History of Legal Sports Betting in the United States
The legality of sports betting in the United States has undergone a dramatic transformation, shaped by federal legislation, shifting societal attitudes, and landmark Supreme Court decisions. Although gambling has long been part of American culture, the formal legality of sports betting has only recently evolved.
The Professional and Amateur Sports Protection Act of 1992 (PASPA)
In 1992, Congress passed the Professional and Amateur Sports Protection Act (PASPA), a federal law designed to stop the spread of state-sponsored sports gambling. Under PASPA, it became unlawful for states to authorize or license sports betting operations. Only four states were grandfathered in — Nevada, Oregon, Delaware, and Montana — with Nevada being the only one to offer full-scale sports betting.
The Rise of Offshore and Illegal Betting
Despite PASPA’s restrictions, illegal and offshore sports betting flourished. Billions of dollars were wagered annually through unregulated bookmakers and offshore websites, revealing the high demand for legalized, safe, and taxed betting options. The gap between law and reality became increasingly untenable, prompting calls for reform.
New Jersey’s Challenge and the Supreme Court Decision (2018)
New Jersey led the charge against PASPA. The state argued that PASPA infringed on its sovereignty and prevented it from regulating its own gambling industry. The legal battle culminated in the landmark 2018 Supreme Court decision in Murphy v. NCAA, in which the Court struck down PASPA as unconstitutional. The ruling declared that the federal government could not prohibit states from legalizing sports betting, effectively giving each state the authority to regulate sports gambling as it saw fit.
Post-2018 Expansion of Legal Sports Betting
Following the Supreme Court decision, states across the country began legalizing and regulating sports betting. By the end of 2018, states like New Jersey, Pennsylvania, and Mississippi had launched legal sports betting markets. This trend accelerated rapidly in subsequent years.
As of 2025, more than 30 states and the District of Columbia have legalized some form of sports betting, whether in-person at casinos or racetracks, or through online and mobile platforms. States like New York, Illinois, and Michigan have seen significant tax revenues from legal betting markets, and consumer protections have improved substantially.
Federal vs. State Authority
While the federal government no longer restricts sports betting under PASPA, it does enforce other regulations, particularly related to financial transactions, integrity monitoring, and anti-money laundering. However, each state sets its own licensing requirements, tax rates, and eligible sports and bet types.
Global Comparison
In contrast to the U.S., many countries around the world had already legalized and regulated sports betting long before 2018. The United Kingdom, for instance, has had a legal sports betting framework since the Gambling Act of 2005, managed by the UK Gambling Commission.
Conclusion
Sports betting was largely illegal in the United States under PASPA from 1992 until the Supreme Court struck it down in 2018. Since then, the industry has experienced a rapid legal transformation, with dozens of states legalizing and regulating sports wagering. The legal landscape continues to evolve as more states explore legislation and as technology and consumer preferences shift toward mobile betting platforms.
