Sports betting has allowed states to bring in an extra $9 billion in tax revenue since the U.S. Supreme Court ruled in 2018 that states could legalize the practice.

To date, sports betting is legal in 38 states and Washington, D.C., but the exact amount of tax revenue varies significantly by state, according to a new report from The Motley Fool.

Why It Matters

Sports betting companies handle about $150 billion in wagers each year, and states are looking to enact new taxes to take advantage of it.

Illinois imposed a .25-per-bet tax on the first 20 million bets and .50 on wagers after that, leading to FanDuel adding its own .50 surcharge on all wagers.

While the taxes cut into the earnings of sports betting companies, states can benefit from the extra funding courtesy of the taxes.

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