Sports Betting Laws in America Which states allow it, where you can bet online, and what you owe in taxes in 2026

The legal sports betting industry in America was born on May 14, 2018, when the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in Murphy v. National Collegiate Athletic Association. PASPA had effectively banned sports betting in 46 states since 1992, with narrow exemptions for Nevada, Oregon, Delaware, and Montana.

The Court's 6-3 decision held that PASPA violated the Tenth Amendment's anti-commandeering doctrine by prohibiting states from authorizing sports betting. The ruling did not legalize sports betting nationally — instead, it returned the decision to individual states. Since then, the expansion has been rapid: from a single state (Nevada) with full legal sports betting in 2018 to 16 states with legal frameworks by 2026.

The industry has generated tens of billions in annual handle (total amount wagered), with mobile betting accounting for the vast majority of volume in states that allow it. The regulatory approaches vary dramatically — from New York's high-tax, limited-license model to states like New Jersey and Colorado that have embraced competitive, low-barrier markets. Read the full federal analysis →