Current Online Sports Betting Situation in the US
The current online sports betting situation in the USA is one of rapid growth and expansion. Since the repeal of PASPA in 2018, more and more states have legalized sports betting, and the numbers are impressive.
Currently there are 37 states with legal sports betting in the US, plus the District of Columbia. This means that over half of the states in the country now allow sports betting in some form.
In 2020, the US sports betting industry generated a total handle (total amount of money wagered) of over $21 billion, with $1.5 billion in revenue. This represents an increase of over 69% compared to the previous year.
Mobile sports betting is becoming increasingly popular, with over 80% of sports bets in some states being placed online or via mobile devices. This trend is expected to continue, with many states looking to legalize online sports betting in the near future.
The COVID-19 pandemic also had an impact on the industry, as many traditional sports events were cancelled or postponed. However, this led to a surge in popularity for alternative sports, such as esports and virtual sports, which have continued to grow in popularity even as traditional sports have returned.
Overall, the current online sports betting situation in the USA is one of growth and expansion, with more and more states legalizing sports betting and the industry continuing to generate impressive revenue. As the market continues to mature and more states legalize online sports betting, we can expect to see even greater growth in the coming years.
History of Legalization of Sports Betting
The history of legalizing sports betting and online sports betting in the US is a complex one. Prior to 2018, the Professional and Amateur Sports Protection Act (PASPA) prohibited most states from legalizing sports betting. However, in 2018, the US Supreme Court ruled that PASPA was unconstitutional, paving the way for individual states to legalize sports betting.
Since then, many states have moved to legalize sports betting in some form, with some states allowing online sports betting as well. Some of the earliest states to legalize sports betting included Nevada, Delaware, and New Jersey. Other states soon followed, with more than 30 states legalizing sports betting as of 2024.
Online sports betting has also grown in popularity, with many states legalizing online sports betting or at least considering it. Some of the earliest states to legalize online sports betting included New Jersey, Pennsylvania, and Nevada. As of 2024, more than a dozen states have legalized online sports betting.
The push to legalize sports betting and online sports betting has been driven by a variety of factors, including the potential for increased revenue for states and sportsbooks, as well as changing attitudes towards gambling.
| PASPA Overturned | The most significant event in the history of legalizing sports betting was the overturning of the Professional and Amateur Sports Protection Act (PASPA) by the US Supreme Court in 2018. This decision paved the way for individual states to legalize sports betting. |
| Nevada Legalizes Sports Betting | Nevada was the first state to legalize sports betting back in 1949. The state has long been known as the gambling capital of the US and is home to many of the largest casinos and sportsbooks in the world. |
| New Jersey Legalizes Sports Betting | In 2012, New Jersey passed a law legalizing sports betting, but it was immediately challenged by professional sports leagues and the NCAA. The legal battle lasted several years and ultimately went all the way to the US Supreme Court, which ruled in favor of New Jersey in 2018. |
| Online Sports Betting Legalized | Several states have legalized online sports betting in recent years, including New Jersey, Pennsylvania, and Michigan. This has opened up a whole new market for sportsbooks and has made it more convenient for players to place bets. |
| Louisiana and Maryland Legalize Sports Betting | In 2020, Louisiana and Maryland became the latest states to legalize sports betting. This marked a significant expansion of sports betting in the southern US. |
| Tribal Gaming Compacts | Some states have partnered with Native American tribes to offer sports betting on tribal lands. This has allowed tribes to enter the sports betting market and has provided additional revenue for both the tribes and the state. |
| Continued Expansion | As of 2024, more than 30 states have legalized sports betting in some form, and more are expected to follow. This continued expansion of sports betting is likely to drive further growth in the industry and provide additional revenue for states and sportsbooks. |
Where in the US Is Sports Betting Legal?
Sports betting is legal in 33 states in the US, as well as the District of Columbia, with more states expected to legalize it in the near future. Each state has its own set of regulations and requirements for legal sports betting, with some states allowing online and mobile sports betting, while others restrict betting to physical sportsbooks.
It's important to note that while sports betting is legal in these states, online gambling is not legal in every state, so it's important to check the laws and regulations in your area before placing any bets.
New Jersey
New Jersey is a state with a long history of gambling, and it has recently become one of the most progressive states when it comes to legalizing various forms of gambling. In addition to legalizing sports betting in 2018, New Jersey has also legalized a number of other forms of gambling, including online casino games, online poker, and online horse racing betting.
Online sports betting is indeed legal in New Jersey, and it has been since 2018, when the state successfully challenged the federal ban on sports betting in the Supreme Court. Since then, numerous online sportsbooks have launched in the state, offering a wide range of betting options on a variety of sports.
In addition to online sports betting, New Jersey also allows for online casino gaming, with a number of licensed online casinos operating within the state. Online poker is also legal in the state, with several online poker sites available to New Jersey residents and visitors.
Illinois
Illinois has authorized various types of gambling activities, which include land-based and riverboat casinos, horse racing betting, and the state lottery. The state has also recently joined the list of states that allow sports betting, which was legalized in 2019.
As per the state's sports betting law that came into effect in March 2020, online sports betting is now officially authorized in Illinois. Many online sportsbooks have since been launched in the state, providing a diverse range of betting options for a variety of sports.
Apart from online sports betting, Illinois also permits online casino gaming, although this is presently restricted to online sportsbooks collaborating with land-based casinos within the state. As of now, online poker is still not permitted in Illinois, although there are discussions about the introduction of legislation that could change this in the future.
New York
In the bustling metropolis of New York, a bevy of gambling options exist within legal bounds. From brick-and-mortar casinos to betting on horse races and the state lottery, patrons have ample opportunities to indulge in games of chance. Yet, when it comes to the realm of online gambling, the state has lagged behind, offering only paltry options at present.
As things stand, online sports betting is permissible in New York, but only through a restricted number of sportsbooks that partner with the state's land-based casinos. Nevertheless, discourse is underway regarding the expansion of online sports betting in the state, with prospective legislation on the table that could pave the way for a greater number of online sportsbooks to set up shop within the Empire State.
While online horse racing betting is allowed in New York via a handful of licensed platforms catering to both locals and visitors, online casino gaming and online poker remain strictly verboten. Although movements to legalize these types of online gambling have been afoot in recent years, their current status in New York remains off-limits.
Indiana
Indiana boasts a diverse selection of legal gambling options, ranging from land-based and riverboat casinos to horse racing betting and the state lottery. Moreover, Indiana has also embraced the relatively new frontier of sports betting, positioning itself as an early adopter of this type of gambling.
Since September 2019, online sports betting has been fair game in Indiana, and the state has seen a flurry of online sportsbooks hit the market since then. These digital betting platforms offer a cornucopia of wagering opportunities across a broad range of sports. Additionally, Indiana permits online casino gaming, with numerous licensed operators delivering their services to the state's residents.
At present, online poker remains off-limits in Indiana. Nevertheless, dialogue persists concerning the possibility of legalizing online poker in the state in the future.
Pennsylvania
Pennsylvania has a rich selection of legal gambling options, which includes land-based casinos, horse racing betting, and the state lottery. Furthermore, Pennsylvania has taken a progressive stance toward legalizing various types of entertainment, such as sports betting and online gambling.
Since May 2019, online sports betting has been legal in Pennsylvania, and the state has welcomed several online sportsbooks to its market. These platforms offer a vast array of betting options on a variety of sports, providing players with an exciting and convenient way to wager. Pennsylvania also permits online casino gaming and online poker, with a multitude of licensed online platforms operating within the state.
Colorado
Colorado boasts a thriving gambling industry, with numerous options available to both locals and visitors. Alongside traditional offerings like land-based casinos and horse racing betting, the state has also legalized sports betting and online gambling.
Online sports betting has been legal in Colorado since May 2020, with a plethora of online sportsbooks launching in the state. These platforms provide players with a vast selection of betting options across a diverse range of sports. Additionally, Colorado permits online casino gaming, with several licensed online platforms serving the state's populace.
