US sports betting laws explained

How US sports betting laws work in 2026

There is no national sports betting license in the United States. Since 2018, each state legislature decides whether its residents can bet on sports, whether bets can be placed on a phone or only at a counter, who may hold a license, and what tax operators pay. Tribes add a second layer: in several states, sports wagering exists only at tribal casinos under compacts with the state.

Federal law hasn't disappeared. The Wire Act still governs interstate betting transmissions, UIGEA still restricts payments to unlawful gambling businesses, and the IRS still taxes winnings. But the yes-or-no question, can I bet on sports here, is answered by state law. Our US gambling law hub puts sports betting next to casinos, poker and fantasy.

Murphy v. NCAA: the ruling behind legal sports betting

For decades the Professional and Amateur Sports Protection Act (PASPA) barred states from authorizing sports gambling. A challenge reached the Supreme Court, and on May 14, 2018 the Supreme Court ruled 6-3 in Murphy v. National Collegiate Athletic Association, in an opinion by Justice Alito.

The Court held that PASPA's ban on states authorizing sports betting violated the Constitution's anticommandeering rule, because Congress cannot order state legislatures what laws to pass or keep. The anti-licensing provision had the same flaw, no part of PASPA could be saved, and the whole statute fell. You can read the Supreme Court's opinion in Murphy v. NCAA (opens in a new tab) or our plain-English summary on PASPA and Murphy v. NCAA.

The ruling did not legalize sports betting anywhere. It handed the choice back to the states, and the map below is the result of state-by-state decisions since then.

The Wire Act and online sports betting law

The Wire Act of 1961, 18 U.S.C. § 1084 (opens in a new tab), makes it a crime for a person "engaged in the business of betting or wagering" to knowingly use a wire communication facility to send interstate or foreign bets, or information assisting bets on any sporting event or contest. The penalty is a fine, up to two years in prison, or both. By its wording it targets operators, not individual bettors.

Subsection (b) exempts news reporting and information assisting bets sent from one place where sports betting is legal to another place where it is legal. The Act's focus is interstate: a bet placed and accepted inside a single state that has legalized sports wagering is governed mainly by that state's own law.

The Department of Justice has changed its reading over time. A 2011 opinion limited the Act to sports; a 2018 opinion said most of its prohibitions also reach non-sports gambling. On January 20, 2021 the First Circuit, in New Hampshire Lottery Commission v. Rosen (opens in a new tab), held that the Act applies only to bets on sporting events or contests. For sports betting, every reading agrees: the Wire Act applies.

Sports betting laws by state: online, retail-only or not legal

The table groups states by what their sports betting law allows, as recorded by regulators or, where marked, by third-party reports. Launch dates are given only where a source states them. For your state's details, open its state hub and the sports betting sub-page.

Nevada has allowed sports betting since 1949, according to a third-party report, and allows statewide mobile betting. Our sources didn't confirm a status for Alaska, Oklahoma or Rhode Island, and West Virginia's online launch year isn't published. Check the regulator directly for those states.

Sports betting law timeline

Several more states are still debating. Georgia's HB 686 sat in subcommittee in 2026, South Dakota's SJR 504 passed the Senate but died in a House committee, and a Nebraska petition would allow online betting from January 1, 2027 if voters approve it, though its ballot status was not confirmed in our sources.

Tribal compacts and sports wagering

In some states, sports betting runs mainly or only through tribes. Arizona's event wagering rests on HB 2772 and amended tribal-state compacts. Washington allows sports wagering only at authorized tribal casinos, and North Dakota and New Mexico have in-person sportsbooks at tribal casinos. Florida's single legal online sportsbook belongs to the Seminole Tribe.

These arrangements sit under the Indian Gaming Regulatory Act's compact system. Our tribal gaming page explains how compacts work and why they matter for online expansion.

