Did you know that in 2023, legal sports betting in the U.S. brought in a staggering $11.04 billion in revenue? And by 2024, sportsbooks smashed that record again. The market reportedly hit $13.71 billion, setting a trend jump of around 25% per annum.
It’s all part of a massive shift that started in 2018, when the Supreme Court’s Murphy v. NCAA decision overturned the federal ban on sports betting. Since then, nearly 40 states have opened the door to legal sports wagering, now becoming another way to destress.
J ust because betting is legal doesn’t mean the rules are the same everywhere. You’re probably wondering if you can bet online in your state, o r maybe you’d like to find out how much taxes are cutting into the action.
Let’s walk you through the key differences in regulations from state to state, so you’ll know exactly what’s allowed and what’s not.
Legal Status & Where You Can Place Bets
The aftermath of Murphy v. NCAA left the question of legality up to state legislatures. As of mid‑2025, we see a huge shift happening.
- Legal sports betting (retail or mobile) is accepted in 38 states plus Washington, D.C. . That’s up from just three before 2018.
- A growing number of locales, such as Florida, North Carolina, Kentucky and Vermont, joined the fold in 2023–24.
- S tates such as Texas, Utah and Hawaii still ban all forms of sports betting.
What does that mean for you as a player?
- In retail-only states such as Montana and Washington, your only option is to bet in person at licensed venues.
- Online betting allowed in states such as New Jersey, Illinois, Michigan and Massachusetts offers the convenience of wagering from your phone or laptop.
Choosing Retail vs. Online Access
Whether you need to step into a casino or can bet from your couch depends on which state you live in.
- Retail only: Montana, Nebraska, New Mexico and Washington (where mobile is prohibited) restrict sports wagering to in-person locations.
- Both retail and online: The majority, including New Jersey, Michigan and Arizona, provide full flexibility.
- Online only: A few, such as Tennessee and Vermont, exclusively allow mobile wagering without any in-person options.
For convenience and access, states with both options offer the best of both worlds.
Taxes & Licensing Fees
Most states tax the operators’ gross revenue, not your winnings. Although this may come as good news, rates vary wildly.
- Low-tax models: Nevada (~6.75%) and Iowa offer attractive conditions for operators and bettors.
- High-tax regimes: New York/New Hampshire levy around 51% on sportsbook gross revenue.
- In-between: Massachusetts charges 15% on retail and 20% on online sportsbooks. Illinois and Pennsylvania sit around the 20% mark.
Plus, don’t forget federal wagering excise taxes. While these are usually collected from operators at about 0.25% per wager, they may indirectly impact odds.
Why it matters: Lower tax burdens can translate into better odds and overall better value for players.
Allowed Bets And College Sports Rules
Not all bet types are available everywhere. Some states ban bets on in-state college teams or player props to avoid conflicts of interest. Illinois even prohibits wagers on Illinois-based collegiate athletes, while Arkansas and Michigan are taking a more relaxed stance.
Prop bets and live wagering is allowed in most jurisdictions, but states such as Indiana greatly restrict props on individual players. Exotics, such as parlays, futures and novelty bets, are generally permitted, though exact rules and limits vary.
If college sports are your thing, always check your state’s fine print before placing that player prop on a local team.
Market Models: Open vs. Limited Competition
Each state regulates the number of sportsbook operators differently. Here’s a simple overview that can help you understand where your state currently sits.
- Open markets (New Jersey, Illinois): Multiple operators can apply for licenses, leading to high competition, better bonuses and improved odds.
- Limited-license states (New Hampshire, Maine with tribal exclusives, some tribal-only markets): Fewer providers, which often leads to reduced competition and fewer offerings.
- Tribal exclusives: In states governed by tribal compacts (Maine), tribes might hold exclusive rights to mobile or in-person sportsbooks.
With fewer competitors, some states restrict the types of bonuses and incentives available to bettors.
Emerging Trends & What’s Next
The landscape continues to shift. Take Ohio, for example. After launching its sports betting market in 2023, the state is now exploring the legalization of online casinos as the next step in expanding the market.
Meanwhile, Texas is considering retail-only sports betting, potentially tied to new resort casinos, although legislative efforts there have hit a few roadblocks. Still, the momentum hasn’t disappeared, and many insiders believe it’s only a matter of time before things move forward.
Other states such as South Carolina, Georgia and Missouri are also deep in legislative discussions this year. Bills are on the table that could reshape local betting markets in the near future.
It’s not just about where you can place a bet. It’s about how the industry itself is changing. As technology advances, we can expect to see bigger conversations around:
- Live, in-play betting rules
- The use of AI to set odds
- Stronger consumer protections such as those proposed in the SAFE Bet Act
- Tighter age restrictions
- More limits on advertising
There’s also growing concern over the rise of “speed betting,” which offers rapid-fire wagers and has been flagged as particularly addictive for younger bettors.
Conclusion
Betting regulations across U.S. states resemble a colorful mosaic. While most states now allow sports wagering, the freedom and specifics vary dramatically.
Before placing a bet:
- Confirm whether your state allows online, retail or both.
- Understand the bets you can place, especially college sports and props.
- Compare operators’ odds and bonuses, which fluctuate with market competition and tax rates.
Whether you’re a mobile-first bettor or like the thrill of retail, knowing these nuances ensure you stay compliant. It’s also important to get the most from your wagers, of course. Keep this guide handy (and your state’s legislation page bookmarked) and you’ll navigate the betting world confidently, regardless of where you live.
We will strive to keep you informed on the proceedings, so your next bet is always a smart one!