While online poker remains off-limits in Colorado at present, deliberations are underway to explore the feasibility of legalizing this form of online gambling in the future. In the meantime, Colorado's comprehensive range of gambling options provides plenty of excitement for those who enjoy games of chance.
Tennessee
Tennessee is a state with a relatively limited gambling industry, with no land-based casinos or horse racing betting available. However, the state has recently legalized sports betting and online gambling, making it one of the few states in the US with legal online sports betting but no land-based sportsbooks.
Online sports betting is indeed legal in Tennessee, and it has been since November 2020. Since then, several online sportsbooks have launched in the state, offering a variety of betting options on a range of sports.
In addition to online sports betting, Tennessee also allows for online casino gaming and online poker, with a number of licensed online platforms operating within the state. This makes Tennessee one of the few states in the US where online gambling is legal but land-based gambling is not.
Nevada
Nevada is widely regarded as the gambling capital of the US, with a long history of legal gambling and a thriving industry that includes land-based casinos, horse racing betting, and a variety of other forms of gambling.
Online sports betting is indeed legal in Nevada, and it has been for many years. However, the state's regulations are quite strict, with only a limited number of online sportsbooks allowed to operate within the state.
In addition to online sports betting, Nevada also allows for online poker, with several licensed online platforms available to residents and visitors of the state. However, online casino gaming is not yet legal in Nevada, although there are ongoing discussions about the potential for legalizing this form of online gambling in the future.
Michigan
Michigan is a state that has recently embraced legal gambling, with a variety of different forms of gambling now available to residents and visitors. In addition to land-based casinos and horse racing betting, the state has also legalized sports betting and online gambling.
Online sports betting is indeed legal in Michigan, and it has been since January 2021. Since then, a number of online sportsbooks have launched in the state, offering a wide range of betting options on a variety of sports. In addition, Michigan also allows for online casino gaming, with a number of licensed online platforms operating within the state.
Michigan currently prohibits online poker, but there are ongoing talks about the possibility of legalizing this type of online gambling in the future.
Arizona
Arizona boasts a flourishing gambling industry, offering a diverse range of options for both residents and visitors. Along with brick-and-mortar casinos and horse racing betting, the state has recently legalized sports betting and daily fantasy sports.
As of September 9th, 2021, online sports betting became legal in Arizona. Several tribes and professional sports teams have received licenses to operate sports betting, and multiple online sportsbooks are expected to launch in the state soon.
Arizona also allows online fantasy sports, with several licensed platforms currently operating within the state. Nonetheless, online casino gaming and online poker remain forbidden in Arizona. That said, conversations are underway to explore the possibility of legalizing these forms of online gambling in the future.
California
California boasts a diverse and expansive gambling industry that includes an extensive array of land-based casinos, cardrooms, and horse racing tracks. Despite this, sports betting and online gambling are not yet legal in the state, thereby limiting the options for players seeking to bet on their preferred sports or engage in online casino gaming.
Attempts to legalize sports betting in California have persisted for several years, but no concrete legislation has been passed. Similarly, online casino gaming and online poker remain illegal in California, though discussions and proposals for the legalization of these types of online gambling have been put forth.
Although California's gambling industry may not present as many online options as some other states, the land-based casinos and card rooms provide a plethora of gaming opportunities, including slots, table games, and poker.
Iowa
Iowa is a state with a rich history in the gambling industry, boasting a wide array of land-based casinos and horse racing tracks. In addition, Iowa has recently become one of the few states in the US with a fully established legal online gambling industry, having legalized sports betting and online gambling.
Since August 2019, online sports betting has been legal in Iowa, with several online sportsbooks having launched in the state. These platforms provide players with an extensive range of betting options across various sports. Furthermore, Iowa allows online casino gaming, with a multitude of licensed online platforms catering to residents and visitors alike.
Iowa is also one of the few states that permit online poker, with various licensed online poker sites available for players to enjoy. Thus, Iowa has become one of the rare US states where all types of online gambling are legal, offering players a comprehensive range of online gambling options.
