New GeoComply Study Support US Online Sports Betting Expansion

As the NFL regular season transitions into the playoffs, attention is turning to the legislative arena, where sports betting is set to be a key topic in state sessions. With lawmakers reconvening, several states could be preparing to address the legalization of online sports betting, and a GeoComply study shows which states would benefit the most.

A mobile phone displaying the DraftKings Sportsbook app. (Source: Getty Images)
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GeoComply's study sheds light on the untapped demand for legal online sports betting in seven states: Texas, Nebraska, Alabama, Georgia, Minnesota, South Carolina, and Mississippi. GeoComply's analysis highlights the substantial number of attempts by residents in these states to access legal sportsbooks, even though such platforms are currently unavailable in their jurisdictions.

Related: US Senate Committee to Discuss Sports Betting

This geolocation data serves as a direct measure of the latent demand for regulated sports betting. One notable example comes from South Carolina, where a sharp increase in attempted account activity correlates with North Carolina's launch of statewide mobile sports betting in 2024. This pattern indicates that residents of South Carolina are eager for the same legal betting opportunities enjoyed by their northern neighbors.

The recent NFL season provided further insights into consumer behavior in these unregulated states. GeoComply's data from active legal markets suggests a significant uptick in engagement during the playoffs, mirroring trends from the regular season. This growth underscores the continuing demand for sports betting as a mainstream form of entertainment, further bolstering the case for legislative action in these states as they deliberate legalization in 2025.

In states without legal sports betting, potential bettors often turn to unregulated platforms, which can pose significant risks. These platforms lack the oversight and accountability of regulated operators, leaving users vulnerable to fraud, exploitation, and inadequate responsible gaming measures. GeoComply's research underscores the importance of regulatory frameworks to protect consumers and ensure access to secure, transparent betting environments.

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Nebraska the Big Loser

Nebraska presents a particularly compelling case, where a notable cross-border betting trend has emerged. Residents of Omaha frequently cross into Iowa, where sports betting is legal, to place wagers during the NFL season.

This phenomenon, which GeoComply has dubbed "The Busiest Cornfield in Iowa," resulted in more than 326,000 geolocation checks and over 2,800 active sportsbook accounts in this rural area. This trend not only highlights the demand for sports betting but also underscores the revenue lost by Nebraska to its neighboring state due to the lack of local legalization.

Cross-border betting is not unique to Nebraska and Iowa. Similar patterns have been observed in other parts of the country, where residents of unregulated states travel to nearby regions with legalized sports betting.

This behavior has motivated states like New York and Kentucky to address the issue by implementing their own regulated frameworks, capturing revenue and providing consumer protections that are absent in unregulated markets.

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