Sports betting has become a major topic of conversation in the United States. With the repeal of the federal ban on sports betting in 2018 (via the landmark Murphy v. NCAA Supreme Court decision), states were given the power to legalize and regulate sports betting within their borders yolo247. As a result, the landscape of sports betting has rapidly evolved, and it can be challenging to know whether it’s legal in your state.
In this blog post, we’ll break down what you need to know about the legal status of sports betting across the country and how it might impact you.
The 2018 Supreme Court Ruling
Before 2018, sports betting was illegal in most states due to the Professional and Amateur Sports Protection Act (PASPA) of 1992, which prohibited sports wagering outside of Nevada. However, in May 2018, the Supreme Court struck down PASPA, ruling that it was unconstitutional for the federal government to prohibit states from deciding for themselves whether to allow sports betting.
This ruling opened the door for individual states to pass their own laws to regulate and tax sports betting. While many states quickly moved forward with legalization, others have been more hesitant, and some still maintain strict prohibitions on the practice.
How States Decide on Sports Betting Legality
Since the 2018 ruling, states have taken various approaches to legalizing sports betting. Some states have fully embraced it, establishing both in-person and online sports betting markets, while others have taken more conservative routes, permitting only in-person betting or placing restrictions on the types of sports that can be wagered on.
Here are a few key factors that influence whether sports betting is legal in your state:
- State Legislation: Each state has to pass its own laws to legalize sports betting. This can happen through state legislatures or, in some cases, via voter referendums. Some states, like New Jersey and Pennsylvania, quickly passed laws that allowed both online and in-person sports betting, while others took longer to develop and implement the necessary regulatory framework.
- Online vs. In-Person Betting: Not all states offer online sports betting, which allows bettors to place wagers from their phones or computers. States like New Jersey, Michigan, and Illinois have embraced both online and retail sports betting, while other states like Nevada and Montana have more limited options, often restricting sports betting to physical sportsbooks only.
- Regulation and Licensing: Legal sports betting requires a framework for licensing operators, establishing odds, and ensuring fairness in the betting process. States have created regulatory bodies to oversee this industry, such as the New Jersey Division of Gaming Enforcement and the Pennsylvania Gaming Control Board. These regulators ensure that sportsbooks comply with state laws, collect taxes, and protect consumers.
- Tax Rates and Revenue: States that have legalized sports betting also determine the tax rates on betting revenue. These rates can vary widely from state to state, with some states like Pennsylvania taxing sports betting at rates as high as 36%, while others like New Jersey tax it at around 13%. These revenues are often earmarked for education, infrastructure, or other state needs.
States Where Sports Betting is Legal
As of 2024, sports betting is legal in over 30 states, and more are considering legalization. Some of the states where sports betting is fully legal, including online and in-person options, include:
- New Jersey: One of the first states to legalize sports betting after the Supreme Court ruling, New Jersey offers both in-person and online betting at numerous sportsbooks.
- Pennsylvania: Another early adopter, Pennsylvania has a thriving sports betting market with both retail and online sportsbooks available.
- Michigan: Sports betting, including online wagering, was legalized in Michigan in 2020, and the state has seen rapid growth in its sports betting market.
- Illinois: Illinois legalized sports betting in 2019, with both retail and online options available.
- Indiana: Legal sports betting, including online betting, is available in Indiana and has been a success since its launch.
- Colorado: Colorado legalized sports betting in 2020, and it quickly became one of the top markets in the U.S. with several online sportsbooks.
States Where Sports Betting is Not Yet Legal
While many states have embraced sports betting, others have been slower to adopt it or have actively resisted it. States where sports betting is not yet legal (as of 2024) include:
- California: Despite significant public interest, California has not yet passed sports betting legislation. There have been attempts to legalize sports betting through voter referendums, but they have faced challenges.
- Texas: Sports betting remains illegal in Texas, though lawmakers have introduced bills in recent years to explore the possibility of legalization.
- Georgia: Georgia has not legalized sports betting, and there is no active legislative push to do so at the moment.
- Hawaii: Hawaii has been resistant to sports betting legislation, with no significant movements toward legalization in the near future.
What You Need to Know Before Betting
If you live in a state where sports betting is legal, here are a few important things to know:
- Know the Rules: Different states have different regulations. Some may allow betting on a wide range of sports, while others may limit what kinds of bets are allowed.
- Understand the Taxes: In states where sports betting is legal, winnings are generally subject to state taxes. Be sure to understand your tax obligations if you’re placing large wagers.
- Choose a Licensed Operator: Always bet through licensed sportsbooks or casinos. Unlicensed operators are illegal and can put your personal information and funds at risk.
Conclusion
The legality of sports betting in the United States is still a patchwork of state-specific rules. While some states have fully embraced it, others are still on the fence, and a few have firmly rejected it. If you’re interested in sports betting, it’s crucial to know your state’s laws before you place a wager.
