US sports betting has grown very fast since the Supreme Court struck down the federal ban in 2018. Today 39 states plus Washington D.C. allow legal betting, and Americans are expected to wager a record $2.6 billion on the Super Bowl in 2026.
Many bettors still don’t fully understand the US betting regulations for players. This creates confusion, compliance risk, and limits market reach for operators. Clear legal knowledge is key to reduce risk, reach more players, and grow responsibly in the U.S. betting market. Let’s learn more on legal sports betting in America.
State By State Betting Laws US
| State | Legal Betting Age | Online Betting Legal | Mobile Betting Legal | Retail Betting Legal | Notes |
|---|---|---|---|---|---|
| Alabama | 21 | ❌ No | ❌ No | ❌ No | 2026 legislation unlikely |
| Arizona | 21 | ✅ Yes | ✅ Yes | ✅ Yes | — |
| Arkansas | 21 | ❌ No | ❌ No | ✅ Yes | Retail only at casinos |
| California | 21 | ❌ No | ❌ No | ❌ No | Horse Racing is only fully legal |
| Colorado | 21 | ✅ Yes | ✅ Yes | ✅ Yes | Full market, college props banned |
| Connecticut | 21 | ✅ Yes | ✅ Yes | ✅ Yes | — |
| Delaware | 21 | ✅ Yes | ✅ Yes | ✅ Yes | State-run betting |
| Florida | 21 | ✅ Yes | ✅ Yes | ✅ Yes | Seminole compact (Dec 2023) |
| Georgia | 21 | ❌ No | ❌ No | ❌ No | Multiple bills failed till 2025 |
| Hawaii | 21 | ❌ No | ❌ No | ❌ No | Strictest anti-gambling laws |
| Idaho | N/A | ❌ No | ❌ No | ❌ No | No legislation planned |
| Illinois | 21 | ✅ Yes | ✅ Yes | ✅ Yes | High tax rates (15% online) |
| Indiana | 21 | ✅ Yes | ✅ Yes | ✅ Yes | Competitive market |
| Iowa | 21 | ✅ Yes | ✅ Yes | ✅ Yes | College betting allowed |
| Kansas | 21 | ✅ Yes | ✅ Yes | ✅ Yes | — |
| Kentucky | 18 | ✅ Yes | ✅ Yes | ✅ Yes | Live Sep 2023 |
| Louisiana | 21 | ✅ Yes | ✅ Yes | ✅ Yes | Parish opt-in system |
| Maine | 21 | ✅ Yes | ✅ Yes | ✅ Yes | Caesars exclusive |
| Maryland | 21 | ✅ Yes | ✅ Yes | ✅ Yes | — |
| Massachusetts | 21 | ✅ Yes | ✅ Yes | ✅ Yes | Live Jan 2023 |
| Michigan | 21 | ✅ Yes | ✅ Yes | ✅ Yes | — |
| Minnesota | N/A | ❌ No | ❌ No | ❌ No | — |
| Mississippi | 21 | ❌ No | ❌ No | ✅ Yes | Retail only |
| Missouri | 21 | ✅ Yes | ✅ Yes | ✅ Yes | Live Nov 2025 |
| Montana | 18 | ❌ No | ❌ Limited | ✅ Yes | — |
| Nebraska | 21 | ❌ No | ❌ No | ✅ Yes | Retail at racetracks |
| Nevada | 21 | ✅ Yes | ✅ Yes | ✅ Yes | — |
| New Hampshire | 18 | ✅ Yes | ✅ Yes | ❌ No | — |
| New Jersey | 21 | ✅ Yes | ✅ Yes | ✅ Yes | — |
| New Mexico | 21 | ❌ No | ❌ No | ✅ Yes | Tribal retail only |
| New York | 21 | ✅ Yes | ✅ Yes | ✅ Yes | — |
| North Carolina | 21 | ✅ Yes | ✅ Yes | ✅ Yes | Live March 2024 |
| North Dakota | N/A | ❌ No | ❌ No | ✅ Yes | Tribal retail only |
| Ohio | 21 | ✅ Yes | ✅ Yes | ✅ Yes | Live Jan 2023 |
| Oklahoma | N/A | ❌ No | ❌ No | ❌ No | — |
| Oregon | 18 | ✅ Yes | ✅ Yes | ✅ Yes | — |
| Pennsylvania | 21 | ✅ Yes | ✅ Yes | ✅ Yes | High taxes limit growth |
| Rhode Island | 18 | ✅ Yes | ✅ Yes | ✅ Yes | — |
| South Carolina | N/A | ❌ No | ❌ No | ❌ No | — |
| South Dakota | 21 | ❌ No | ❌ No | ✅ Yes | Deadwood casinos only |
| Tennessee | 18 | ✅ Yes | ✅ Yes | ❌ No | Mobile-only market |
| Texas | N/A | ❌ No | ❌ No | ❌ No | 2026 legislation expected |
| Utah | N/A | ❌ No | ❌ No | ❌ No | Constitution bans gambling |
| Vermont | N/A | ✅ Yes | ✅ Yes | ❌ No | — |
| Virginia | 21 | ✅ Yes | ✅ Yes | ✅ Yes | High growth market |
| Washington | 21 | ❌ No | ❌ No | ✅ Yes | Tribal casinos only |
| West Virginia | 21 | ✅ Yes | ✅ Yes | ✅ Yes | First to launch online |
| Wisconsin | 21 | ❌ No | ❌ No | ✅ Yes | Oneida Nation retail |
| Wyoming | 18 | ✅ Yes | ✅ Yes | ❌ No | — |
- As of February 2026, 39 states plus Washington, D.C., and Puerto Rico allow legal sports betting.
