The Current State of Sports Betting Legality in 2025
As of 2025, the United States sports betting market has matured significantly, with 38 states and Washington D.C. having legalized some form of sports wagering. The remaining states continue to debate legislation, with several expected to join the legal market in the coming years. The American Gaming Association reports that legal sports betting handles have surpassed $300 billion since 2018, generating significant tax revenue for states.
Sports Betting Status Map 2025
Visual representation of sports betting legality across the United States
Legal Status Key:
Green = Legal & Operational
Yellow = Legalized but Not Yet Operational
Red = Not Legal
The expansion of legal sports betting has followed several distinct patterns. Some states moved quickly to establish comprehensive markets with both online and retail options, while others have taken more cautious approaches with limited retail-only operations or tribal exclusivity. The American Gaming Association provides ongoing updates on state-level developments and industry trends.
Fully Operational Sports Betting States
These states have established mature sports betting markets with both retail and online/mobile options available to residents and visitors. The majority of Americans now have access to legal sports betting through these operational markets.
| State | Launch Date | Online Betting | Retail Locations | Key Operators |
|---|---|---|---|---|
| New Jersey | June 2018 | Yes | Multiple | FanDuel, DraftKings, BetMGM |
| Pennsylvania | Nov 2018 | Yes | Multiple | FanDuel, DraftKings, BetRivers |
| Nevada | Always Legal | Yes (In-person registration) | Extensive | Caesars, MGM, William Hill |
| Illinois | March 2020 | Yes | Multiple | FanDuel, DraftKings, PointsBet |
| Colorado | May 2020 | Yes | Multiple | BetMGM, DraftKings, FanDuel |
| Michigan | March 2020 | Yes | Multiple | FanDuel, DraftKings, BetMGM |
| Virginia | January 2021 | Yes | Limited | FanDuel, DraftKings, Caesars |
| Tennessee | November 2020 | Yes (Online only) | None | FanDuel, DraftKings, BetMGM |
| New York | January 2022 | Yes | Multiple | FanDuel, DraftKings, Caesars |
| Arizona | September 2021 | Yes | Multiple | DraftKings, FanDuel, BetMGM |
These operational markets represent the most accessible options for sports bettors, offering comprehensive mobile platforms, competitive odds, and various betting options. States like New Jersey and Pennsylvania have become market leaders, generating billions in handle annually and setting standards for regulatory frameworks.
Example: Personal Experience with Legal Sports Betting in New Jersey
Mark, a New Jersey resident, has been using legal sports betting apps since they launched in 2018. “The transformation has been incredible,” he explains. “Before legalization, I either had to use offshore sites with questionable security or take trips to Las Vegas. Now, I can safely place bets from my phone knowing I’m protected by state regulations and consumer protections.”
“What many people don’t realize about sports betting legal states is the level of oversight and responsible gambling tools available. The apps include deposit limits, time-out features, and direct links to problem gambling resources. It’s a completely different experience from the unregulated market, and the convenience has actually helped me bet more responsibly because I’m not chasing big Vegas weekends.”
States with Legalized But Not Yet Operational Markets
Several states have passed sports betting legislation but haven’t yet launched operational markets. These states are in various stages of developing regulatory frameworks, licensing operators, and establishing technical infrastructure.
Pending Launch States
- North Carolina: Legislation passed, mobile launch expected early 2025
- Vermont: Legalized in 2024, operational market anticipated mid-2025
- Missouri: Multiple legislative attempts, potential 2025 ballot measure
- Georgia: Ongoing legislative discussions, possible 2025 passage
- Alabama: Complex legislative process, tribal negotiations ongoing
The timeline from legislation to operational market varies significantly by state. Some jurisdictions like Arizona launched within months of legalization, while others like New York took years to establish their markets. The National Governors Association tracks these developments as states balance revenue generation with regulatory oversight.
Retail-Only Sports Betting States
Some states have chosen to limit sports betting to physical casino locations rather than allowing online/mobile platforms. These markets typically see lower handle volumes but provide controlled environments for sports wagering.
| State | Retail Locations | Mobile Betting | Unique Restrictions |
|---|---|---|---|
| Delaware | 3 casinos | No | Parlay cards only at retail |
| Mississippi | Casinos only | No (Mobile at casino property) | Must be on casino premises |
| New Mexico | Tribal casinos | No | Tribal compact exclusivity |
| South Dakota | Deadwood casinos | No | Limited to Deadwood location |
| Washington | Tribal casinos | No | Tribal exclusivity, in-person registration |
These retail-only markets often face pressure to expand to online platforms as neighboring states launch comprehensive mobile betting. The revenue differential between retail-only and mobile-enabled states can be substantial, creating economic incentives for legislative updates.
States Considering Sports Betting Legislation
Several states continue to debate sports betting legislation, with active bills and ongoing discussions in various legislative sessions. These states represent the next frontier for legal sports betting expansion.
⚠️ States with Active Legislation
Texas: Multiple bills introduced, strong opposition but growing support
California: Complex tribal negotiations, potential 2026 ballot measures
Minnesota: Bipartisan support, tribal compact discussions ongoing
Missouri: Annual legislative efforts, potential ballot measure
Georgia: College sports opposition, mobile-only proposals
The path to legalization varies significantly by state. Some require constitutional amendments, others need voter approval, and some can legalize through simple legislative action. The National Conference of State Legislatures provides updated tracking of sports betting legislation across all 50 states.