Offshore sportsbooks: what state regulators say

Offshore sportsbooks take bets from US players without a license from any state. Regulators have been explicit about them:

• Florida: on February 3, 2025 the Florida Gaming Control Commission sent cease-and-desist letters to BetUS, Bovada and MyBookie, warning "Bettor beware." Florida law makes sports wagering a felony under Fla. Stat. 849.14.
• Massachusetts: the attorney general sent cease-and-desist letters to BetOnline.ag and Sportsbetting.ag on June 25, 2025 (opens in a new tab), and the Massachusetts Gaming Commission warns that offshore operators may refuse to pay winning bets.
• Washington: the Gambling Commission sent a second cease-and-desist notice to Bovada on September 19, 2025, citing RCW 9.46.240, which makes knowingly transmitting or receiving gambling information over the internet a class C felony.
• Michigan: the Michigan Gaming Control Board says it cannot help players recover deposits from offshore sites, which also don't honor the state's responsible gaming database.

In practice, an offshore sportsbook gives you no state regulator to complain to and no state rules on how your balance is held. Our pages on cease-and-desist letters and offshore casino legality cover the same issue for casinos.

Prediction markets and sports event contracts

Exchanges regulated by the Commodity Futures Trading Commission have offered contracts on sports outcomes, and states are pushing back. Connecticut ordered Kalshi, Robinhood Derivatives and Crypto.com to stop unlicensed sports wagering on December 3, 2025. Nevada's Gaming Control Board told licensees in October 2025 that sports event contracts are wagers. Missouri's attorney general ordered unlicensed prediction markets to stop, and Kentucky's attorney general sued Kalshi in June 2026.

In Congress, several 2026 bills would bar sports contracts on CFTC exchanges, and the SAFE Bet Act of 2025 (S. 1033 / H.R. 2087) would set federal minimum standards for state-regulated sports betting. The CRS lists none of the prediction-market bills as enacted. See prediction markets for the full list.

Taxes on sports betting winnings

Sports betting winnings are taxable federal income. Under the IRS instructions for Form W-2G (opens in a new tab), a sportsbook issues a W-2G for 2026 payouts of $2,000 or more that are also at least 300 times the wager. Regular withholding of 24% applies where winnings minus the wager exceed $5,000.

Example: a $10 parlay that pays $3,010 returns $3,000 of winnings, which is 300 times the stake and over $2,000, so it triggers a W-2G. Because $3,000 is under $5,000, regular withholding does not apply. A $500 bet that wins $2,500 doesn't meet the 300x test, but the $2,500 is still taxable income you must report.

Losses are deductible only up to your gains if you itemize, and from tax year 2026 the deduction is reported to be capped at 90% of losses; check IRS guidance. See gambling taxes and the W-2G form.

How to check whether a sportsbook is legal where you are

1. Confirm your state allows sports betting and whether it allows mobile betting or only in-person bets.
2. Find the regulator's list of licensed sportsbooks. Illinois, Michigan, New York, Tennessee and Wyoming all publish one; our state regulators page links each agency.
3. Match the exact brand name and app to that list.
4. Check the age limit: 21 in most states, but 18 in New Hampshire and DC.
5. Treat any site missing from the state's list as unlicensed, whatever it claims. Arizona's regulator, for example, warns that claims online casinos are legal there should be treated as highly suspicious.

Sports betting and problem gambling help

The house edge built into sports betting odds means bettors as a group lose over time. Set a budget, avoid chasing losses after a bad weekend, and use the limits licensed apps offer. Free, confidential help is available 24/7 from the National Problem Gambling Helpline at 1-800-MY-RESET (1-800-697-3738), and our helpline guide lists chat and state programs.

Online casino offers and sports betting laws

We don't partner with sportsbooks, and neither casino below takes sports bets. Slot Madness and SlotoCash are offshore online casinos centered on slots. No US state licenses them, so state sports betting protections don't apply, and you should check your own state's law on online casinos first. The Michigan Gaming Control Board named Slot Madness in actions announced August 14, 2025 and SlotoCash on October 8, 2026, calling such sites illegal offshore operators.

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Both offers are slot-focused; table games and video poker are often excluded or weighted lower. The terms shown at sign-up apply. We earn a commission from these links.

21+ (18+ where allowed). Every casino game has a built-in house edge, so over time you should expect to lose what you stake. Set a budget before you play and stop when it’s gone: responsible gambling tools and free help. Gambling problem? Call or text 1-800-MY-RESET (1-800-697-3738).