Sports Betting by State

The United States has undergone a dramatic transformation in legal sports betting since the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in May 2018. That landmark ruling in Murphy v. NCAA returned the authority to regulate sports wagering to individual states, triggering a wave of legalization that has reshaped the American gambling landscape. As of March 2026, 39 states plus Washington D.C. have legalized sports betting in some form, with 32 states offering full online and mobile wagering. The US sports betting market is projected to generate approximately $30 billion in revenue in 2026, making it the largest regulated sports betting market in the world.

This guide provides a complete overview of sports betting legality across all 50 states, covering regulatory frameworks, available sportsbooks, tax structures, and the unique characteristics that define each state market. Whether you are looking for the best sportsbook in your state or researching where legal betting stands before a move or trip, our state-by-state breakdown has you covered.

The Post-PASPA Revolution

Before the Supreme Court ruling, Nevada was the only state where single-game sports betting was fully legal. PASPA, enacted in 1992, effectively prohibited all other states from authorizing or licensing sports wagering. New Jersey led the legal challenge that ultimately brought down the federal ban, and the Garden State became the first non-Nevada jurisdiction to launch regulated sports betting in June 2018 — just weeks after the ruling.

The pace of legalization accelerated rapidly from there. Within 18 months of the PASPA repeal, eight states had launched legal sportsbooks. By the end of 2020, more than 20 states were operational. The momentum has continued through 2025 and into 2026, with Missouri becoming the 39th state to launch legal sports betting on December 1, 2025. Each state has taken its own approach to regulation, creating a patchwork of rules, tax rates, and market structures that vary significantly across state lines.

Key Milestones in US Sports Betting Legalization

• May 2018: Supreme Court strikes down PASPA in Murphy v. NCAA
• June 2018: New Jersey and Delaware launch legal sports betting
• November 2018: Rhode Island, Mississippi, and West Virginia go live
• 2019: Eight additional states launch, including major markets like Pennsylvania, Indiana, and Iowa
• 2020: Illinois, Michigan, Tennessee, Colorado, and Virginia authorize online sports betting
• 2021: Arizona, Connecticut, Florida (Seminole compact), Wyoming, and Louisiana launch
• 2022: New York launches mobile sports betting, immediately becoming the largest market by handle
• 2023: Massachusetts, Ohio, Kentucky, and North Carolina launch; Florida relaunches after legal battles
• 2024: Vermont and Maine launch; North Carolina expands to mobile
• 2025: Missouri launches December 1, 2025

How US Sports Betting Regulation Works

There is no single federal body that regulates sports betting in the United States. Instead, each state establishes its own regulatory framework, designating a commission or board to oversee licensing, compliance, and consumer protection. This decentralized approach means that the rules governing sports betting — from tax rates to permitted bet types to operator requirements — differ substantially from state to state.

Common Regulatory Models

States have adopted several distinct approaches to structuring their sports betting markets:

• Casino-tethered licensing: Most states require online sportsbook operators to partner with a licensed land-based casino, racetrack, or tribal gaming facility. This model, used in states like New Jersey, Pennsylvania, Michigan, and Illinois, ensures that digital operators have physical roots in the state and contributes to the existing casino ecosystem.
• Lottery-operated systems: Some states run sports betting through their state lottery commission. New Hampshire, Oregon, Delaware, Rhode Island, and Vermont use lottery-managed platforms, often resulting in fewer operator choices but higher state revenue shares.
• Tribal compact exclusives: Florida and a handful of other states have granted exclusive sports betting rights to tribal gaming nations through government-to-government compacts. These monopoly structures limit consumer choice but provide substantial revenue-sharing to the state.
• Open market licensing: States like Tennessee and Virginia have adopted more open licensing frameworks that do not require tethering to a physical casino, allowing online-only operators to enter the market. This tends to produce the highest number of competing sportsbooks.

