I asked Gemini about how much Americans are losing to sports betting in 2026. I have never placed a bet this way, I used to go to Vegas in the ’80s and would limit my losses to 100 bucks a trip. It was my version of paying for entertainment.
Americans are expected to lose an estimated $12 billion to $14 billion on legal sports betting in 2026. This aggregate loss, known as Gross Gaming Revenue (GGR), reflects the difference between the total money wagered and the amount paid out in winnings. The aggregate GGR across all legal forms of gambling (including sports betting and iGaming) regularly tops $130 billion annually.
Driven by a higher average “hold” percentage for sportsbooks—which recently rose from roughly 9.3% to over 11%—and monthly handles regularly exceeding $13 billion to $15 billion, Americans are actively losing billions each month to sportsbooks.
The financial impact extends beyond direct betting losses, bringing broader consequences for household wealth:
- Investment Reduction: Studies show that for every dollar deposited into a sports betting app, users reduce their traditional investment and brokerage deposits by about 20 cents.
- Credit Impacts: Research indicates that the legalization of online sports betting increases household bankruptcy filings by up to 28% and raises loan/credit card delinquencies as consumers chase losses.
- New Tax Burdens: Tax law changes are impacting bettors nationwide, as federal caps on gambling deductions force many to pay taxes on “phantom income” generated by winnings, even if their year-end totals result in a net loss.