Sports Betting Legalization In Many US States

In the past couple of years, many US states started legalizing sports betting and online gambling. After all, they became well aware of the benefits that these industries bring. So far, there are over 25 states that have legalized land-based and/or online betting. 

Reports state that in the coming years, several other regions will start making moves towards legal sports betting. That’s what we wanted to discuss in this article. We’ll take a look at how sports betting started expanding, what was the cause, its benefits, etc. 

How Sports Betting Started Expanding in the USA? 

Everything began in 2018 when the US Supreme Court declared the Professional and Amateur Sports Protection Act (PASPA) unconstitutional. This act was the key “ingredient” that withheld states from legalizing betting on both college and professional sports. 

PASPA was brought to life in 1992 with a single goal – to prevent sports betting from expanding beyond Nevada. Authorities claimed back then that the reason why it is not a good idea to expand sports betting is that it would bring illegal activities to life. One of those is money laundering. 

With PASPA, Nevada had a monopoly on the market. That was until the Murphy v. National Collegiate Athletic Association case came in. This is when the Supreme Court ruled that US states should have the right to regulate sports betting in whichever way they please. 

The first state that acted after PASPA was overturned was Delaware. By the end of the year, several other states made sports betting legal: 

  • Mississippi 
  • New Mexico 
  • New Jersey 
  • Rhode Island 

As stated earlier, over 25 states have now legalized sports betting in one way or another. 

Online Betting is Also on the Rise

Young people playing soccer on a pitch

Apart from legalizing land-based wagering, many states saw the opportunities that lie in online sports betting. As a result, they opened their doors to the best betting sites in USA. Thanks to online betting, residents were given the chance to wager at any time and place. 

One thing that is worth knowing is that the US makes a difference between online and mobile betting. Hence, some states have legalized online betting, but not mobile. With that being said, you can bet online if you’re staying in: 

  • Arizona
  • Colorado
  • Connecticut
  • Illinois 
  • Indiana 
  • Iowa
  • Louisiana
  • Maryland

Other states that legalized online and/or mobile betting include New York, Michigan, West Virginia, New Jersey, Pennsylvania, New Hampshire, Oregon, Tennessee, Virginia, and Wyoming. 

In many regions, online sports betting proved to be a massive hit. Take New Jersey as an example. Back in 2021, the state became the first one to cross $1 billion in total monthly sports betting handle (September). 

Between June 2018 and November 2022, the total sports betting handle in the states that legalized this activity exceeded $167 billion. New Jersey and Nevada were the leaders with $31.5 and $27.7 billion, respectively. As a result, the tax revenue of the states exceeded $2 billion. 

Casino Sites Do Not Have the Same Expansion Rate 

Boxers fighting in the ring

Even though sports betting is experiencing massive expansion, the case with online casinos is not the same. Since both of these activities are part of the general gambling industry, many would think that sports betting and casino gaming online go side by side. 

However, that’s not the case. Now, it is worth noting that many US states are making efforts to try and make online gaming legal. As of right now, only 6 states allow their residents to play online slots, table games, live dealer games, etc. These states are: 

  • West Virginia 
  • Delaware
  • Michigan 
  • New Jersey 
  • Connecticut
  • Pennsylvania

The Benefits of Legal Sports Betting in the US

There are over 10 states that are considering legalizing sports betting or have already started the process of legalizing it. Now, many think why would they consider legalizing a gambling activity? 

Well, many benefits come from them. For starters, they boost employment rates in the states. Not only that but the states themselves collect millions in taxes. They use the money to fund education and healthcare programs, as well as gambling addiction agencies. 

Research shows that many residents are willing to travel to nearby states so that they can bet on sports. Common logic states that it’s better for states to legalize betting and use the tax money for good purposes rather than giving it away.