The Legalization of Sports Betting in the United States
The legalization of sports betting in the United States is a story shaped by decades of regulation, political debate, and shifts in public perception. The most significant turning point came in 2018, but its origins trace back much further.
The PASPA Era: 1992–2018
In 1992, Congress passed the Professional and Amateur Sports Protection Act (PASPA), a federal law that effectively banned sports betting in most states. The act prohibited states from authorizing or licensing sports betting, though it made exceptions for four states—Nevada, Oregon, Delaware, and Montana—where some forms of betting were already in place. Nevada was the only state allowed full-scale sports wagering, becoming the de facto hub for legal sports betting in America.
The intention behind PASPA was to preserve the integrity of sports and prevent the spread of gambling. However, critics argued that the law drove billions of dollars in bets to illegal offshore markets and local bookies, depriving states of potential tax revenue and consumer protections.
The Supreme Court Decision: May 14, 2018
The landscape of sports betting changed forever on May 14, 2018, when the United States Supreme Court struck down PASPA in the landmark case Murphy v. National Collegiate Athletic Association. The Court ruled that PASPA violated the Tenth Amendment, which reserves powers not delegated to the federal government to the states.
This decision gave individual states the authority to legalize and regulate sports betting. The ruling did not legalize sports betting nationwide, but rather removed the federal ban, allowing each state to choose its own path.
Rapid Expansion Across States
Following the Supreme Court’s decision, many states acted quickly to capitalize on the opportunity. New Jersey, which had led the legal battle against PASPA, launched legal sports betting just weeks after the ruling. Other states such as Delaware, Pennsylvania, Mississippi, and West Virginia followed suit within months.
As of 2025, over 30 states and Washington, D.C. have legalized sports betting in some form, whether retail (in-person) or online. States like New York, Michigan, and Illinois have emerged as major markets, offering robust online betting platforms with multiple operators.
Economic and Cultural Impact
The legalization of sports betting has transformed the American gambling industry. Billions of dollars are wagered annually, and states have collected hundreds of millions in tax revenue. It has also driven innovation in the sports and media sectors, with sportsbooks partnering with major leagues, broadcasters, and tech companies.
Additionally, the expansion of sports betting has led to enhanced regulations and responsible gambling initiatives to protect consumers. Legal operators must comply with strict standards around age verification, data security, and transparency.
Conclusion
Sports betting became legal on a state-by-state basis following the Supreme Court’s decision to strike down PASPA in May 2018. While Nevada had long enjoyed legal status, it was this ruling that opened the door for widespread legalization across the United States. The years since have seen a dramatic shift in both law and culture, ushering in a new era for American sports and entertainment.
