Legal Status of Sports Betting
The legal status of sports betting in the USA has undergone significant changes in recent years, resulting in a rapidly expanding and evolving landscape. Since the landmark decision by the Supreme Court in 2018 to lift the federal ban on sports betting, each state has been given the authority to regulate sports wagering within its borders. This has led to a patchwork of laws, with some states fully embracing sports betting, others allowing it with restrictions, and some still maintaining a ban.
In this guide, we’ll cover the current legal status of sports betting across the USA, which states have legalized it, and what you need to know before placing a bet in your state. Whether you’re a seasoned bettor or a newcomer, understanding the legal landscape is essential for enjoying a safe and regulated betting experience.
The Repeal of PASPA: A Turning Point for Sports Betting
The modern era of sports betting in the USA began in 2018, when the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA). PASPA had effectively banned sports betting nationwide (except in a few states, like Nevada), but its repeal opened the door for states to decide individually whether or not to legalize sports betting.
Since then, a number of states have moved quickly to establish their own sports betting laws, allowing both retail and online wagering. This decision marked a major turning point, leading to the flourishing sports betting market we see today, with millions of Americans now legally placing bets on their favorite sports.
States Where Sports Betting is Legal
Since the repeal of PASPA, sports betting has become legal in a growing number of states, both at retail locations and online. Here’s a breakdown of the states that have fully embraced sports betting:
1. New Jersey
New Jersey was a pioneer in the fight to legalize sports betting, and it quickly became a major hub for the industry. Both online and in-person sports betting are legal in the state, and bettors can wager on professional and college sports. New Jersey’s competitive market offers numerous sportsbooks, including DraftKings, FanDuel, and BetMGM, providing bettors with plenty of choices.
2. Nevada
Nevada is the historical home of legal sports betting in the USA, with Las Vegas being the epicenter of sports wagering for decades. Sports betting has long been a part of Nevada’s entertainment landscape, and bettors can place wagers both in-person at casinos and through mobile apps. Nevada remains a popular destination for bettors looking to enjoy the full experience of sports betting.
3. Pennsylvania
Pennsylvania was among the early adopters of sports betting after the repeal of PASPA. The state offers both retail and online sports betting, and it has a thriving market with several major operators, including BetRivers, DraftKings, and FanDuel. Pennsylvania allows betting on both professional and college sports, making it a well-rounded market for sports fans.
4. Illinois
Illinois has also legalized sports betting, allowing both in-person and online wagering. The state initially required bettors to register in person at a sportsbook, but the requirement has since been lifted, making it easier for residents to register and place bets online. Sportsbooks like PointsBet and BetMGM are available in Illinois, providing plenty of options for bettors.
5. Colorado
Colorado entered the sports betting scene in 2020 and quickly became one of the most bettor-friendly states. With low taxes and minimal regulations, Colorado has attracted a wide range of sportsbook operators, including Caesars, Betfred, and DraftKings. Bettors in Colorado can enjoy both online and retail betting, with a wide variety of betting markets available.
States Where Sports Betting is Partially Legal or Restricted
In some states, sports betting is legal but with restrictions, such as limitations on online betting, in-person registration requirements, or restrictions on certain types of bets:
1. New York
New York initially allowed only retail sports betting at casinos, but in 2022, the state expanded to include online sports betting as well. New York quickly became one of the largest markets in the country, with major operators like FanDuel, DraftKings, and Caesars offering their platforms to residents. However, betting on in-state college teams is prohibited, which means bettors cannot wager on teams like Syracuse or St. John’s.
2. Mississippi
Mississippi allows in-person sports betting at licensed casinos, but online betting is restricted to being on-site at these locations. This means bettors cannot place bets from home or elsewhere in the state. While Mississippi offers a robust market for in-person betting, the lack of true mobile betting has limited its overall growth.
3. Oregon
Oregon has legalized sports betting, but it is offered primarily through a state-run app called Scoreboard, which is operated by the Oregon Lottery. While retail betting is also available at tribal casinos, bettors in Oregon do not have as many choices as in other states, and the market remains limited compared to more competitive environments.
States Where Sports Betting Remains Illegal
Despite the widespread legalization of sports betting across much of the country, there are still some states where it remains illegal. Here are a few examples:
1. Utah
Utah is known for its strict stance on gambling and has shown no movement toward legalizing sports betting. Due to cultural and religious factors, it’s unlikely that sports betting will become legal in Utah in the foreseeable future.
2. Alabama
Alabama currently does not allow sports betting and has limited gambling options overall. Efforts to legalize sports betting have been introduced but have yet to gain enough traction to pass. However, the situation could change in the coming years as more neighboring states legalize sports wagering.
3. Alaska
Alaska also does not permit sports betting, and there has been little legislative movement to legalize it. The state has no significant history of gambling, and while sports betting discussions have taken place, there is no clear timeline for potential legalization.
Online vs. Retail Sports Betting
A key distinction in the legal landscape of sports betting is the difference between online and retail betting. Some states have fully embraced online sports betting, allowing residents to place wagers from their mobile devices or computers, while others restrict betting to in-person locations such as casinos.
- Online Sports Betting: States like New Jersey, Pennsylvania, and Colorado allow full online sports betting, meaning bettors can place wagers from anywhere within state borders. This has led to a surge in participation, as online betting is convenient and easy to access.
- Retail Sports Betting: States like Mississippi and Montana require bettors to place their bets in person at licensed venues. While this provides a more social experience, it limits accessibility compared to states that offer full online betting options.
Tribal Sportsbooks and State-Run Betting
In some states, sports betting is offered exclusively through tribal casinos or state-run platforms. For instance, Connecticut has partnerships with tribal entities to offer both retail and online sports betting, while Oregon operates its sports betting through a state lottery app. These arrangements can limit the number of available sportsbooks, which may impact the competitiveness of odds and promotional offerings.
Future of Sports Betting in the USA
The future of sports betting in the USA looks bright, with more states expected to pass legislation in the coming years. States like California and Texas have the potential to become major markets if sports betting is legalized, but legislative and political hurdles remain. Additionally, the federal government could play a role in establishing broader regulations to ensure consumer protection and standardize practices across state lines.
Key Considerations for Bettors
For those interested in betting on sports, understanding the legal status in your state is crucial. Here are some key considerations:
- Verify State Legality: Always check to see if sports betting is legal in your state and whether it’s available online, in-person, or both.
- Choose a Licensed Sportsbook: Make sure to use a licensed and regulated sportsbook to ensure your funds and personal information are secure.
- Age Requirement: The legal age for sports betting varies by state, usually either 18 or 21. Be sure to check the age requirement in your state before placing a bet.
Wrapping It Up: Navigating the Legal Landscape of Sports Betting in the USA
The legal status of sports betting in the USA is constantly evolving, with more states moving toward legalization each year. Since the repeal of PASPA in 2018, the landscape has shifted dramatically, offering bettors more opportunities than ever to legally wager on their favorite sports. However, the regulations vary significantly from state to state, so it’s important to understand the specific laws that apply to where you live.
Whether you’re in a state with a thriving online sports betting market like New Jersey, limited retail options like Mississippi, or still waiting for legalization, knowing the current laws will help you navigate the world of sports betting safely and effectively.