GeoComply Reveals Strong Activity in Users from States Currently Banning Sports Betting
GeoComply, in charge of implementing a virtual perimeter or fence around a geographic area for purposes of regulation, recently reported that the users of several US states showed robust online activity, especially during the NFL season - and this is where online sportsbooks cannot currently operate. The 2024 NFL regular season not only delivered gripping on-field action - it also highlighted the increasing appetite for legal online sports betting in states where sports betting activities are still prohibited. According to a recent report from GeoComply, a renowned geolocation service provider for regulatory purposes, millions of would-be sports bettors in seven states attempted to access online sportsbooks despite legal restrictions. Robust activity in non-regulated states GeoComply's analysis reveals significant geolocation activity from Georgia, Alabama, Mississippi, Minnesota, Nebraska, Texas, and South Carolina - states where online sports betting remains unlawful. While Nebraska and Mississippi both permit in-person sports betting, their reluctance to embrace mobile wagering leaves a considerable market underserved. Between September 5, 2024, and January 5, 2025, GeoComply registered more than 33.4 million check requests from computers and mobile devices in these seven states. Using its proprietary PinPoint technology, which can locate devices within a range of just four feet, GeoComply identified millions of attempts to access legal sportsbooks from these regions, showing the demand for a regulated online betting market. Legislative momentum building As state legislatures prepare for their 2025 sessions, the topic of sports betting is likely to feature prominently on the agendas in several of these jurisdictions. GeoComply officials emphasize that the demand for legal sports betting is clear and argue that a regulated market would generate much-needed tax revenue while offering consumer protections against unregulated offshore sportsbooks. "This data underscores the substantial unmet demand for legal [online] sports betting in these states," stated the GeoComply release. "The demand seen during this past NFL season shows no signs of slowing as we head into the playoffs and the Super Bowl in February. Early trends from legal markets reveal significant increases in activity compared to last year's playoffs." Mississippi and Minnesota leading the way Among the seven states analyzed, Minnesota is considered a frontrunner to join the 39 states and Washington, DC, that have already legalized some form of sports betting. Mississippi, which already allows in-person betting, is expected to explore legislation to expand its offerings to the online sphere. The heightened interest during the NFL season serves as a reminder of the untapped revenue potential. GeoComply estimates that legalizing online sports betting in these seven states could collectively yield hundreds of millions in annual tax revenue. Projected tax benefits by state Texas, home to over 31 million residents and a fervent sports culture, stands to benefit the most, with a projected $302.4 million in annual tax revenue from online sports betting. Georgia could potentially generate $112.9 million, while South Carolina may secure around $60.1 million. Minnesota and Alabama are projected to earn $59.6 million and $53.3 million, respectively. Nebraska and Mississippi, should they expand into online betting, could see their annual tax revenues increase by $19.9 million and $30.3 million, respectively. A call to action GeoComply's findings provide a compelling case for policymakers to consider the legalization of online sports betting in these untapped markets. Beyond the financial incentives, a regulated market promises to safeguard millions of consumers from the risks associated with unregulated offshore operators. "As lawmakers prepare for the 2025 legislative sessions, the data is clear: demand for legal sports betting is undeniable, and the benefits are far-reaching," GeoComply concluded. "It's time to bring the protections and opportunities of a regulated market to states still on the sidelines." With the NFL playoffs and Super Bowl approaching, early trends from legal markets indicate even greater activity than in previous years. As the nation continues to embrace the expansion of sports betting, the data suggests that the remaining holdout states have much to gain by stepping off the sidelines and into the game.