2024 Oregon Sports Betting Tax Revenue on Pace Exceed 2023 Profits

Will 2024 go down as a banner year for Oregon sports betting?

It sure is starting to seem like it.

Ever since sports betting in Oregon launched, the state has seen a regular increase in the amount of money that’s being wagered. As we close out the 2024 calendar year, The Beaver State is currently on track to have their busiest 12-month period yet.

Will this current pace hold? And what is behind this years-long uptick in Oregon sports betting interest? Let’s explore.

Oregon Sports Betting Has Already Set Yearly Revenue Records

To this point, we have 10 months of Oregon sports data for 2024. The Oregon Lottery, which oversees sports wagering, has released earnings reports through October. And with two months’ worth of data to go, The Beaver State has already set a record for both sports betting handle and revenue.

Thus far, the Oregon sports betting handle (i.e. total amount of money wagered) sits at $687.1 million. That is more than $11 million over the previous record of $675.9 million, which was actually set in 2023.

This gap is only going to grow, too. If the Oregon sports betting handle holds the present monthly average of $68.7 million, it will reach $824.5 million by the end of 2024. That is a massive year-over-year increase—more than 21 percent compared to 2023.

What’s more, the handle isn’t the only thing trending up. Last year, Oregon sports betting tax revenue checked in at $29.3 million. At the time, it marked a record for the state. But not anymore.

Through October, Oregon has earned $38.4 million in total sports betting revenue. That is already a whopping 31 percent year over year increase. And again, the gap will only grow.

While sports betting revenue isn’t typically as linear as handles, we can still use Oregon’s monthly average as a baseline. The Beaver State is averaging a little over $3.8 million in taxes per month so far. Across a full calendar, this comes out to $46.1 million in total revenue. And if they reach that milestone, they will have beat returns from 2023 by…a ridiculous 57.3 percent.

What is Driving the Massive Increase in Sports Gambling Revenue for the Beaver State?

For markets that have offered sports betting over the longer term, interest may plateau. Theoretically, Oregon sports betting falls under this umbrella. They legalized wagering all the way back in 2019—more than a half-decade ago.

Yet, online sports in the United States remains a growth industry overall. Even in markets that have offered it since the Supreme Court of the United States overturned the Professional and Amateur Sports Protection Act in 2018, the novelty has yet to wear off. After all, five or six years is but a drop in the bucket for entire industries.

Sure, there will inevitably be a cap. But as Joni Auden Land writes for Oregon Public Broadcasting, The Beaver State is not on the verge of peaking anytime soon:

“Sports betting, in general, has become a more mainstream part of American culture in recent years. Many stadiums even have on-site sportsbooks so fans can gamble on the game, at the game. In Oregon, sports betting has quickly become one of the state Lottery’s most popular products since it first became legal in 2019, with the number of players increasing by 43 percent from 2022 to 2023. [Data for increases in 2024 will not be available until after the year is officially over.] Oregonians wagered more than $675 million on sports betting during the last fiscal year. That’s more than all the money spent on Powerball, Mega Millions, Keno and Scratch-it tickets combined. Bettors wagered an average of $5,603 total during the previous fiscal year, according to Oregon Lottery data.”

These numbers tell a story for both Oregon sports betting as well as sports betting throughout the United States. What was once an illegal industry is now a fast-rising, fully regulated one.

How Much Longer will Interest in Oregon Sports Betting Remain on the Rise?

There is no exact answer to this question. Clearly, the Oregon sports betting market will bet out of runway for growth at some point. But the uptick is so steady and stark now, The Beaver State’s penchant for resetting records each year doesn’t seem like it will be going anywhere anytime soon.

On top of that, Oregon has other cards to play after interest plateaus. Mainly, they can consider raising the Oregon sports betting tax. At the moment, they do not have a public tax rate. The amount paid is calculated based on how much online sportsbooks in Oregon earn. 

Now, if The Beaver State wishes, they could look to implement a flat fee. That is the standard throughout the industry. Going that route removes the possibility of higher tax percentages for bigger earners, but it also guarantees the state a baseline share.

Plus, tax rates for online sportsbooks in the United States can get pretty high. For instance, sportsbooks in New York give the state more than 50 percent of their profits. Granted, Oregon does not have the market leverage to demand sportsbooks pay a 50 percent tax. They rank outside the top half of the total population, and top online sportsbooks in the U.S. aren’t always breaking down the door to enter non-glamour markets.

Then again, Oregon has plenty of sports teams that guarantee longstanding interest. They should absolutely be able to, as an example, match the Pennsylvania sports betting tax rate of 36 percent. Failing that, at this growth rate, online operators probably wouldn’t scoff at a tax rate similar to that of Ohio sports betting (20 percent).

Whether Oregon ever raises sports betting taxes is a matter of course. For now, though, they needn’t rush. The Oregon sports betting market is clearly still growing as currently constituted. There’s no need to rush any prospective changes.

Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs: