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The Legal Landscape of Online Sports Betting in the US

The Legal Landscape of Online Sports Betting in the US 1

State Laws on Online Sports Betting

The US Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018, paving the way for states to legalize and regulate online sports betting. Since then, many states have passed laws to allow residents to bet on sports online. However, not all states have legalized online sports betting, and the laws vary from state to state.

As of 2021, 22 states have legalized online sports betting, including Nevada, New Jersey, Pennsylvania, Colorado, and Michigan. In some states, online sports betting is only available through retail sportsbooks located in casinos, while in others, online betting is allowed through stand-alone online sportsbooks.

Some states have more restrictions on the types of bets that can be placed or the sporting events on which bets can be made. For example, in New Jersey, betting on college sports events that take place in the state is prohibited, while residents of Colorado cannot bet on high school sports events.

The Impact of Online Sports Betting on State Revenues

One of the main reasons states have legalized online sports betting is to increase tax revenues. Online sportsbooks pay a portion of their revenues in taxes to the state governments where they operate. In some states, such as New Jersey and Pennsylvania, online sports betting has become a significant source of revenue, generating millions of dollars in taxes every year.

Other states, such as Colorado and Indiana, have also seen a boost in tax revenues since legalizing online sports betting, although the amounts are not as high as in some of the more populous states. Overall, online sports betting has become an important revenue stream for state governments across the US.

The Future of Online Sports Betting in the US

Although online sports betting has taken off in the US since the Supreme Court ruling in 2018, there is still a lot of uncertainty about its future. Some state legislatures have been slow to act, while others have not yet legalized online sports betting at all.

One of the main challenges facing the industry is the lack of federal regulation. With different states having different laws on online sports betting, there is no uniformity in how the industry is governed. This can lead to confusion for operators and consumers alike, and may make it more difficult for the industry to grow and innovate.

Another challenge facing online sports betting is competition from illegal offshore operators. While most consumers prefer to bet on legal, regulated sites, some still turn to unlicensed operators that offer better odds or deposit bonuses. These operators do not pay taxes or follow the same regulations as licensed operators, which puts them at an unfair advantage.


Despite the challenges facing the industry, the legalization of online sports betting has been a positive development for many states in the US. The industry has generated significant tax revenues and created jobs, and has brought a new level of excitement to sports fans across the country. Looking to broaden your understanding of the topic? Check out this handpicked external resource to find more information. Find here!

As more states legalize online sports betting and federal regulations develop, the industry will likely continue to grow and evolve. With the right balance of regulation and innovation, online sports betting has the potential to become a major industry in the US for years to come.

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The Legal Landscape of Online Sports Betting in the US 2