- The American Gaming Association confirms that 40 states have legalized betting.
- 32 states now offer online and mobile betting services.
- Texas is reviewing multiple betting bills for 2026 as a part of legal sports betting in America.
Federal vs. State Sports Betting Laws in the US
The US betting laws can be confusing. That’s because the federal and state governments both enact laws. The federal laws establish some limitations, yet each state determines what is legal in its territory. Some states permit full online betting. Some do not permit any online betting.
The Wire Act (1961)
- The Federal Wire Act is a law against using phones or the internet to bet on sports with people in other states.
- It was first made to stop organized phone betting. Now, courts also use it for online betting websites.
- The Department of Justice (DOJ) makes sure people follow this law.
- If you break this law, you could face big fines and go to jail for up to two years.
PASPA and Its Repeal (2018)
- PASPA was a rule that made betting on just one sports game illegal in most parts of the US.
- The Supreme Court in the US decided PASPA wasn’t fair and allowed each state to make its own rules about sports betting.
- New Jersey was one of the first states to allow this, and it quickly became a popular spot for people to bet on sports.
Remaining Federal Oversight
- UIGEA (Unlawful Internet Gambling Enforcement Act) (2006): This law makes it illegal for companies that handle money (like banks) to process payments for online gambling that is against the law.
- Banks must watch where money goes and stop payments for illegal betting.
- Anti-Money Laundering (AML) Rules: These rules stop people from hiding illegally obtained money.
- Betting companies must know who their customers are (KYC, or Know Your Customer) and report anything that looks suspicious.
Readers Of This Blog Also Read
US States Where Sports Betting is Legal
Sports betting legality in the US is currently a peak discussion. Being a bettor, you might want to know about US states where sports betting is legal. Well, here is a list of US states that currently legalized sports betting.
- Washington
- Oregon
- Nevada
- Arizona
- New Mexico
- Colorado
- Wyoming
- Montana
- North Dakota
- South Dakota
- Nebraska
- Kansas
- Iowa
- Missouri
- Arkansas
- Louisiana
- Mississippi
- Tennessee
- Kentucky
- Indiana
- Illinois
- Wisconsin
- Michigan
- Ohio
- Florida
- North Carolina
- Virginia
- West Virginia
- Maine
- Maryland
- New Jersey
- Pennsylvania
- Delaware
- Connecticut
- New York
- Massachusetts
- Rhode Island
- Vermont
- New Hampshire
- District of Columbia
Retail betting is legalized in 37 states and illegal in 14 states including Vermont, Tennessee and Maine. Online sports betting is legal in 32 states and illegal in 11 states in the US.
States like Utah and Hawaii continue to ban all forms of sports wagering.
US States Where Sports Betting is Illegal
There are still some states where betting is illegal. The United States is actively working towards legalizing sports betting in remaining states where US betting laws do not approve betting in all forms. Let’s check out!
Alabama
Alabama is still one of the few states where sports betting is not legal. This is mostly because of political pushback and low public support. A plan to allow sports betting and other games was introduced in 2024 but did not pass. The state also has no lottery, making gambling laws very strict. Lawmakers are likely to try again in 2025.
Alaska
Alaska has not taken big steps yet to allow sports betting. The state has a small population and few gambling options. Thus, it’s not a main focus for lawmakers to establish US sports betting legality. Right now, there are no active bills in 2026 to legalize it.
California
California has tried to legalize sports betting, but it’s been tough. Tribal casinos have a big say in the state’s gambling rules, and their interests often clash. Many plans, including ones for retail and online betting, have failed. Lawmakers may try again in 2025, but there are still big challenges ahead.
Georgia
Georgia has tried many times to legalize sports betting. Pro sports teams and some lawmakers support it. But political disagreements have stopped the efforts each time. The latest try in 2025 failed. Now, any chance of legal sports betting is delayed until at least 2026 or later.
Hawaii
Hawaii has always said no to all types of gambling, including sports betting. The state’s location and strong cultural values play a big role in this. Right now, there are no plans or bills to make sports betting legal.
Idaho
Idaho has not shown much interest in legal sports betting. The state holds strong conservative views and does not support expanding gambling. In recent years, lawmakers have not seriously talked about passing any sports betting laws or coming under sports betting legality.
Minnesota
Minnesota has tried many times to achieve US sports betting legality. Unfortunately, none have worked. In 2024, a new bill was introduced. It did not pass because of worries about in-game betting and gambling problems. The 2026 session is active and HB 2492 has been reintroduced in Jan 2026.
