betting and a full operator lineup from day one to compete with established leaders. The population alone won't cut it. Texas has 31 million people, but those numbers only matter once mobile betting goes live and operators can compete freely. The states that combine size with smart regulations and real competition between operators will dominate the next phase of sports betting growth. Market leaders are built on access and competition, not just hype about sports fans.

I (AKA CatBurg) have a lifelong passion for sports, especially football and basketball. I enjoy the thrill and excitement of sports betting and everything in between. My teams are (Packers #GoPackGo) and who I am betting on!