Breaking down GGR and why it is so high in US sports betting

Júlia Moura August 20, 2024

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Breaking down GGR and why it is so high in US sports betting

The sports betting industry is growing in the United States, reflecting one of the most popular trends in the global gaming scene. Since the legalization of sports betting in 2018, when the US Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA), the American market has seen a lot of growth. In just five years, annual gross gaming revenue (GGR) skyrocketed from $400 million to $11 billion in 2023, highlighting the country as one of the leading global players in this sector.

The GGR, an acronym for Gross Gaming Revenue, is a key indicator to understand the performance of the sports betting sector. It represents the total amount of money wagered minus the winnings distributed to players. For example, if in a casino a player bets $1 million and wins $900,000, the resulting GGR would be $100,000. This concept is essential for measuring the profitability and financial health of the gaming marketplace.

Gross gaming revenue in the United States has increased very rapidly from $0.4 billion in 2018 to $0.9 billion in 2019, $1.5 billion in 2020, $4.3 billion in 2021, $7.5 billion in 2022, to reach the current figure of $11.0 billion in 2023.

Since the 2018 decision, states such as Nevada, New Jersey, and Pennsylvania have led the growth of sports betting in the US. Nevada, driven by Las Vegas, is one example. In the first four months of 2024, the state generated more than $5 billion in commercial gaming revenue, which includes sources other than sports betting. New Jersey and Pennsylvania also stood out, each generating more than $2 billion over the same period. These numbers reflect the strong sports culture, regulatory frameworks, and early adoption of legalisation in these states.

The impact of legalisation is evident in both the numbers and the geographic expansion of the market. To date, 38 states and the District of Columbia have legalised sports betting.

The future of sports betting in the United States is positive, with economic, cultural, and legal factors driving the industry. With more states legalizing and revenues on the rise, the country is establishing itself as one of the largest sports betting markets in the world.