Virginia
Virginia has recently taken strides in legalizing various forms of gambling, such as land-based casinos and sports betting. Although online gambling has yet to be fully legalized, the state is making progress towards legalizing online casino gaming and poker.
Since January 2021, online sports betting has been legal in Virginia, with multiple online sportsbooks having launched in the state. These platforms offer players a diverse array of betting options across a variety of sports.
As of now, online casino gaming and poker remain illegal in Virginia. However, conversations are ongoing regarding the possibility of legalizing these forms of online gambling in the future.
Other States
In addition to the states discussed above, there are a number of other states where online sports betting and gambling is legal. These states include Delaware, Michigan, Montana, New Hampshire, Oregon, and West Virginia. Each of these states has its own unique legal and regulatory frameworks for online sports betting and gambling, with varying options for different forms of online gaming.
Where in the US Is Sports Betting Illegal?
While many US states have legalized various forms of gambling, there are still several states where gambling, including sports betting, remains illegal. These states include Alaska, Georgia, Hawaii, Idaho, Nebraska, North Carolina, South Carolina, Texas, Utah, and Vermont.
In some of these states, even participating in offshore sportsbooks or offshore betting can be illegal, with penalties ranging from fines to jail time.
In addition to these states, many others have implemented strict regulations and restrictions on online gambling, making it difficult or impossible for players to access licensed and regulated online gaming platforms.
For example, in states like Washington and Connecticut, online gambling is explicitly illegal and can result in fines or other legal consequences. Other states, such as Maryland and Louisiana, have strict regulations on certain forms of online gambling, while allowing others.
Taxes on Your Winnings
The tax regulation on winnings from online sports betting and online gambling in states where these activities are legal can vary. In general, winnings from online sports betting and online gambling are taxable income and must be reported on your tax return.
The tax rate on winnings from online sports betting and online gambling can vary depending on the state and the amount of the winnings. For example, in some states, winnings from online sports betting are taxed at a flat rate, while in others, the tax rate is a percentage of the winnings. In addition, some states have a threshold for reporting winnings, such as $600 or more.
It is important to note that taxes on winnings from online sports betting and online gambling are typically not withheld by the operator, so it is up to the individual to report and pay the appropriate taxes on their winnings. Failure to report these winnings can result in penalties and fines.
Offshore Sportsbook Sites Online
Betting at offshore sportsbook sites is a common practice among US bettors, particularly in states where online sports betting is not yet legal. However, even in states where online sports betting is legal, betting at offshore sites can be a risky proposition, as these sites are often unregulated and lack the protections and safeguards that come with licensed and regulated platforms.
In states where online sports betting is legal, there are strict regulations and licensing requirements in place, aimed at ensuring that online sportsbooks operate in a safe and responsible manner. These regulations can include restrictions on the types of bets that can be offered, the use of geolocation technology to ensure that bets are placed within state lines, and strict data security protocols to protect users' personal and financial information.
In contrast, in states where online sports betting is illegal, the use of offshore sportsbook sites can carry serious legal and financial risks. In addition to the possibility of fines or jail time for participating in illegal gambling, players may also be subject to fraudulent activity, including theft of personal and financial information, and non-payment of winnings.
Sports You Can Bet on in the US
In states where online sports betting is legal, there are typically a wide range of sports and events available for betting, including popular professional leagues like the NFL, NBA, MLB, and NHL, as well as college sports, international events, and other niche sports.
Many online sportsbooks also offer a wide range of betting options, including traditional moneyline bets, point spread bets, and over/under bets, as well as more exotic options like parlays, teasers, and futures bets. In addition, many sportsbooks offer live betting, which allows players to place bets in real-time as games are being played.
Football
Football betting is a popular pastime for US sports bettors, and in states where online sports betting is legal, there are typically a wide range of options available for NFL betting online.
In many states, including Pennsylvania, New Jersey, and Michigan, online sportsbooks offer a wide range of betting options on NFL games, including traditional moneyline bets, point spread bets, over/under bets, and more exotic options like parlays and teasers.
