Legal Online Sports Betting
The United States has always managed to make a living from gambling, going back to the founding fathers who would hold lotteries to attempt to fund much-needed purchases for the country. From this legacy, America has some of the largest casinos and resort towns in the world–and complicated history of gambling legislature to top it all off.
In just the past five years, the repeal of PASPA, the shifting state laws regarding online gambling, and the ongoing challenges to the Federal Wire Act have drastically changed the gambling industry in the United States. For many gamblers, this leaves a lot of questions to be answered about the legality of online play. Here, we’ll break down some of the laws that affect online gambling in the US today and hopefully answer a few of those questions.
Power Balances
Two tiers of legislation make up the legal framework in the United States: federal and state. While state laws apply to the individual states and their residents, federal laws apply to the entire nation. If any state laws that conflict with federal laws then the latter will typically prevail. Presently, a combination of federal laws and state laws determine whether or not online gambling is legal.
Repeal of PASPA
- Wagering on pro and college sports became legal in September of 2019 with both mobile and in-person betting permitted at multiple locations.
- Until the State explicitly makes online gambling (in any form) legal, it is illegal. It is difficult to speculate whether or not the law is strictly enforced. RANK: Patently Illegal. Regulated online gambling is legal in Delaware, and nothing in that bill would tend to make it appear illegal to play at unregulated sites.
- The allowable forms of legal online sports betting may vary drastically from one state or country to another, and wagering on sports events on the internet has become a popular, multibillion-dollar industry. Legal betting online has taken off on multiple levels, with sports betting being one of the most popular legalized options available.
- Notes: Online sports betting was slow to roll out as the Pennsylvania Gaming Control Board was busy (and sluggish) developing regulations for both online casino gambling and sports wagering at the same time. But online sports betting finally arrived in May 2019 and has boomed.
The recent repeal of PASPA in 2018 was one of the biggest exchanges of legislative powers in recent years, which opened up the lawmaking rights surrounding sportsbook regulation to states. Before the repeal, it was illegal for states that hadn’t already established a sportsbook market to decide to do so. Several states that wanted to get in on the sportsbook business took the issue to the courts, arguing that PASPA went against anti-commandeering doctrine. The Supreme Court agreed, repealing PASPA because it violated the tenth amendment, which says that all power not expressly given to the federal government is reserved for the states.
Now each state is allowed to legislate its own sportsbook regulation, opening up new economic avenues. During the COVID-19 lockdowns, some states used this as an opportunity to recoup income after facing financial shortfalls and stoppages. The sports betting market has grown into a billion-dollar industry nearly overnight and continues to climb with online bookmakers becoming increasingly popular. The only problem is that, technically, online gambling is illegal and there is still a lot of grey area when it comes to the crossover of state and federal laws.
Finding the Best Legal Online Sports Betting Sites. Establishing what a trusted and legal online sports betting authority is, shouldn’t be too difficult. All such companies have been given an official license – either from a state or a national body, or an international organization that specializes in issuing remote licenses and is recognized in multiple jurisdictions.
Federal Effect
Both the Federal Wire Act of 1961 and the Unlawful Internet Gambling Enforcement Act are federal laws that limit online gambling modernly. The Wire Act was initially created to criminalize using wire communications to place a bet in another state, but the Department of Justice has gone back and forth with the courts for years about the present-day interpretation of the Act.
At this time, a District Court Judge has ruled that the Federal Wire Act only applies to sports gambling, not all online gambling. In response, the DOJ has filed a notice of its intention to appeal that ruling, believing that the Act is “not uniformly limited to gambling on sporting events or contests.” The UIGEA may not make online gambling illegal outright, but it makes taking unlawful money wagers online criminal, and in a market with so much grey area that can be a big risk for operators.
Online Gambling and You
So what does all of this mean? Is online gambling illegal or not? Well, yes and no. Similar to marijuana laws in the US, state and federal laws are conflicting. There isn’t much risk for individuals who want to gamble online, as long as they are playing on safe and reputable sites. Operators in the US are at much higher risk for prosecution, although the more states that pass pro-online gambling laws and the more public sentiment leans towards allowing online gambling, the less likely it is that federal entities will feel pressure to go after them.
How to Prepare
The most important thing to do when gambling online is to know your state laws and to pick your play sites very carefully. Even if your state has introduced more lax gambling laws, not every site that is available is going to be playing by the rules. You can use a third-party aggregate to find legal online gambling sites in the USA, like those recommended from oceanalaw.com for example, that will vet your options for you and even show you some of the best welcome promos available. Practice good cyber hygiene and keep an eye on the developing legislation and politics surrounding online gambling, so any sudden changes don’t catch you off guard.
Interesting Related Articles: “What to Expect From The Gambling Industry in 2021“
After New Jersey's Supreme Court victory in May 2018, any state that wishes can legalize sports betting.
At the same time various state lawmakers are considering sports betting legislation, Congress is too. Senators Chuck Schumer, D-N.Y., and now-retired Orrin Hatch, R-Utah, co-introduced comprehensive sports betting legislation at the end of 2018. On Sept. 27, 2018 the House Judiciary Committee held a formal hearing on the topic.
The dual track of proposals -- state and federal -- have increased in frequency since the start of 2017.
To measure the change in the landscape, we ranked all 50 states and the District of Columbia in terms of how likely it is for each jurisdiction to offer full-scale legal sports betting. A brief synopsis for the active states is included, with updates to follow.
Last updated on November 3, 2020.
Already there
1. Nevada
No longer the only state to permit a wide variety of legal sports betting, Nevada is a mature market that has existed for decades. Given its long history in successfully offering regulated sports wagering, many states might look to Nevada for best practices.
Type of wagering permitted: In-person and mobile
Notable prohibitions: None
Number of casinos (as of Dec. 31, 2019): 223
Population: 3,034,392 (2,246,259 21+)
2. Delaware
On June 5, 2018, Delaware moved to offer single-game betting on a number of different sports at three casinos in the state. Expanded sports wagering options could take place at additional locations or online. Delaware's authorization of what Gov. John Carney described as 'a full-scale sports gaming operation' happened less than a month after the Supreme Court ruled that the federal law restricting single-game betting to Nevada was unconstitutional.
Type of wagering permitted: In-person
Notable prohibitions: No betting on games involving in-state college teams
Number of casinos (as of Dec. 31, 2019): 3
Population: 967,171 (726,161 21+)
3. New Jersey
On June 11, 2018, Gov. Phil Murphy signed the sports betting bill that had passed the previous week. A William Hill sportsbook at Monmouth Park took the first bets on Thursday, June 14 at 10:30 a.m. ET. Gov. Murphy was the first customer in line. The Borgata in Atlantic City booked sports bets 30 minutes later. Other sportsbooks in New Jersey opened soon thereafter. For example, FanDuel's first sportsbook at the Meadowlands opened its doors on July 14.
Type of wagering permitted: In-person and mobile
Notable prohibitions: No betting on games involving in-state college teams and collegiate events held within the state
Number of casinos (as of Dec. 31, 2019): 9
Population: 8,908,520 (6,634,683 21+)
4. Mississippi
Two casinos owned by MGM Resorts booked their first sports bets in Mississippi on Aug. 1, 2018. Mississippi enacted a new law in 2017 that allowed for sports betting pending a favorable decision by the Supreme Court. In June 2018, the Mississippi Gaming Commission adopted implementing regulations that require all betting to take place in person, with mobile wagering to be considered later.
Type of wagering permitted: In-person
Notable prohibitions: None
Number of casinos (as of Dec. 31, 2019): 29
Population: 2,986,530 (2,153,795 21+)
5. West Virginia
On Aug. 30, 2018, West Virginia became the fifth state to offer legal and regulated sports betting when the Hollywood Casino -- a sportsbook owned by Penn National -- opened its doors. The move came six months after the West Virginia legislature passed a new bill with the West Virginia Lottery Commission serving as the chief regulator.
Type of wagering permitted: In-person and mobile
Notable prohibitions: None
Number of casinos (as of Dec. 31, 2019): 5
Population: 1,805,832 (1,375,788 21+)
6. New Mexico
On Oct. 16, 2018, the Santa Ana Star Casino & Hotel booked its first sports bet in partnership with Nevada-based USBookmaking. Although New Mexico has not passed any new sports betting legislation since the Supreme Court's decision, the move by the Santa Ana Star Casino & Hotel was made via a gaming compact with the state. According to Nedra Darling, spokeswoman at the Department of the Interior's Office of Indian Affairs -- the federal agency in Washington, DC that oversees tribal gaming compacts -- the New Mexico compacts permit 'any or all forms of Class III Gaming,' a category in the federal regulations that specifically includes '[a]ny sports betting and pari-mutuel wagering.'
Type of wagering permitted: In-person
Notable prohibitions: No betting on games involving in-state college teams
Number of casinos (as of Dec. 31, 2019): 32
Population: 2,095,428 (1,529,540 21+)
7. Pennsylvania
The Hollywood Casino at Penn National Race Course booked the first legal sports bets in Pennsylvania in mid-November 2018. The move came just over a year after Gov. Tom Wolf signed a new sports betting bill as part of a broad legislation push that included online poker and DFS. The October 2017 bill became effective after the Supreme Court's May 2018 ruling upending the federal ban on single-game betting outside of Nevada.
Type of wagering permitted: In-person and mobile
Notable prohibitions: None
Number of casinos (as of Dec. 31, 2019): 12
Population: 12,807,060 (9,645,705 21+)
8. Rhode Island
The Twin River Casino in Lincoln opened its doors for legal sports betting on Nov. 26, 2018. The move came five months after Gov. Gina Raimondo signed the state budget, which included language allowing sports betting. Only two locations would be allowed to offer sports betting under the law, with the state's lottery providing regulatory oversight. In early 2019, the law was tweaked to provide for mobile betting.
Type of wagering permitted: In-person and mobile
Notable prohibitions: No betting on games involving in-state college teams
Number of casinos (as of Dec. 31, 2019): 2
Population: 1,057,315 (800,838 21+)
9. Arkansas
On July 1, 2019, the Oaklawn Racing Casino Resort booked the first legal sports bets in Arkansas. Two other retail locations opened sportsbooks in the subsequent months. Sports betting is regulated by the Arkansas Racing Commission.
Type of wagering permitted: In-person
Notable prohibitions: No betting on games involving in-state college teams
Number of casinos (as of Dec. 31, 2019): 3
Population: 3,013,825 (2,191,256 21+)
10. New York
On July 16, 2019, the first legal sports bets were placed in New York. J. Gary Pretlow -- a New York lawmaker and chair of the state's racing and wagering committee -- was among the first to place a wager at the Rivers Casino in Schenectady. The opening of a legal sportsbook came six years after New York passed a law to allow sports betting at four on-site locations, all in upstate New York. After lying dormant for years, the law was revived after the Supreme Court ruling in 2018 and the issuance of regulations earlier this year. The current law does not allow for mobile wagering.
Type of wagering permitted: In-person
Notable prohibitions: No betting on games involving in-state college teams
Number of casinos (as of Dec. 31, 2019): 28
Population: 19,542,209 (14,724,807 21+)
11. Iowa
Legal sports betting arrived in Iowa on Aug. 15, with multiple operators all opening their doors to customers on the first day. The move came three months after Iowa Governor Kim Reynolds signed into a law a comprehensive bill to legalize sports betting in the Hawkeye State. Operators must pay a $45,000 licensing fee and there is a 6.75 percent tax on revenue. The new law permits mobile wagering. Betting on college sports is permitted, but certain kinds of in-game prop bets involving college games are banned. The new law bestows the Iowa Racing and Gaming Commission with authority to regulate sports betting.
Type of wagering permitted: In-person and mobile
Notable prohibitions: No prop betting on in-state college athletics
Number of casinos (as of Dec. 31, 2019): 23
Population: 3,156,145 (2,286,374 21+)
12. Oregon
Legal sports betting returned to Oregon on Aug. 27 after a long hiatus, with the first bets booked on-site at the Chinook Winds Casino Resort in Lincoln City. Oregon is one of a small number of states that already had a law on the books permitting some forms of sports betting, so the resumption of wagering did not require the legislature to pass any new law or have the governor amend an existing tribal-state compact. In mid-October, mobile sports betting arrived in Oregon too, with the state-run lottery overseeing the launch of a new website and app.
