Something New to Know About Sports Betting in the US
✨Key Points
- Sports-betting laws, age limits and permitted wagers differ by state.
- Bettors should use state-licensed sportsbooks and avoid offshore platforms.
- Sports-betting winnings are taxable, and running a bookmaking business requires licensing.
A sportsbook may accept your deposit in seconds, but withdrawing your winnings can become much harder if the operator is not licensed in your state.
Even experienced sports fans can lose money through confusing bonus terms, restricted college bets or offshore platforms with little consumer protection.
Sports betting is now available in 39 states and Washington, D.C. Major operators such as FanDuel, DraftKings, BetMGM and Caesars Sportsbook serve many legal markets, but none is automatically authorised in every state.
In 2025, commercial sportsbooks generated a record $16.89 billion in revenue, according to the American Gaming Association.
Before risking your money:
- Verify the sportsbook through your state gaming regulator.
- Check whether mobile, retail and college betting are permitted.
- Compare odds instead of choosing by brand recognition.
- Read bonus, withdrawal and account-verification terms.
- Expect the app to confirm your age and physical location.
- Keep records because all gambling winnings are federally taxable.
This guide explains how to identify a legal sportsbook, avoid costly mistakes and understand the rules before placing your first bet.
Is Sports Betting Now Legal in All US States?
In October 1992, the Professional and Amateur Sports Prohibition Act (PASPA) was enacted. It prohibited sports betting in all US states but four.
However, in May 2018, the US Supreme Court stated that PASPA is unconstitutional and each state has the right to decide if it wants to allow sports betting within its boundaries.
As the following infographic reveals, only seven states have legalized sports betting since the verdict.
While 16 US states have introduced bills to legalize sports betting after the verdict, they haven’t yet passed them, and 24 states have not introduced any such bills.
Also, two states have decided to adopt existing legal sports betting laws without any modifications.
Only one state has declared betting illegal, and that’s Utah.
So before you jump with excitement over the repeal of PASPA, go to NJ Games and check whether your state has legalized sports betting or not.
If not, you might have to wait longer before you can place bets on athletic events, online or offline.
And if you’re a Utah resident, it’s unfortunately illegal for the foreseeable future.
Probably the only option you have is to drive to the nearest state that has made sports betting legal and place bets there.
What Are the Main Advantages of Online Sports Betting?
Sports bets can be placed through mobile apps or at retail sportsbooks, depending on state law.
Online betting has become the preferred option for many customers because it provides faster access to odds, live markets and account information.
Esports betting is also expanding.
One 2026 industry estimate values the global esports betting market at approximately $18.53 billion, with continued growth expected through 2035.
However, US bettors should remember that a state may allow traditional sports betting while restricting or excluding wagers on esports competitions.
Compared with retail sportsbooks, legal online betting offers three main advantages: convenience, easier odds comparison and access to live betting markets.
Always confirm that both the operator and the selected esports event are approved by the relevant state gaming regulator
Ease of Access
You can bet on any game online without stepping out of the house.
What’s more, today, most sports betting sites offer free mobile apps to users, and you can see them here if you would like to learn more about some of the options out there.
This means you can even place bets on the go.
Additionally, many sites have a live betting feature, which allows betters to dynamically change their bets as the game is played.
Last but not least, anyone and everyone can place bets online.
You only need a computer or a mobile device and a fast internet connection.
On the other hand, to place them offline, you must be familiar with your local bookie.
A Wider Variety of Sports
Licensed online sportsbooks often cover more events than retail betting locations, giving users access to:
- Major leagues such as the NFL, NBA, MLB and NHL.
- College sports where state regulations permit them.
- International soccer, tennis, golf and motorsports.
- Less widely followed sports such as cricket, rugby and table tennis.
- Approved esports competitions in selected states.
This variety makes it easier to follow international or specialised markets.
However, unfamiliar sports can be harder to evaluate, and constant betting simply because another event is available can lead to impulsive losses.
Stick to sports you understand, set a fixed budget and confirm that every market is legal in your state.
What’s the Best Way to Approach Sports Betting?
Sports betting can be a lot of fun, but you can also lose more money than you can afford to if you’re not careful.
Here are some tips to consider before you dive in:
Gamble for fun and entertainment. Know the age-old adage “the only person who doesn’t lose money is the bookmaker”? That’s why you should never get carried away while gambling in sports. You should gamble for fun and entertainment; making money shouldn’t be your primary goal.
Know when to stop. Before you place bets, decide how much you can afford to lose. More importantly, never cross this limit.
Have a realistic approach. You lose some and win some in life and sports betting. Therefore, don’t expect to win on every bet you place. Before placing bets, make sure you understand your odds clearly. This will help you avoid an emotional breakdown when things don’t go your way.
How Does Sports Betting Affect the US Economy?
Legal sports betting contributes to the economy through operator revenue, taxes, employment and spending on technology, advertising and data services.
However, its impact is not entirely positive: states must also fund regulation, consumer protection and problem-gambling services.
According to the American Gaming Association, the US sports-betting market produced the following results in 2025:
- $166.94 billion was legally wagered through state-regulated sportsbooks.
- Sportsbooks generated $16.96 billion in revenue, up 22.8% from 2024.
- State-regulated sports betting produced $3.71 billion in taxes, an increase of 32.4%.
- Tax revenue helped fund state priorities such as education, infrastructure, pensions and responsible-gambling programs.
- The industry supported jobs in software development, cybersecurity, compliance, customer service, payments and sports-data analysis.
Older studies projected that sports betting would contribute $22.4 billion to US GDP and support more than 216,000 direct and indirect jobs.
However, those figures were forecasts, not current employment results, and should not be presented as confirmed 2026 statistics.
The infographic below provides additional facts about legal sports betting in the US, including market growth, state regulations and its wider economic impact.