The demand for NFL betting is particularly high, with millions of fans tuning in to watch games each week and many placing bets on the outcome.
Basketball
Basketball is an immensely popular sport for online sports betting in the US, and in states where online sports betting is legal, a vast selection of options are available for betting on NBA and college basketball games.
Numerous online sportsbooks provide a broad range of betting opportunities on NBA games, from traditional moneyline bets and point spread bets to over/under bets and more elaborate options like parlays and teasers.
Moreover, online sportsbooks also offer a plethora of betting opportunities on college basketball games, spanning regular-season games and the March Madness tournament. While the types of bets and events available for betting may differ from state to state and from sportsbook to sportsbook, the overarching trend is towards a more inclusive and diverse betting experience for players.
Baseball
Baseball is a favored sport for online sports betting in the US, and in states where online sports betting is legal, there is an array of options available for betting on MLB games online.
The desire for MLB betting is particularly high, with millions of fans watching games each week and many placing bets on the outcome. The thrill of baseball games and the intensity of the playoffs make baseball a favored choice for online sports betting.
Ice Hockey
Ice hockey is a prevalent sport for online sports betting in the US, with a wide variety of options available for NHL betting online in states where online sports betting is legal. Many online sportsbooks offer an extensive range of betting opportunities on NHL games, including conventional moneyline bets, point spread bets, over/under bets, and more elaborate options like parlays and teasers.
Golf
Golf is a highly sought-after sport for online sports betting in the US, with a broad array of options available for golf betting online in states where online sports betting is legal. Several online sportsbooks offer a wide range of betting opportunities on golf tournaments, including traditional moneyline bets, head-to-head matchups, and futures bets.
The interest in golf betting is particularly high, with millions of fans watching tournaments each week and many placing bets on the outcome. The thrill of major golf tournaments, such as the Masters, the U.S. Open, and the PGA Championship, make golf a preferred choice for online sports betting.
Horse Racing
Horse racing is a well-liked sport for online sports betting in the US, with a diverse range of options available for horse racing betting online in states where online sports betting is legal. Several online sportsbooks offer a wide variety of betting opportunities on horse races, including traditional moneyline bets, exotic bets like exactas and trifectas, and futures bets.
The desire for horse racing betting is particularly high, with millions of fans watching races each week and many placing bets on the outcome. The thrill of major horse races, such as the Kentucky Derby, the Preakness Stakes, and the Belmont Stakes, make horse racing a favored choice for online sports betting.
Martial Arts
Boxing and mixed martial arts (MMA), including the Ultimate Fighting Championship (UFC), are well-liked sports for online sports betting in the US. In states where online sports betting is legal, there is a diverse range of options available for boxing and MMA betting online. Numerous online sportsbooks offer a broad array of betting opportunities on major boxing and MMA events, including traditional moneyline bets, over/under bets, and prop bets.
The excitement of major boxing and UFC events, such as title fights and high-profile matchups, make these sports a favored choice for online sports betting.
While the specific types of bets and events available for betting can vary from state to state and from sportsbook to sportsbook, the overall trend is towards a more diverse and inclusive betting experience for players.
Whether you're a fan of traditional American sports or prefer more niche offerings like cricket or rugby, there are likely to be options available for you at licensed and regulated online sportsbooks in states where online sports betting is legal.
Bonuses of Legal Sportsbooks
Bonuses and promotions are an important part of the online sports betting industry, and in states where online sports betting is legal, there are typically a wide range of bonuses and promotions available to players at licensed and regulated online sportsbooks.
These bonuses and promotions can come in many forms, including sign-up bonuses, free bets, and ongoing promotions for loyal players. For example, some sportsbooks offer a risk-free bet for new players, allowing them to place a bet without any risk of losing money. Others offer free bets, matched deposits, or other incentives to attract new players.
Furthermore, even a particular bookmaker that operates in multiple states may offer different promotions and bonuses for each state. This is due to differences in state regulations and market conditions. For example, a bookmaker that operates in New York, Illinois, Arizona, or Louisiana may offer different promotions and bonuses in each state to better meet the needs and preferences of players in that particular market.
