The History of Sports Betting in the United States

Early Roots of American Sports Betting

Sports betting in the United States has a long and complex history that dates back to the 19th century. In the early days, informal wagers were placed on horse races and boxing matches, especially in urban centers like New York and Chicago. Bookmaking was largely unregulated, and many betting operations were run by criminal syndicates. This led to public concern about corruption and match-fixing, particularly during the infamous 1919 Black Sox scandal, in which eight Chicago White Sox players were accused of intentionally losing the World Series in exchange for money from gamblers.

Legal Restrictions and the Rise of the Black Market

Throughout the 20th century, lawmakers in the U.S. sought to restrict gambling due to its association with organized crime. The Wire Act of 1961 made it illegal to use wire communication for sports betting across state lines, effectively targeting illegal bookmaking operations. In 1992, the Professional and Amateur Sports Protection Act (PASPA) was enacted, banning sports betting nationwide except in states that already had legalized it—namely Nevada, Oregon, Delaware, and Montana. Of these, Nevada remained the only state with legal single-game sports betting, and it maintained a monopoly on the legal market for decades.

The Influence of Las Vegas

From the 1940s onward, Las Vegas developed into the sports betting capital of the United States. Legalized sportsbooks flourished under the oversight of the Nevada Gaming Commission. Tourists from across the country traveled to Vegas to legally wager on NFL, MLB, NBA, and college games. The introduction of point spreads, over/under lines, and moneylines in sportsbooks helped standardize the betting process and made it more appealing to casual bettors. Vegas remained the sole destination for legal sports wagering until the 21st century.

The Digital Age and Off-Shore Betting

The late 1990s and early 2000s saw the rise of online betting platforms. However, because of PASPA and the Wire Act, these platforms operated offshore, in jurisdictions like Costa Rica or Antigua. Americans wagered billions of dollars annually on these sites, even though they were technically illegal. The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 further attempted to curb online betting by targeting financial transactions related to unlawful gambling operations. Still, enforcement remained difficult, and illegal online sportsbooks continued to flourish.

The Fall of PASPA and a New Era

The biggest turning point came in May 2018, when the U.S. Supreme Court struck down PASPA in the case Murphy v. NCAA. This landmark decision gave individual states the right to legalize and regulate sports betting within their borders. New Jersey was among the first to act, quickly launching sportsbooks both in physical locations and online. Other states soon followed suit, including Pennsylvania, Indiana, Colorado, and Illinois.

Expansion Across the United States

Since the fall of PASPA, the sports betting industry has exploded. As of 2025, over 30 states have legalized sports betting in some form, whether online, retail, or both. Major sports leagues such as the NFL, NBA, and MLB have entered into partnerships with sportsbooks, a dramatic reversal from their previous anti-gambling stance. Betting is now integrated into live broadcasts, team sponsorships, and official league apps.

Economic and Social Impact

Legal sports betting has become a multi-billion-dollar industry, contributing tax revenue to state governments and creating jobs in tech, hospitality, and media. However, the expansion has also reignited concerns about problem gambling and the potential impact on youth and college sports. As more states legalize betting, regulators continue to grapple with how to ensure integrity, protect consumers, and prevent addiction.

Conclusion

The history of sports betting in the United States is a story of prohibition, innovation, and eventual legalization. From backroom bookies to billion-dollar sportsbooks operating in plain sight, the journey reflects changing attitudes toward gambling in American culture. As technology and regulation evolve, the future of sports betting will likely become even more mainstream, accessible, and complex.