Surging Demand for Sports Betting in States Without Legal Online Options

As excitement surrounding the NFL playoffs reaches its peak, sports fans in states without legalized online sports betting are actively seeking avenues to place legal wagers. The growing demand for regulated sports betting in these unregulated states highlights the immense potential of the market. Recent data from GeoComply, a leader in geolocation technology, reveals a significant opportunity for legalization in seven states: Texas, Nebraska, Alabama, Georgia, Minnesota, South Carolina, and Mississippi. With legislative sessions for 2025 just beginning, this is an opportune moment for lawmakers to weigh the potential benefits of regulated sports betting.

Demand Revealed Through GeoComply Data

GeoComply's proprietary PinPoint technology tracked over 33 million geolocation requests from residents in these states between September 2024 and January 2025. The data highlights a staggering demand for legal sports betting, with Mississippi—where only retail sports betting is legal—leading the way at nearly 10 million check-ins. South Carolina followed with 7.7 million, and Texas accounted for 4.5 million. This growth in geolocation activity mirrors a broader trend of increasing account registrations, signalling strong consumer interest in regulated betting options.

South Carolina experienced an incredible 437% increase in active accounts, attributed to the recent launch of mobile sports betting in neighbouring North Carolina. This data underscores how legalization in one state can influence consumer behaviour in bordering areas. Alabama and Georgia also reported year-over-year growth, with more than double the number of active accounts compared to the prior year.

Cross-Border Betting: A Trend with Significant Implications

GeoComply's data also shed light on cross-border betting trends, particularly in Nebraska. Residents from Omaha frequently cross into Iowa—where sports betting is legal—to place their wagers. This trend, humorously referred to as "The Busiest Cornfield in Iowa," highlights the lengths to which consumers will go to access legal sports betting. Over 326,000 geolocation check-ins were recorded in rural areas just across the state line.

Similar patterns have been observed nationwide. In states like New York and Kentucky, lawmakers acted to address the economic loss caused by residents crossing borders to bet legally elsewhere. These examples illustrate the high demand for legal sports betting and the potential revenue that states could harness by regulating the market.

Benefits of Legalizing Sports Betting

The GeoComply report also emphasised the broader advantages of legalization, including economic growth and enhanced consumer protection. In states without regulation, residents often resort to illegal sportsbooks, exposing themselves to risks such as fraud and exploitation. Legalization not only ensures a safer betting environment but also provides tools for responsible gaming and fraud prevention.

Financially, the impact of legal sports betting cannot be ignored. Since 2018, regulated markets have generated more than $7.1 billion in tax revenue. For states like Texas, legalization could yield significant financial benefits—potentially generating over $300 million in tax revenue within three years at a minimum 15% tax rate. Minnesota, Alabama, and Texas are among the states expected to introduce or revisit sports betting legislation in the near future, driven by these promising figures.