States Where Sports Betting Remains Illegal
Despite the national trend toward legalization, several states maintain prohibitions on sports betting. These states typically cite moral objections, potential addiction concerns, or existing tribal compact complications.
| State | Legal Status | Primary Obstacles | Future Outlook |
|---|---|---|---|
| Utah | Constitutional Ban | Moral objections, religious influence | Very unlikely to change |
| Hawaii | Complete Prohibition | No existing gambling infrastructure | Possible but not imminent |
| Alaska | No Legislation | Geographic isolation, small population | Limited interest |
| Nebraska | Limited Prohibition | Constitutional restrictions | Retail-only possible |
Utah remains the state most resistant to any form of gambling legalization, with constitutional provisions specifically prohibiting all forms of gambling. Hawaii’s geographic isolation reduces pressure from neighboring states, though tourism interests have sparked some discussion about potential legalization.
How to Legally Bet on Sports in Your State
For residents of states with legal sports betting, understanding the registration and verification process is essential for compliant participation. While specific requirements vary by state, most follow similar patterns.
Step 1: Verify Your State’s Legal Status
Confirm that sports betting is legal in your state and determine whether online/mobile betting is available. Check your state’s gaming commission website for the most current information about licensed operators.
Step 2: Choose a Licensed Operator
Select from state-licensed sportsbooks rather than offshore operators. Legitimate platforms will display their state gaming license information prominently and use geolocation verification.
Step 3: Complete Registration
Provide required personal information including name, address, date of birth, and Social Security number for identity verification and tax purposes. This process is mandatory for all legal operators.
Step 4: Pass Geolocation Verification
Enable location services on your device to confirm you’re within state borders when placing bets. Most apps use multiple verification methods to ensure compliance.
Step 5: Make Your First Deposit
Fund your account using approved payment methods, which typically include debit/credit cards, bank transfers, and various e-wallet options. Most operators offer initial deposit bonuses for new customers.
Step 6: Place Your Bets Responsibly
Use the responsible gambling tools available, set deposit limits, and never chase losses. Legal operators provide numerous resources for maintaining control over your betting activity.
Responsible Gambling Resources
All legal sports betting states require operators to provide access to responsible gambling resources:
- National Council on Problem Gambling: 1-800-522-4700
- Self-Exclusion Programs: State-specific opt-out systems
- Deposit Limits: Customizable spending controls
- Time-Out Features: Temporary account suspension options
Tax Implications of Legal Sports Betting
Understanding the tax consequences of sports betting winnings is crucial for compliant participation. Both state and federal tax obligations apply to gambling winnings, with specific reporting requirements.
Federal Tax Requirements: The IRS requires reporting of gambling winnings on Form 1040. Sportsbooks must issue W-2G forms for winnings exceeding $600 with odds of 300-to-1 or greater, though all winnings are technically taxable regardless of amount.
State Tax Variations: States take different approaches to taxing sports betting:
- High Tax States: New York (51%), New Hampshire (51%), Rhode Island (51%)
- Moderate Tax States: Pennsylvania (36%), Illinois (15%)
- Low Tax States: Nevada (6.75%), Iowa (6.75%), New Jersey (8.5%)
These tax rates apply to the sportsbook’s revenue, not individual bets. However, states may also apply income tax to player winnings. The IRS Publication 525 provides detailed information about gambling income reporting requirements.
Frequently Asked Questions
How many states have legal sports betting in 2025?
As of 2025, 38 states plus Washington D.C. have legalized sports betting in some form, with 30 states offering online/mobile betting platforms and several others considering legislation.
What’s the difference between online and retail sports betting?
Retail sports betting requires visiting a physical casino or sportsbook location, while online betting allows placing wagers through mobile apps or websites from anywhere within state borders. Online betting typically offers more betting options and convenience.
Can I bet across state lines using mobile apps?
No, mobile sports betting apps use geolocation technology to ensure you are physically within state borders when placing bets. Attempting to bet from prohibited states can result in account suspension and legal consequences.
Are there any states where sports betting is completely illegal?
Yes, as of 2025, Utah and Hawaii maintain complete prohibitions on all forms of sports betting. Several other states like Texas and Georgia have limited forms or are still considering legislation.
What types of sports can I bet on in legal states?
Most legal sports betting states allow wagering on professional sports (NFL, NBA, MLB, NHL), college sports (with some restrictions), international sports, and often niche sports like golf, tennis, and MMA. Some states prohibit betting on in-state college teams.
How do I know if a sportsbook is legally operating in my state?
Legal sportsbooks are licensed and regulated by state gaming commissions. You can verify their status through your state’s gaming control board website. Legitimate operators will prominently display their license information and use geolocation verification.
Conclusion
The landscape of sports betting legal states continues to evolve rapidly, with the majority of Americans now having access to regulated sports wagering options. As we move through 2025, the trend toward legalization shows no signs of slowing, with several additional states likely to join the legal market in the coming years.
For bettors, understanding state-specific regulations, responsible gambling resources, and tax obligations is essential for safe and compliant participation. The maturation of legal markets has created consumer protections and oversight that simply don’t exist in the unregulated offshore market, making legal options both safer and more reliable.
As always, bettors should verify current regulations in their jurisdiction and use the responsible gambling tools provided by licensed operators. The continued expansion of legal sports betting represents a significant shift in American gambling policy, creating new entertainment options while generating substantial tax revenue for participating states.
