Logo for Data AppliedData AppliedAbout Us

Sports Betting Legalities: Where Can You Bet on Sports in the U.S.?

Sports betting has seen a dramatic shift in legality across the United States over the past few years. The Supreme Court's 2018 decision to strike down the Professional and Amateur Sports Protection Act (PASPA) opened the door for states to legalize sports betting at their discretion. Understanding where you can legally place bets is crucial for anyone involved in sports betting. Here's an overview of the current landscape of sports betting legalities in the U.S.

Federal vs. State Legislation

Before diving into the state-by-state breakdown, it's essential to understand the federal framework:

• PASPA Repeal: In May 2018, the Supreme Court ruled in Murphy v. NCAA that PASPA was unconstitutional, effectively allowing states to legalize sports betting.

• Federal Wire Act: This 1961 law prohibits the use of wire communications for placing bets across state lines. It impacts online betting across different states.

States Where Sports Betting is Legal

As of now, sports betting is legal in several states, each with its own set of regulations and operational models. Here are some key states where you can legally bet on sports:

1. New Jersey

• Overview: One of the pioneers in legal sports betting post-PASPA. New Jersey offers both online and retail sports betting.

• Regulations: Sportsbooks must be affiliated with existing casinos or racetracks.

2. Nevada

• Overview: Long known as the gambling capital of the U.S., Nevada has offered legal sports betting for decades.

• Regulations: Both retail and mobile betting are allowed, but online accounts must be registered in-person.

3. Pennsylvania

• Overview: Legalized sports betting in 2018, with a robust market for both retail and online betting.

• Regulations: Sportsbooks are linked to the state's casinos, and the tax rate on revenue is relatively high.

4. Colorado

• Overview: Voters approved sports betting in 2019, with operations starting in 2020. Both online and retail betting are available.

• Regulations: A competitive market with multiple operators, each linked to existing gaming licenses.

5. Illinois

• Overview: Legalized sports betting in 2019, with both retail and online options available.

• Regulations: Initial in-person registration requirement for online betting, which has since been lifted.

6. Indiana

• Overview: Launched legal sports betting in 2019, offering both retail and online platforms.

• Regulations: Sportsbooks must partner with existing casinos or off-track betting facilities.

7. Iowa

• Overview: Legal since 2019, with both retail and online betting options.

• Regulations: Initially required in-person registration for online betting, which has been phased out.

8. Michigan

• Overview: Legalized sports betting in 2019, with operations beginning in early 2020. Both retail and online betting are available.

• Regulations: Online sportsbooks must be partnered with existing casinos.

9. Virginia

• Overview: Legalized sports betting in 2020, with a focus on online platforms.

• Regulations: Allows for both retail and online betting, with numerous licensed operators.

10. New York

• Overview: Retail sports betting has been legal since 2019, with online betting launched in 2022.

• Regulations: Online sportsbooks must partner with existing casinos, and the state has implemented a high tax rate on revenue.

States with Partial or Pending Legalization

Several states have legalized sports betting but are still in the process of launching operations or have limited options available. These include:

• Maryland: Legalized in 2021, with operations expected to start soon.

• Louisiana: Voters approved sports betting in 2020, with retail and online options expected to launch in 2022.

• Ohio: Passed legislation in late 2021, with betting expected to start in 2022.

States Where Sports Betting is Not Yet Legal

While sports betting is expanding rapidly, several states have not yet legalized it. Some states have legislative bills under consideration, while others have shown little movement towards legalization. These states include:

• California: Several attempts to legalize sports betting have stalled, but efforts continue.

• Texas: Legislation has been introduced, but the state has yet to pass a bill.

• Florida: Legalized briefly in 2021, but ongoing legal challenges have halted operations.

Practical Tips for Bettors

1. Check Local Regulations:

- Always verify the legality of sports betting in your state. Regulations can change, so stay informed about the latest developments.

2. Use Licensed Operators:

- Ensure you are using licensed and regulated sportsbooks. This guarantees fair play and protects your financial transactions.

3. Understand the Tax Implications:

- Be aware of the tax obligations associated with sports betting winnings in your state. Some states impose taxes on gambling winnings, which can impact your overall earnings.

4. Stay Responsible:

- Bet responsibly and within your means. Most states have resources for responsible gambling and provide options for self-exclusion if needed.

Conclusion

The landscape of sports betting in the U.S. is dynamic and rapidly evolving. Understanding where you can legally place bets is crucial for compliance and maximizing your betting experience. As more states legalize sports betting, opportunities for bettors continue to grow. Stay informed about local regulations, use licensed operators, and always bet responsibly. With the right knowledge and approach, sports betting can be a rewarding and enjoyable activity.