As a result, it's always a good idea for players to check the promotions and bonuses available in their particular state to make sure they are taking advantage of the best offers available.
It's worth noting that online sportsbooks sometimes tailor their bonuses and promotions for specific sporting events and leagues. The most common examples of this are NBA and NHL bonuses, which offer players special incentives to bet on these popular leagues.
For example, some sportsbooks may offer bonuses for NBA playoff games, while others may offer promotions for NHL regular season games. These promotions can range from free bets to matched deposits and may be available only for a limited time.
How to Make Sure You are Betting Legally?
If you want to make sure that you are betting legally within your state, there are a few steps you can take to ensure that you are complying with all applicable laws and regulations.
Check if online sports betting is legal in your state:
Check if online sports betting is legal in your state: The first step is to check if online sports betting is legal in your state. You can do this by checking with your state's gaming commission or by consulting with a licensed online sportsbook.
Choose a licensed and regulated online sportsbook:
If online sports betting is legal in your state, the next step is to choose a licensed and regulated online sportsbook. Look for a sportsbook that is licensed in your state and that is compliant with all applicable regulations.
Verify your identity and location:
Before you can start betting, you will need to verify your identity and location. This typically involves providing some basic personal information and allowing the sportsbook to verify your location using geolocation software.
Fund your account:
Once you have verified your identity and location, you can fund your account using a variety of payment methods, including credit cards, debit cards, and electronic wallets.
Place your bets:
With your account funded, you can start placing your bets on your favorite sports and events. Be sure to read the terms and conditions of any bonuses or promotions to ensure that you are eligible to participate.
Frequently Asked Questions
What states have legalized sports betting?
As of %currentyear%, 33 states and the District of Columbia have legalized sports betting in some form. These states include: Nevada, New Jersey, Pennsylvania, Colorado, Illinois, Indiana, Iowa, Michigan, Tennessee, Virginia, Arizona, Louisiana, and more.
What types of sports betting are legal in each state?
The types of sports betting that are legal in each state may vary, but typically include popular options such as point spread betting, moneyline bets, and over/under bets. Some states may also allow in-play or live betting, parlay betting, and prop bets.
How does sports betting work in each state?
The specific rules and regulations for sports betting can vary by state, but generally, bettors must be physically located within the state and be of legal gambling age to place bets. They can then place their bets at licensed and regulated sportsbooks, either online or in-person.
What are the tax implications of sports betting?
The tax implications of sports betting vary by state, but typically winnings are subject to federal and state income taxes. Additionally, some states may also require sportsbooks to withhold taxes on large winnings.
What are the age limits for sports betting?
The age limits for sports betting vary by state, but typically range from 18 to 21 years old.
What types of ID are required for sports betting?
The types of ID required for sports betting may vary by state and sportsbook, but typically a valid government-issued ID such as a driver's license or passport is required.
What are the odds for sports betting?
The odds for sports betting vary by sportsbook and the type of bet being placed. Odds are typically set by the sportsbook based on a variety of factors including past performance, injuries, and current market conditions.
What are the limits for sports betting?
The limits for sports betting may vary by sportsbook and the type of bet being placed. Some sportsbooks may have minimum and maximum bet amounts, while others may have betting limits based on a bettor's account history.
What types of bets can be placed on sports?
The types of bets that can be placed on sports vary by state and sportsbook, but typically include popular options such as point spread bets, moneyline bets, and over/under bets. Other types of bets may include in-play or live betting, parlay betting, and prop bets.
What is the process for placing a bet on sports?
The process for placing a bet on sports may vary by state and sportsbook, but typically involves creating an account with a licensed and regulated sportsbook, funding the account, and then placing bets on the desired sports and events. Bettors must be physically located within the state and of legal gambling age to place bets.
Cassius Mercer
Cassius is among our pioneering authors, boasting a wealth of expertise in various sports analytics withing the US. Thanks to his profound knowledge and remarkable skills, Cassius swiftly ascended to the role of Betsmaster.com's principal content editor in a remarkably short span of time.
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