States With Legal Sports Betting

Sports betting is experiencing a significant growth period in the United States. The sports betting industry reached $5.72 billion between May 2023 and 2024, a 24.5% growth from the previous year. Americans enjoy placing bids on their favorite sports, whether they are betting on major events like the Super Bowl or small games throughout the season.

While the sports betting industry has grown rapidly over the past few years, experts at major financial institutions believe there is still a long way to go. They believe sports betting could become a $45 billion industry as more states legalize this practice.

Sports betting isn’t legal across the country. There are still some limits on where you can place bets. Here’s what you need to know about where sports betting has already been legalized.

When Was Sports Betting Legalized?

Sports betting was legalized in the United States in May 2018 following the Supreme Court case Murphy v. NCAA. This ruling effectively overturned the 1992 Professional and Amateur Sports Protection Act which prevented individuals from placing bets on amateur and professional sporting events.

The Supreme Court decision was viewed as a way to protect the individual rights of Americans. Essentially, the court decided it was not up to the federal government to determine whether Americans should place bets on sporting events. This law made sports betting an issue for the states, where each jurisdiction could decide whether this practice would be allowed.

How Big Is the Legal Sports Betting Industry?

Following the 2018 Supreme Court ruling, the popularity of sports betting has increased every year, making it a significant industry within the sports, media, and gambling worlds. In 2023, Americans spent $119.84 billion on sports betting, which was a 27.5% increase from 2022. This translates to large profits for sports betting companies. The industry recorded $10.92 billion in revenue in 2023, which was a 44.5% increase from 2022.

Sports betting has changed how media companies and journalists cover sports, with more shows and articles highlighting betting odds and bid options. It has also changed who sponsors teams, with many sports betting companies advertising during broadcasts and within the stadiums themselves.

What States Have Legalized Sports Betting?

Since the passing of Murphy v. NCAA, 38 states and the District of Columbia have legalized sports betting as of 2024. Here are the states where sports betting is allowed in some form:

• Arizona
• Arkansas
• Colorado
• Connecticut
• Delaware
• Florida
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Mississippi
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oregon
• Pennsylvania
• Rhode Island
• South Dakota
• Tennessee
• Vermont
• Virginia
• Washington
• Washington D.C.
• West Virginia
• Wisconsin
• Wyoming

Each of these states has its own age requirements, tax rates, revenue allocation plans, and license fees for operators. Most individuals who want to participate in sports betting simply need to know whether it is legal in their state and the minimum age to place bets. Most states require betters to be at least 21 years old, but some states allow betting when you turn 18.

What States Have Legal Online Sports Betting?

While sports betting as a whole is legal in most states, some jurisdictions have limits on how you can place bets. For example, only 30 states and the District of Columbia allow online sports betting, which involves placing bids from your smartphone or computer.

People who want to participate in sports betting for the remaining eight states need to place bets in person and cannot access the apps and platforms that other, legal betting states have. Research shows that 25.4% of sports bids placed in 2023 were done in person.

Here are the 31 jurisdictions where mobile sports betting is legal:

• Arizona
• Arkansas
• Colorado
• Connecticut
• Delaware
• Florida
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Nevada
• New Hampshire
• New Jersey
• New York
• North Carolina
• Ohio
• Oregon
• Pennsylvania
• Rhode Island
• Tennessee
• Vermont
• Virginia
• Washington D.C.
• West Virginia
• Wyoming

Three states — Mississippi, Missouri, and Oklahoma — have legislation or active ballot initiatives to legalize sports betting or allow online sports betting. The remaining states either don’t have any active proposals or had online betting proposals that failed to pass.

What Are the Benefits of Legalized Sports Betting?

Sports betting is more than a form of entertainment for the people who participate in these gaming activities. It is also a valuable source of tax revenue to the states that legalize it. The state of New York collected $188.53 million in tax revenue in the third quarter of 2023 alone. The second largest states for sports betting tax revenue were Indiana at $38.6 million and Ohio at $32.9 million.

Sports betting also affects the American economy as a whole. The rise of sports betting companies has created jobs across the country and fueled a whole new industry. When legalizing sports betting was proposed in 2017, the number of jobs supported directly and indirectly was expected to exceed 210,000. The contribution to the United States gross domestic product (GDP) was estimated at $22.4 billion.

As sports betting grows, the effects on tax revenue, GDP, and employment will also grow far past these numbers.

What States Do Not Have Legalized Sports Betting?

Some states have yet to pass laws that legalize sports betting. This limits their ability to collect tax revenue on bets placed within the state and prevents residents from participating in betting opportunities with other Americans across the country. Here are the states where sports betting is still illegal:

• Alabama
• Alaska
• California
• Georgia
• Hawaii
• Idaho
• Minnesota
• Missouri
• Oklahoma
• South Carolina
• Texas
• Utah

Some organizations within these states are working to put sports betting on ballots so citizens can vote for or against this option. This means access to sports betting could expand in the coming years.

The Future of Legalized Sports Betting in the United States

Sports betting is experiencing significant growth across the country, with new milestones reached every year. However, the future of sports betting is bright even in states where it is not allowed.

Residents of Missouri turned out in droves to sign petitions to put sports betting on the ballot in November 2024. Campaigns needed 180,000 signatures to qualify for a ballot initiative and more than 340,000 residents said they wanted to vote on this issue. In March 2024, Oklahoma legislators passed a sports betting law in the State House of Representatives. As of this writing, it was still working its way through various committees in the State Senate.

These initiatives give residents hope that they will someday be able to place bets on their favorite teams. Legislatures also have hope that they will enjoy the tax revenue and job creation that comes with legalizing sports better.

Sports betting has created a source of entertainment for millions of Americans and contributed billions to the economy. While 38 states and the District of Columbia have embraced this trend, 12 states still need to catch up. For now, the future of sports betting is bright.