Tax Rates Across the US

Sports betting tax rates vary enormously across legalized states, creating vastly different economic dynamics for operators and state governments:

Tax Rate Range	States	Impact
Under 10%	Nevada (6.75%), Iowa (6.75%), Indiana (9.5%)	Most operator-friendly; attracts investment and competition
10-20%	Michigan (8.4%), Colorado (10%), Arizona (10%), Virginia (15%)	Balanced approach; healthy competition with moderate state revenue
20-40%	Pennsylvania (36%), New Jersey (19.75%), Illinois (progressive to 40%)	High state revenue; may reduce operator promotional spending
Above 40%	New York (51% mobile), New Hampshire (51% rev share)	Highest state revenue per dollar wagered; fewest promotions for bettors

New York stands out with the highest effective tax rate at 51% on mobile sports betting revenue. Despite this, the state generates the most total sports betting tax revenue due to its massive population and handle volume. States like Nevada and Iowa, with rates below 10%, attract more operators and tend to offer bettors more competitive odds and promotions.

States With Legal Online Sports Betting

The following states allow residents and visitors to place wagers using a mobile app or website while physically located within state borders. Most require users to be 21 or older, though New Hampshire, Montana, Wyoming, and Rhode Island permit 18-year-olds to bet.

Full online and mobile sports betting is available in: Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida (Hard Rock Bet only), Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, Virginia, West Virginia, and Wyoming.

States With Retail-Only Sports Betting

Several states have legalized sports betting but restrict it to in-person wagers at licensed physical locations such as casinos, racetracks, or dedicated sportsbook lounges. Online and mobile wagering is not available in these jurisdictions.

Retail-only states include: Mississippi (casino-only, on-premises apps), Montana (lottery terminals at bars), New Mexico (tribal casinos only), North Dakota (tribal casinos), South Dakota (Deadwood casinos), Washington (tribal casinos), and Wisconsin (select tribal locations).

States Where Sports Betting Remains Illegal

As of March 2026, 11 states have not legalized any form of sports betting. Legislative efforts continue in several of these states, but political, cultural, or structural barriers have prevented passage:

• California: The most populous state has been unable to reach consensus. Propositions 26 and 27 both failed overwhelmingly in the 2022 election (68% and 83% opposition respectively), largely due to competing tribal and commercial interests spending over $400 million on campaigns. No new initiative is currently advancing.
• Texas: Despite being the second most populous state, sports betting bills have repeatedly stalled in the Texas Senate. Any legalization would require a constitutional amendment, needing two-thirds approval in each chamber followed by a voter referendum.
• Georgia: Bills have advanced through committee in recent sessions but have not reached a floor vote. The state constitution may require an amendment for full legalization.
• Alabama, Alaska, Hawaii, Idaho, Minnesota, Oklahoma, South Carolina, Utah: These states face varying combinations of political opposition, constitutional restrictions, or lack of legislative momentum. Utah has a constitutional prohibition on gambling that would be exceptionally difficult to amend.

Major US Sportsbook Operators

The US sports betting market is dominated by several large operators that hold licenses across multiple states:

Operator	States Available	Key Strengths
FanDuel	25+ states	Largest market share (~40%), best same-game parlay builder, fast payouts
DraftKings	25+ states	Second largest market share, aggressive promotions, deep prop markets
BetMGM	20+ states	Strong casino cross-sell, MGM Rewards integration, wide bet selection
Caesars Sportsbook	20+ states	Caesars Rewards program, competitive odds, retail presence
ESPN BET (Penn)	18+ states	ESPN brand integration, media-driven engagement, growing market share
bet365	10+ states	International experience, excellent live betting, competitive margins
Fanatics	15+ states	FanCash loyalty currency, retail integration, rapid expansion
BetRivers (RSI)	15+ states	Consistent promotions, iRush Rewards program, strong in smaller markets

FanDuel and DraftKings together command approximately 70% of the US online sports betting market, creating a duopoly that has proven difficult for smaller operators to challenge. BetMGM and Caesars hold the third and fourth positions, while newer entrants like ESPN BET and Fanatics are investing heavily to capture market share.

Betting Age Requirements by State

The vast majority of US states set the legal sports betting age at 21. However, a small number of states permit 18-year-olds to place legal wagers:

• 18+ states: Kentucky, Montana, New Hampshire, Rhode Island (lottery products), Wyoming
• 21+ states: All other legalized states

New Hampshire notably rejected a 2026 proposal (HB 83) to raise its betting age from 18 to 21, with the House Ways and Means Committee voting 11-7 against the bill due to projected revenue losses of $320,000 in FY2026 and $640,000 in FY2027.

