2025 Sports Betting Trends: What’s Hot in the Gambling World?

Over the past year, 20% of Americans engaged in sports betting, as revealed by a recent survey conducted by NerdWallet. This represents a significant rise from the previous year’s figure of 12%, marking a 67% increase in participation. Currently, sports betting is legal in 39 states along with the District of Columbia, indicating a widespread acceptance and legalization of this practice.

The survey, which included responses from over 2,000 U.S. adults, was carried out online by The Harris Poll on behalf of NerdWallet. It aimed to understand the frequency of sports betting among Americans, their expenditure on such activities, and their motivations behind engaging in betting.

Main Discoveries

• On average, individuals who bet on sports in the last year reported spending approximately $3,284 on gambling activities, with the median expenditure being considerably lower at $750. The primary reason for 65% of the respondents to engage in sports betting was to earn extra income.

• About 14% of sports bettors have incurred debt due to their gambling habits, while almost a third (31%) consider it an investment. Looking ahead, nearly 30% of bettors are planning to increase their betting amounts in the upcoming year.

• Elizabeth Ayoola, a personal finance expert at NerdWallet, advises ensuring financial stability and responsibilities are addressed before indulging in sports betting. This includes having an adequate emergency fund, contributing to retirement plans, and managing high-interest debt efficiently.

Financial Outcomes for Sports Bettors in the Past Year

When questioned about their general gambling expenses over the last 12 months, sports bettors disclosed an average spending of $3,284, though the median value was much lower at $750. The overall motivation for 65% of sports bettors was to augment their income through these activities.

For many, sports betting also serves as a recreational activity with friends and family, with 53% citing social enjoyment as a reason for their participation. However, it’s crucial for bettors to ensure that their gambling habits do not jeopardize their financial goals or lead to financial distress.

What You Can Do: Budget Wisely and Manage Expectations

Setting a monthly betting budget can help maintain financial balance and prevent the risks associated with excessive gambling. Ayoola suggests using the 50/30/20 budgeting framework where gambling expenses come from the 30% allocated for wants. This approach helps in creating a safety net around gambling finances, which can prevent debt and manage financial risks.

While sports betting can occasionally result in financial gain, it remains a risky endeavor. Bettors are advised to explore other more reliable methods of generating additional income and to always bet within their financial limits to avoid potential losses.

Investment Perspective Among Sports Bettors

A considerable number of sports bettors manage their betting expenses effectively; 44% rarely place bets over $20 and a third budget their gambling expenditures monthly. However, 14% have experienced debt due to gambling, and 31% view it as an investment, despite the high risk involved compared to more stable financial investments like index funds.

Regarding tax implications, only 24% of sports bettors report their winnings as taxable income, and 14% claim deductions for gambling losses, which is permissible only for those who itemize their deductions.

What You Can Do: Ensure Financial Health

It’s important for gamblers to secure their financial situation before engaging heavily in betting. Ensuring that debts are paid, emergency funds are saved, and investments are made for the future should take precedence over substantial gambling expenditures.

Responsible gambling should complement, not complicate, financial progression. Setting priorities for spending and saving within a well-planned budget can prevent financial strain and promote a balanced approach to gambling activities.

Prospects for New Bettors in the Coming Year

With the onset of 2025, about 29% of existing sports bettors intend to increase their betting activities. Legislative changes in states such as Missouri, which recently approved online sports betting, could introduce new opportunities and expand the betting landscape.

As sports betting evolves, maintaining responsible betting practices and seeking help for problem gambling, when necessary, remains crucial.

Methodology

The survey data presented here was collected online by The Harris Poll on behalf of NerdWallet from December 3-5, 2025, among a nationally representative sample of 2,092 U.S. adults aged 18 and older. The margin of error for the study is +/- 2.5 percentage points at the 95% confidence level, varying among different segments of the surveyed population.