Sports betting is now legal in a majority of states (currently legal in 39 states and the District of Columbia, in one form or another, as of this writing). The number of Americans participating in this multi-billion dollar business is growing rapidly year over year. According to a new BW survey, 1 in 5 Americans (20%) say they’ve bet on sports (excluding dog or horse races) in the past 12 months. This is compared to our December 2023 survey, where we found that 12% of Americans had placed a sports bet in the previous 12 months, representing an increase of about 67%.
The December 2024 survey of more than 2,000 U.S. adults, commissioned by BW and conducted online by The Harris Poll, asked Americans whether they placed a sports bet over the past 12 months. Those who did are referred to as “sports bettors” throughout this report. We also asked how much they spend on gambling and their reasons for participating in sports betting.
Key findings
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Sports bettors gamble thousands, on average, per year. Americans who bet on sports in the past 12 months say they’ve spent $3,284, on average, on gambling during this time, which could be a combination of sports betting and other gambling. (The median spending is lower, at $750.) The top motivation for sports bettors? The survey found 65% participate to make extra money.
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Some are taking on debt to gamble; others consider it an investment. Around 1 in 7 sports bettors (14%) say they’ve gone into debt to gamble. And close to a third of sports bettors (31%) view gambling as an investment.
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Some sports bettors resolve to bet more in the new year. Nearly 3 in 10 sports bettors (29%) plan to increase the amount they bet this year compared to 2024.
“While successful gambling can be a form of extra income, it’s important to ensure you have your financial priorities in order before you take those risks,” says Elizabeth Ayoola, personal finance expert at BW. “That means having a sufficient emergency fund in place, contributing enough to workplace retirement plans to capture an employee match and paying down high-interest debt.”
Sports bettors gambled thousands, on average, this past year
When asked how much they spent on gambling in general in the past 12 months, sports bettors reported spending $3,284, on average, though the median was much lower at $750. When looking at gamblers overall — Americans who gambled on anything, not just sports, in the past 12 months — they spent just $1,827, on average, on gambling in the past 12 months.
So what’s the motivation? Nearly two-thirds of sports bettors (65%) say they participate in sports betting because they want to make extra money.
For some, sports betting is a fun thing to do with friends and family members (53%). And as long as betting isn’t putting your personal finance goals at risk or otherwise causing you problems, it can be an enjoyable hobby or social activity. But if losing those bets isn’t in your budget, it may be time to reevaluate your gambling spending.
What you can do: Set a budget and keep expectations in check
Just like you might set a budget for grocery or clothing spending, it’s a good idea to set a cap on how much you bet each month to ensure you aren’t risking more than you’re reasonably able to lose.
“If you’re going to gamble, budgeting for it can be a smart financial move,” Ayoola says. “If you’re using the 50/30/20 budgeting framework, the money for gambling can come out of the 30% bucket which is allocated to wants. Budgeting is a way to create guardrails around your gambling finances, which can help you avoid debt and manage risk.”
It’s possible to make money from sports betting, but it’s a gamble. If you’re looking for more consistent ways to bring in extra cash, check out these ideas to make money online, offline and at home. And always avoid betting more than you can afford to lose in case a wager doesn’t go the way you plan.
Around a third of sports bettors see gambling as an investment
Plenty of sports bettors seem to be keeping their bets in check: According to the survey, more than 2 in 5 sports betters (44%) say they rarely make bets larger than $20 and a third of sports betters (33%) say they budget gambling into their monthly expenses. But some bettors may be jeopardizing their finances.
The survey found that 14% of sports bettors have gone into debt for gambling and 31% consider gambling to be an investment. While yes, you may win money — 40% of sports bettors say they’ve had net gains in the past 12 months — it’s high risk when compared to something that historically offers slow, long-term growth, like investing in a well-diversified index fund. And going into debt for gambling can indicate problematic financial behavior, just like going into debt for any nonessential spending.
When it comes to the taxes of gambling, just 24% of sports bettors say they report proceeds as taxable income and 14% say they write off some gambling losses.
Reporting gambling winnings as income is required for all taxpayers, regardless of whether they receive Form W-2 G or not. Itemizing deductions is an option for taxpayers, but it is important to ensure that all gambling winnings are accurately reported.
For confidential assistance with problem gambling, contact the National Problem Gambling Helpline at 1-800-GAMBLER, text 800GAM, or chat online with a representative. This service is free and aims to provide support to individuals struggling with gambling addiction.
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