Sports Betting in the United States: Legal Landscape, Growth, and Future Outlook

The Evolution of Sports Betting Laws in the U.S.

For decades, sports betting in the United States was largely prohibited under the Professional and Amateur Sports Protection Act of 1992 (PASPA). This federal law effectively outlawed sports betting nationwide, with a few exceptions such as Nevada. However, everything changed in May 2018, when the U.S. Supreme Court struck down PASPA in a landmark decision, allowing individual states to legalize and regulate sports betting on their own terms.

Since the repeal of PASPA, a significant number of states have moved quickly to legalize sports wagering, creating a patchwork of laws and regulatory frameworks across the country. As of 2025, over 35 states and Washington, D.C. have legalized sports betting in some form—either retail (in-person), online, or both.

Key States Leading the Industry

New Jersey

New Jersey has emerged as a pioneer in the modern sports betting era. The state fought the legal battle that ultimately led to the repeal of PASPA and quickly launched a thriving online sports betting market. With multiple sportsbooks and competitive mobile apps, New Jersey has become one of the top betting markets in the country.

Nevada

Long before PASPA was repealed, Nevada was the only state with full-scale legal sports betting. Las Vegas continues to be a major hub for sports wagering, attracting tourists and high-rollers from around the world. However, with more states entering the market, Nevada’s dominance has faced increasing competition.

New York

New York legalized online sports betting in 2022, and its massive population has rapidly propelled the state to the top of the revenue charts. With several operators active in the market, including major national brands, New York generates billions in betting handle annually.

Pennsylvania

Pennsylvania has developed a robust sports betting market with both retail and online options. The state’s tax rate on online wagers is among the highest in the country, providing a significant revenue stream for state programs.

Online vs. Retail Sports Betting

Online sports betting has become the dominant force in the industry. The convenience of placing bets from smartphones or computers has made digital platforms the preferred option for most users. States that offer online betting typically see much higher wagering volumes compared to those limited to in-person betting.

Retail sportsbooks, while less popular than their online counterparts, still play an important role—especially in casinos, racetracks, and sports stadiums. Many bettors enjoy the social aspect and excitement of watching games on-site.

Popular Sports and Bet Types

American bettors commonly wager on major professional sports leagues, including the NFL, NBA, MLB, and NHL. College football and basketball also attract significant betting activity, particularly during events like March Madness and bowl season.

The most popular types of bets include:

Moneyline: Picking the outright winner.
Point Spread: Betting on the margin of victory or defeat.
Over/Under (Totals): Wagering on the combined score.
Parlays: Combining multiple bets for a higher payout.
Live Betting: Placing bets during the game as odds update in real time.

Responsible Gambling and Regulation

As sports betting expands, so do concerns about responsible gambling. Most states with legal betting require operators to implement responsible gambling measures such as self-exclusion programs, deposit limits, and partnerships with problem gambling organizations.

State gaming commissions closely monitor sportsbooks to ensure fairness, transparency, and compliance with regulations. Licensed operators must adhere to strict guidelines concerning advertising, data protection, and consumer rights.

The Economic Impact

The legalization of sports betting has created significant economic benefits for states. It has generated:

Tax revenue for public services
Job creation in the tech, hospitality, and gaming sectors
Increased consumer spending and tourism in states with retail sportsbooks

According to industry estimates, the total U.S. sports betting handle exceeded $100 billion in 2023, and this figure continues to grow annually.

The Future of Sports Betting in the U.S.

The future of sports betting in the United States looks promising. Trends to watch include:

Further Legalization: Several more states are considering legislation, and some may introduce online betting soon.
Technological Innovation: The rise of AI, live streaming, and predictive analytics will enhance user experiences.
Microbetting and Esports: Niche markets and real-time microbets are expected to grow in popularity.
Integration with Media: Partnerships between sportsbooks and sports media companies will continue to expand, blurring the lines between entertainment and gambling.

As the market matures, regulation and innovation will shape the trajectory of the U.S. sports betting industry for years to come.