How Many States is Sports Betting Legal in? A Comprehensive Overview of U.S. Gambling Laws
Sports betting in the United States has grown into a multibillion-dollar industry, but this was not always the case. Until recently, this activity was strictly prohibited in many regions. The map below shows that in some states, the situation remains unchanged to this day. The turning point came in 2018 when the U.S. Supreme Court overturned the federal ban on sports betting. Previously, a 1992 law had effectively outlawed it nationwide, with only a few minor exceptions. Now, each jurisdiction determines how to regulate this activity on its own terms.
Please Note: Based on data from the American Gaming Association and Forbes Betting, we have created a map to illustrate the current status of sports betting legalization in various regions, as well as the nuances of its regulation.
Where is Sports Betting Legal?
Currently, sports betting is legal in 38 states and the District of Columbia. The gambling experts at KasinoBonus believe that the number of states legalizing betting will increase. However, the approaches to organizing it vary significantly:
- In eight states, retail betting is restricted, meaning players can place wagers exclusively at licensed establishments.
- In two states—Tennessee and Vermont—only online betting is permitted, with no options for offline transactions.
Some regions still prohibit all forms of sports betting, though legislative changes are actively being pursued.
It is important to note that Texas provides a prime example of a strict approach. Here, gambling is prohibited under the state’s criminal code, with exceptions made for a limited number of casinos operated by Native American tribes and certain venues offering slot machines.
Politics and Religion as Influencing Factors
According to Daniel Grabher, founder of GlobalBet, regulatory differences in sports betting can be attributed to the political and cultural climates of individual states.
“States where gambling remains illegal are often characterized by a more conservative political outlook. Here, betting is perceived negatively, and legal advertising faces particularly strong resistance,” he explains.
Religion also plays a significant role. For example, in Utah, where a large portion of the population belongs to The Church of Jesus Christ of Latter-day Saints, gambling is categorically condemned as a “moral evil.” This explains why the possibility of legalization is not even discussed in the state.
Unforeseen Consequences of Legalization
The rapid growth of legal betting following the Supreme Court’s decision has brought not only revenue but also a range of challenges. Studies show that:
- Within four years of legalization, the average credit score of residents in states with legal betting decreased by 0.3%.
- In regions where mobile betting is available, bankruptcy rates have increased by 28%, and debt levels have risen by 8%.
Researchers from the University of California and the University of Southern California attribute this to a surge in gambling addiction and the pervasive integration of betting into daily life.
The Shadow Side
Even in states where sports betting remains illegal, its popularity continues to grow. According to the American Gaming Association, Americans placed over $63.8 billion in illegal bets in 2022. This resulted in an estimated loss of approximately $700 million in potential tax revenue for state governments.
“The ease of accessing illegal platforms online undermines efforts to enforce laws. This fuels not only illegal betting but also increases the risk of fraud,” says Daniel Grabher.
Inadequate oversight of the illegal market creates risks for participants, who are left without guarantees of payouts and lack mechanisms to address gambling addiction.
The legalization of sports betting in the U.S. remains a contentious issue. While it undoubtedly delivers economic benefits, it also poses a host of new social challenges.
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