Oklahoma
Oklahoma’s future in sports betting depends on its tribal gaming. Negotiations between the state and tribes have made some progress. But no final law has been passed yet. Legal sports betting will likely happen only if these negotiations move forward.
South Carolina
South Carolina has made very little progress in legalizing sports betting. The state’s strict views on gambling have slowed things down. No major law changes are expected anytime soon.
Texas
Texas has not moved quickly on sports betting, even with its big population and strong market potential. Many conservative leaders still oppose it, which has slowed things down. There was a small push in 2023, but conservative opposition persists..
Utah
Utah has the strictest gambling laws in the U.S. No type of gambling is allowed in the state. Sports betting is not being discussed, and chances of change are very low. Strong religious and cultural beliefs make it unlikely that Utah will allow betting anytime soon.
Legal Age of Betting in the US
Betting in the US is getting more exposure with more states engaging in legalized sports betting. However, gambling can be addictive and only the adults can engage in them. Thus, the US government has strictly enforced age restrictions as a part of US sports betting legality. Some US state bettors need to be at least 21+ years of age to be able to bet. Some of the other US states mention that bettors need to be at least 18 years to take part in betting.
Let’s get some details here.
US States Where You Can Bet on Sports at 18
- Rhode Island
- Washington, D.C.
- Kentucky
- Montana
- New Hampshire
- New Mexico
- Oregon
- Vermont
- Wyoming
US States Where You Must be 21 to Bet on Sports
- Indiana
- Colorado
- Ohio
- Nevada
- West Virginia
- North Carolina
- New York
- Michigan
- Mississippi
- Arkansas
- South Dakota
- Louisiana
- Maryland
- Wisconsin
- Delaware
- Connecticut
- Pennsylvania
- Maine
- Arizona
- Virginia
- Illinois
- New Jersey
- Iowa
Taxes on Sports Betting in the US
- All sports betting winnings are taxable in the United States.
- The IRS treats gambling income like regular income.
- This applies to online betting and casino betting.
- If you win $600 or more and the amount is 300 times your bet, you will receive a W-2G form.
- The betting platform must send this form by January 31 of the next year.
- If you win $5,000 or more, up to 24% may be taken out for federal tax before payment.
- Even if you win less than $600, you must still report it.
- Small wins are also taxable.
- Keep records of all wins and losses.
- Save tickets, receipts, and betting history.
- This helps during tax filing and audits.
- Wins and losses are counted per session.
- You cannot reduce your winnings by adding losses.
- Example: Lose $600, then win $1,000. You must report the full $1,000.
- All winnings count, whether small or large.
- Big wins get more attention from the IRS.
- Always report honestly.
How to Report Sports Betting Income
- Report winnings as gambling income on Schedule 1, Line 8b of IRS Form 1040.
- As of January 2026, up to 90% of winnings may be reportable under BBBA rules.
- Report losses on Schedule A as itemized deductions.
- Losses can only be claimed if you itemize your return.
- You cannot claim more losses than your total winnings.
GammaStack: Leading Sports Betting Software Provider for Legalized Sportsbooks
GammaStack stands out as a top choice for legalized sportsbooks. With over 14 years in the industry, we offer sportsbook software that is fully customizable. Our platform supports 100+ betting markets, ensuring a wide range of options for bettors. Features like live betting, real-time odds, and multi-device compatibility enhance user engagement. We also provide 24/7 end-to-end support for both development and license acquisition. Our commitment to security, scalability, and innovation makes us a reliable partner for launching a successful sportsbook.
FAQs on US Betting Laws
1. Which states have legalized sports betting in the US?
The US has legalized sports betting in 40 states as of February 2026. Some of them include – Delaware, New York, New Jersey, Washington, Nevada, Ohio etc.
2. Is online sports betting legal in the US?
Yes, online sports betting is now permitted in most of the United States. As of 2026, 32 states and the District of Columbia permit online sports betting. Besides, it isn’t everywhere legal. The US states like California, Texas, Georgia, and Utah still don’t allow online sports betting. If you live in a state in which the activity is legal, you can bet online via authorized apps or sites. Bettors must check the laws in their state before betting.
3. What are the challenges facing regulated sports betting in the US?
Regulated sports betting in the U.S. faces challenges such as –
- State-specific rules
- Protecting people from gambling harm
- Legal disputes over betting eligibility
- Confusion about online betting laws
- Scandals and cheating concerns
These issues make it difficult for companies to offer the same services across states, protect people from gambling addiction, and manage and grow sports betting safely and fairly.
4. Is sports betting legal for federal employees?
Gambling activities are strictly prohibited in all government-owned or leased facilities unless specifically authorized by statute or regulation. Additionally, federal employees are prohibited from engaging in gambling activities while on duty. Disciplinary action may be taken against those who violate these regulations.
5. Is there a federal tax on sports betting?
Ensure you are aware of the sports betting tax regulations in your state. Also, remember that federal law mandates a 24% tax on gambling winnings exceeding $600 in a single wager, provided the total winnings are more than 300 times the bet amount.