How Much Could Utah Sports Betting Be Worth?

The future of Utah sports betting is, for now, nonexistent.

Emphasis on for now.

Although The Beehive State maintains a hardline stance against legal sports betting in the United States, their position can always change. After all, plenty of other states have opposed wagering in the past only to green light it later.

In fact, at this writing, the vast majority of the United States now allows some form of legal sports wagering. Following the passage of a Missouri sports betting bill in November 2024, 39 states offer at least one type of approved wagering. That number is only expected to climb, too. Markets such as California, Minnesota, Oklahoma and Georgia, specifically, are identified as states that could enter the legal sports betting business at some point over the next two years.

Of course, when it comes to Utah sports betting, the discussion is quite different. There are forces at play unique to this state alone. However, the rising popularity of sports betting in the United States acts as a catalyst for recalibration.

Granted, it isn’t the only catalyst. Other factors are at play. Many of them, actually. Chief among these considerations, though, will invariably be the prospective financial benefits. In other words: How much might sports betting in Utah be worth to the state?

Does the Utah Sports Betting Market Have Mass Appeal?

The Utah sports betting market is often looped into smaller business buckets. This makes sense. They are No. 30 out of 50 states in total population, according to StatsAmerica.org.

And yet, much smaller markets have legalized sports betting. Rhode Island, Maine, New Hampshire and Delaware are just a few of the states that have approved wagering while boasting a population that is 1 million people smaller than the 3.4 million residents who call Utah home.

The idea that sports betting in The Beehive State will not foment enough interest rings even hollower when you consider the in-market draws. States such as Maine do not have any pro sports franchises or powerhouse collegiate programs. Utah, on the other hand, includes plenty of both. Especially the former. The Beehive State is now home to the Utah Jazz (NBA), Utah Hockey Club (NHL), Real Salt Lake (soccer) and Utah Royals FC (soccer). They even introduced a professional rugby team, the Utah Warriors, in 2017.

Skeptics will maintain that Utah still doesn’t have a pro club in two of the three most popular leagues in North America: The NFL and Major League Baseball. That is fair. But Utahns are centrally located enough to extensively follow teams in surrounding states. Notably, the Denver Broncos (NFL) and Colorado Rockets (MLB) are among the most popular squads that Utahns tend to follow.

Projecting Potential Sports Betting Revenue in The Utah Jazz

So we have established that a theoretical Utah sports betting market has both the population and sports interest to turn a sizable profit. But what exactly might that mean?

The answer largely depends on what Utah sports betting legalization may look like. What is the tax rate? And will online sports betting in Utah be legal? Or will it be limited to on-site operators?

For our analog, we are going to use sports betting in Kansas. This state feels like a reasonable proxy for a number of reasons. They have a similar population size (around 3 million) and a similar amount of in-market sports teams. Kansas only recently launched online sports betting within the past couple of years as well. So, their current returns are not inflated by long-standing offerings.

What’s more, The Sunflower State’s tax rate checks in at 10 percent for both online and retail sportsbooks. That is definitely a number the Utah sports betting market could command. Heck, they might even be able to aim higher. For our purposes, though, let’s stick with 10 percent.

Through the first nine months of 2024, which covers all publicly available data, the Kansas sports betting market has generated a little over $8.8 million in tax revenue. This comes out to almost $1 million per month.

Mind you, Utah sports betting could technically earn more. Relative to their population size, a 10 percent tax rate would result in $1.2 million of revenue per month, if they follow the Kansas model. And this comes out to over $14 million in additional revenue per year.

That is not the kind of financial infusion policymakers typically ignore. It can represent additional funding or it can allow the state to offset taxes elsewhere (like property taxes). All of which raises the question…

Why Utah Sports Betting Remains Illegal

The legalization of sports betting is never as simple as financial projections seem. There are trade-offs to all the upsides. Most critically, lawmakers worry about the impact legal Utah sports betting will have on gambling addiction and predatory advertising practices. This is the case for every market, even those that have legalized wagering.

No amount of pre-planning will offset these downsides. Other states allocate funds for problem gambling prevention and treatment. But that doesn’t eradicate the issue in its entirety. Lawmakers must ultimately believe the upsides—which include a regulated market—outweigh the drawbacks.

Most of the United States has now deemed legal sports betting is safer and better than keeping it illegal. For Utah, though, this is not just an either-or proposition. Their opposition is deeply rooted in the conservative religion that prevails throughout the region, specifically among the Mormon population. While we have seen devoutly religious groups walk back sports betting opposition over the years, this is not necessarily one of them. That could, obviously, always change. But as we enter 2025, the prospects of Utah sports betting getting legalized anytime soon are bleak—regardless of how much revenue the state seems to be leaving on the table.

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: