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Sports Gambling Legal

While gambling is legal under U.S. Federal law, there are significant restrictions pertaining to interstate and online gambling, as each state is free to regulate or prohibit the practice within its borders. All forms of gambling remained legal in Nevada. State sports lotteries remained legal in Delaware, Montana, and Oregon. Jai alai and pari-mutuel betting on horse and dog racing remained legal. In 2011 New Jersey Governor Chris Christie filed a lawsuit saying that the PASPA violated US States’ rights to govern themselves.

2020 has been a remarkable year, to say the least. COVID-19 will be The Story that characterizes the 365 days. But legal sports betting in the US took on a life of its own in 2020 and set the table for an industry that essentially proved virus and recession-proof. It figures to be one of the few “feel-good stories” of the year.

Looking back, there were a few major headlines that characterized the record-year for the US legal sports betting industry. How it navigated the COVID shutdown of retail betting locations and sports itself, the number of states that joined the legal sports betting family, and the emergence of internet-based betting were just a few. Let’s take a closer look.

The Professional and Amateur Sports Protection Act of 1992 effectively outlawed sports betting nationwide, excluding a few states: however, on May 14, 2018, the United States Supreme Court declared the entire law unconstitutional (Murphy v. While sports betting operations in many states are still in their early stages, the legal industry has shown signs of growth. Gamblers bet a total of $1.86 billion in the month of November, a. In July 2019, sports gambling at tribal casinos became legal and legislation has been drawn up to legalize it in all forms, although that measure has not yet been passed. North Carolina’s gaming casinos hit a revenue of $393 million in the last year.

Sports in the Time of COVID

The sports world endured an unprecedented pause in the action in 2020 thanks to COVID-19. “The Bubble” became the way that paused leagues such as the NBA and NHL were able to carry on with their season in March. Fast thinking saved those leagues.

It all started in March with Rudy Gobert’s positive COVID-19 test and the shutting down of the NBA season, a shutdown that lasted 141 days and caused leagues around the world including the NHL and European Football Leagues to follow suit. Casinos in participating states also shuttered during that time.

The cancellation of March Madness, which annually contributes $1 billion to the sports betting industry was the first real sign that the gambling industry was in trouble. MLB’s delayed and shortened 60-game season also put COVID on sports’ front burner.

For months, the sports betting world had to rely on table tennis, sumo wrestling, and Belarussian professional soccer. But then, once North American sports ramped up, bettors enjoyed an unprecedented period in which the NBA, NFL, MLB, and NHL were all playing meaningful games simultaneously, forcing sportsbooks to scramble just to keep up.

Half of US States Poised to Have Their Own Legal Sports Betting Platform

Growth in the legal sports betting industry was remarkable in 2020 despite COVID-19. By the end of the year, 19 states and the District of Columbia had launched live, legal sports gambling. Many others actually made sports betting legal in their states during 2020 by legislation or by referendum on the November Election Ballot.

Illinois, Michigan, Colorado, Tennessee, Montana, New Hampshire, and Washington D.C. all came on board in 2020. States waiting in the wings to launch their own platform, thanks to some work done in 2020 are Maryland, Louisiana, South Dakota, Virginia, North Carolina, and Washington.

Whispers at the end of the year have the “Big-3” states of California, Texas, and Florida at least considering ways to bring a legal platform to their states in order to capitalize on the tangible tax revenues sports betting could bring to their jurisdictions.

Mobile Betting Takes the Lead

Mobile betting sites were the biggest winner in the US legal sports betting scene in 2020, thanks in part to COVID-19. We had record mobile hauls being smashed, new mobile betting sites emerge, Governors temporarily reversing their own in-person sign-up requirements, and even one state that launched a mobile-only platform during the year.

Mobile betting platforms in 2020 separated the “Haves” and the “Have-nots” in the US legal sports betting industry. States like New York that employ a retail-only model didn’t even register on the “success radar” in 2020 and Nevada, the grand-daddy of all betting states, fell behind because of an antiquated in-person sign-up requirement for mobile sites.

All-in-all, betting apps became responsible for just north of 80% of the record-setting National sports betting handles of 2020. In New Jersey alone, $872 million of the insane $931,620,415 November handle, or 93.6% came from internet betting. Nevada, by contrast, saw $344 million come in from mobile apps in November, or just 56.43% of its total.

Barstool Sports, perhaps one of the most anticipated mobile app launches ever came to fruition in 2020. Tennessee, the nation’s first mobile-only platform exceeded expectations during their first full month of operation in November. Illinois’ Governor J.B. Pritzker saw the writing on the COVID wall, and he has temporarily lifted that state’s in-person only sign-up procedure.

It was quite a year for mobile betting in the US. Momentum was definitely created and is expected to continue into 2021 and beyond.

In The End…

2020 was somehow a record-setting year for the US sports betting industry despite the impacts of COVID-19. The 365 days identified just what is important for bettors, and separated the contenders from the pretenders in the race to be America’s most bet-friendly state.

The arrow keeps pointing way up on the US legal sports betting industry as we head into this new year. The October National handle reached $3.25 billion, November should approach $3.5 billion. December, with the return of Basketball, could even eclipse that record-number.

In the end, there wasn’t a whole lot of good that came from the year 2020, but the exponential growth and the overall acceptance of the legal sports betting industry in the US was certainly one.

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

Sports Gambling Legalization Oregon

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.

Sports betting legislation by state

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

Sports gambling legalization

49-50. Idaho and Wisconsin

These states have not had any publicly-announced bills devoted to sports betting legalization.

Unlikely

51. Utah

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.