Responsible Gambling Resources

Every legalized state requires licensed sportsbooks to provide responsible gambling tools and promote awareness of problem gambling resources. Standard requirements across most jurisdictions include:

• Self-exclusion programs: Allowing players to voluntarily ban themselves from all licensed platforms
• Deposit limits: Daily, weekly, and monthly caps on account funding
• Loss limits: Maximum allowable losses within set time periods
• Cool-off periods: Temporary account suspensions ranging from 24 hours to 30 days
• Reality checks: Notifications showing session duration and net results

The National Council on Problem Gambling (NCPG) provides a nationwide helpline at 1-800-522-4700 and text support by texting GAMB to 833234. Every state also maintains its own problem gambling council with local resources and referral services.

What to Look for When Choosing a Sportsbook

With multiple operators available in most legalized states, choosing the right sportsbook comes down to several key factors:

• Odds quality: Compare lines across platforms for the sports you bet most. Even small differences in odds compound over time. Use our odds converter to compare across formats.
• Welcome bonuses: First-time deposit matches, bonus bets, and risk-free bet offers vary significantly between operators and change frequently.
• Bet types and features: If you enjoy parlays, check our parlay calculator. If you prefer live betting, look for platforms with the fastest in-play markets and cash-out options.
• Payout speed: Withdrawal processing times range from under an hour (e-wallets) to 5+ business days (checks) depending on the operator and payment method.
• Loyalty programs: Ongoing promotions, VIP tiers, and rewards currencies can add substantial long-term value for regular bettors.

The Future of US Sports Betting

The trajectory of US sports betting points toward continued expansion and maturation. Key trends shaping the market through 2026 and beyond include:

• New York online casino legalization: Expected to launch in Q3/Q4 2026, potentially adding $2 billion in revenue and establishing the largest iGaming market in the country.
• Interstate poker compacts: The Multi-State Internet Gaming Agreement (MSIGA) continues to expand, with Pennsylvania joining New Jersey, Michigan, Nevada, Delaware, and West Virginia for shared online poker liquidity pools.
• Micro-betting and prediction markets: New bet types on individual plays and non-sports events are generating regulatory debate across multiple states.
• Responsible gambling regulation: States are tightening advertising rules, limiting promotional credits, restricting credit card deposits, and enhancing self-exclusion tools in response to problem gambling concerns.
• Federal oversight discussions: While unlikely in the near term, there is ongoing discussion about whether federal standards for advertising, data privacy, and consumer protection should supplement state regulation.

For bettors, the expanding market means more choices, better technology, and increasing competition among operators — all of which benefit the end user. The key is to bet legally, bet responsibly, and take advantage of the competitive market by comparing options across licensed platforms.

Frequently Asked Questions

Is sports betting legal in the United States?

Yes, but legality depends on the state. As of March 2026, 39 states plus Washington D.C. have legalized sports betting in some form. The Supreme Court struck down the federal ban (PASPA) in 2018, giving each state the authority to regulate sports wagering independently. You must be physically located in a legal state to place a bet, regardless of where you live.

Can I bet on sports in any state if I travel there?

Yes, as long as the state you are visiting has legalized sports betting. Residency is not required — you only need to be physically located within state borders, verified by geolocation technology on your device. Some states have specific registration requirements that may need to be completed beforehand.

What is the legal age for sports betting in the US?

The legal age is 21 in most states. However, Kentucky, Montana, New Hampshire, Rhode Island (for lottery products), and Wyoming allow 18-year-olds to bet on sports legally.

Do I have to pay taxes on sports betting winnings?

Yes. All sports betting winnings are subject to federal income tax. Sportsbooks are required to report winnings above certain thresholds (generally $600 or 300:1 odds) on IRS Form W-2G. Some states also impose their own income tax on gambling winnings. You should keep records of both wins and losses, as losses can be deducted against winnings when itemizing federal taxes.

Which sportsbook has the best odds?

No single sportsbook consistently offers the best odds across all markets. Serious bettors maintain accounts at multiple licensed platforms and compare lines before placing each wager — a practice known as line shopping. Our individual state guides include odds comparisons for the major operators available in each jurisdiction.

When will California and Texas legalize sports betting?

Both states face significant political obstacles. California requires a voter-approved ballot initiative, and two proposals failed overwhelmingly in 2022. Texas needs a constitutional amendment requiring two-thirds legislative approval. No timeline is certain for either state, though Texas has seen renewed legislative interest in recent sessions.