Type of wagering permitted: In-person and mobile
Notable prohibitions: None at the Chinook Winds Casino Resort, but sportsbook operated by the Oregon Lottery does not permit betting on games involving in-state colleges
Number of casinos (as of Dec. 31, 2019): 10
Population: 4,190,713 (3,167,912 21+)
13. Indiana
Legal sports betting opened up at a number of locations in Indiana on Sept. 1. The Indiana Gaming Commission oversees all sports betting regulations and has issued licenses to operators across the state. Wagering on both college and pro sports is permitted, but betting on esports and high school sports is banned. Indiana's new law allows for both mobile and in-person wagering. Regulations permit sports leagues or colleges to request 'to utilize a geofence to prohibit wagers at the location of a particular sporting event.'
Type of wagering permitted: In-person and mobile
Notable prohibitions: No prop betting on in-state college athletics
Number of casinos (as of Dec. 31, 2019): 14
Population: 6,691,878 (4,842,337 21+)
14. New Hampshire
Governor Chris Sununo placed the ceremonial first legal sports wager -- on the New England Patriots -- in New Hampshire on Dec. 30, 2019. The state's lottery is in charge of regulatory of regulatory oversight. Both retail and mobile sports betting will be permitted on a wide variety of sports, although no betting on New Hampshire's in-state colleges is allowed.
Type of wagering permitted: Mobile
Notable prohibitions: No betting on in-state colleges
Number of casinos (as of Dec. 31, 2019): 0
Population: 1,356,458 (1,042,882 21+)
15. Illinois
Legal sports betting arrived in Illinois on March 9, 2020. The move came less than a year after the Illinois legislature passed a broad gaming bill that allowed for both online and in-person sports betting. With Governor J.B. Pritzker's signature, the new law also provided for betting on-location at venues such as Wrigley Field. Operators and certain data providers are required to obtain a license under the new law.
Type of wagering permitted: In-person and mobile
Notable prohibitions: No wagering on minor leagues or Illinois college teams
Number of casinos (as of Dec. 31, 2019): 10
Population: 12,741,080 (9,391,158 21+)
16. Michigan
Legal sports betting in Michigan commenced on March 11, 2020, with two Detroit-area casinos launching on the same day. The move came less than three months after Governor Gretchen Whitmer signed the 'Lawful Sports Betting Act' into law. The new law provides for wagering on a wide variety of sports, including college contests.
Type of wagering permitted: In-person and mobile
Notable prohibitions: None
Number of casinos (as of Dec. 31, 2019): 27
Population: 9.995,915 (7,428,72721+)
17. Montana
Legal sports betting arrived in Montana in March 2020. The move came after Governor Steve Bullock formally signed into law a 28-page bill that brought sports wagering to Big Sky country via the state's lottery. Governor Bullock cited the Montana Lottery's 'proven track record of responsibility and integrity' when signing the bill.
Type of wagering permitted: In-person
Notable prohibitions: None
Number of casinos (as of Dec. 31, 2019): 13
Population: 1,062,305 (793,151 21+)
18. Colorado
May 1, 2020 marked the launch of legal sports betting in Colorado, with multiple operators allowing residents to open accounts online and place wagers. The move came less than six months after Colorado voters -- by a narrow margin -- approved a ballot measure that would provide 'for the regulation of sports betting through licensed casinos.' Both mobile and retail sports betting are permitted. Tax revenue from sports betting will help fund various state water projects.
Type of wagering permitted: In-person and mobile
Notable prohibitions: None
Number of casinos (as of Dec. 31, 2019): 35
Population: 5,695,564 (4,210,663.00 21+)
19. Washington, D.C.
In June 2020, the D.C. Lottery launched its 'GameBetDC' platform allowing consumers 'to wager while in the District on major sports worldwide' via computer or mobile device. Sports betting in nation's capital followed the passage of the Sports Wagering Lottery Amendment Act of 2018 and a Congressional review period during which time Congress did not formally object. The Office of Lottery and Gaming provides regulatory oversight of all sports wagering in D.C.
Type of wagering permitted: In-person and mobile
Notable prohibitions:No betting on games involving colleges located in D.C.
Number of casinos (as of Dec. 31, 2019):None
Population: 705,749
20. Tennessee
Regulated sports wagering -- all online -- launched on November 1, 2020 in Tennessee with four licensed operators offering a wide variety of options. The 'Tennessee Sports Gaming Act' permits statewide mobile sports betting without any brick-and-mortar anchor. As such, there are no in-person retail sports betting locations in the state. Subject to an exception, Tennessee's new law requires all licensed operators to 'exclusively use official league data for purposes of live betting.'
Type of wagering permitted: Mobile only
Notable prohibitions:None
Number of casinos (as of Dec. 31, 2019):None
Population: 6,829,174
On-deck circle
21. North Carolina
On July 26, 2019, Governor Roy Cooper signed into a law a bill to 'allow sports and horse race wagering on tribal lands,' with such betting designated as a 'Class III' gaming activity under the state compact. The new law permits betting on both college and professional sports, but all bettors must place their wagers in-person at one of two retail locations.
22. Washington
Governor Jay Inslee signed Washington's sports betting bill into law on March 25, 2020. The new law permits sports wagering at Class III tribal casinos in the state. Mobile sports wagering is not allowed statewide, but is permitted when on-site at a licensed tribal casino. Betting on an 'esports competition or event' is allowed, but the new law bans wagering on games involving in-state colleges or minor league professional events. The new bill delegates regulatory oversight to the Washington State Gambling Commission.
23. Virginia
After some back-and-forth between Governor Ralph Northam and the legislature, legalized sports wagering was approved in the Commonwealth of Virginia in April 2020. Online betting is allowed, but wagering is not permitted on Virginia-based college sports or certain youth sports.
24. Maryland
In November 2020, Maryland voters approved 'sports and events betting for the primary purpose of raising revenue for education' by about a 2-1 margin. A regulatory framework must be created by Maryland lawmakers before any sports wagering takes place. The Maryland referendum would potentially allow for both in-person and mobile sports betting throughout the state.
25. South Dakota
On November 3, 2020, voters in South Dakota approved a ballot measure permitting 'sports wagering in Deadwood.' Other tribal locations in South Dakota could see the arrival of regulated sports betting too. State lawmakers must now establish a regulatory apparatus and tax rate for legalized sports wagering.
26. Louisiana
In November 2020, voters in the vast majority of Louisiana's 64 parishes approved a ballot measure permitting 'sports wagering activities and operations.' As a result, regulated sports wagering could come to New Orleans and certain other cities as early as 2021. Lawmakers will be tasked with setting up a regulatory scheme during an upcoming state legislative session.
Moving toward legalization
All of these states have seen some degree of legislative activity towards the legalization of sports betting the past few years.
27. Oklahoma
In April 2020, two federally-recognized tribes reached agreement with Oklahoma Governor Kevin Stitt on new gaming compacts that include sports betting. On June 8, 2020, Governor Stitt announced that the Department of the Interior had approved the compacts, paving the way for sports betting to start in Oklahoma as soon as the 'compacts are published in the Federal Register.' A bipartisan group of state lawmakers, along with Oklahoma's attorney general, have expressed opposition to the expansion of sports betting in Oklahoma and the prospect of legalized sports wagering remains uncertain.
28. Maine
On the last day of the state's 2019 legislative session -- June 19 -- Maine lawmakers passed 'An Act to Ensure Proper Oversight of Sports Betting in the State.' Shortly thereafter, the governor vetoed the bill. The legislature could re-introduce the bill later.
29. Nebraska
On November 3, 2020, Nebraska voters approved certain amendments to its state constitution legalizing 'all games of chance.' If the new constitutional amendments are construed to include wagering on sporting events, legalized sports betting could arrive in Nebraska upon the establishment of certain regulations.
30. Connecticut
31. Kentucky
32. Massachusetts
33. Minnesota
34. Missouri
35. Kansas
36. South Carolina
37. California
39. Ohio
40. Arizona
41. Hawaii
42. Texas
43. Georgia
44. Vermont
45. Alabama
46. Florida
47. Alaska
48. Wyoming
No legalization activity ... yet
49-50. Idaho and Wisconsin
These states have not had any publicly-announced bills devoted to sports betting legalization.
Unlikely
Best Legal Online Sports Betting
51. Utah
Legal Online Sports Betting Illinois
Utah's anti-gambling stance is written into the state's constitution. Any change to existing state policy toward gambling would be a massive departure from decades of opposition to any form of gambling, including lottery tickets, table games and sports betting.