College Sports Help Drive Record Revenues But Sportsbooks Can Find US Market Tough
By Carter Quinn
Last Updated on March 10, 2026
A wide-ranging survey of US college students conducted a couple of years back found that close to two-thirds of those students would bet on sports regularly. The figures, while considered startling by some, are not a huge surprise, given the relationship between sports betting and specific events, not least college basketball’s March Madness, which famously drives massive betting volumes across the country.
College sports, in general, have helped fuel the legal gambling boom, with revenues going from circa $430 million (before the Supreme Court’s 2018 decision on sports betting) to over $15 billion (approximate figures for 2025) today. While some analysts will disagree on the exact numbers, the market is expected to continue to rise at a steady clip into the 2030s. This is, of course, aided by the expansion of more states into legal sports betting. North Carolina is a good example of a state that has added to the sports betting boom, coming after it was legalized in March 2024.
Fanatics Sportsbook among the recent ‘winners’
For operators, there is obviously a drive to secure a share of this pie, but despite the potential rewards, it’s not always an easy market in which to succeed. Most states have a limited number of licenses, and the market can become dominated by a handful of big players, notably FanDuel and DraftKings sportsbooks.
A report by Casino.com on Fanatics Sportsbook entering Washington D.C. after receiving a license perfectly describes the market boom and challenges. While Fanatics, buoyed by a strong brand, has been a rapid expander, others, such as Sports Illustrated Sportsbook, have had to shutter operations.
Scrutiny on college player prop betting
Of course, while college sports help drive betting volumes, it is also driving scrutiny on operators. Several states have moved to ban player prop bets in college sports, which can impact the number and types of markets offered by sportsbooks. There are also tax considerations, with New York, in particular, taking a hefty share (up to 51%) of sportsbooks’ revenues.
Another area where sportsbooks face tough competition is prediction markets. These relatively new platforms have historically been linked to cryptocurrency, though they are becoming more mainstream. In essence, you can create a market for anything, with wagers settled on “for and against” percentage principles. They tend to be less regulated than sports betting sites, however, and are coming under increasing scrutiny from the media.
The market still has time to change
All of this points to an uneven market, one where the winners and losers have yet to fully emerge. Yes, we can point to brands like FanDuel, which has publicly reported as holding 43% of online sportsbook revenue across the entire US market, as winners, but there is still some room for sportsbook operators to carve out some of the market. Fanatics, for example, has been a success story in challenging the big two (FanDuel and DraftKings) in several markets. And as mentioned, the sustained growth that has been predicted means finishing third is no bad thing.
It is likely that the market continues to be somewhat volatile before settling. We expect more regulation across multiple states, including clarity on the legal status of prediction markets. Eventually, though, we will soon see some standardization, a consistency of rules across the state as legislators see what works and what doesn’t. Some sportsbook brands won’t make it, whereas others will thrive, eventually.
