Sports betting continues rapid expansion across the United States. Today, 38 states plus the District of Columbia offer legal sports wagering, while 11 states maintain betting prohibitions. The betting landscape varies significantly by region – 30 states allow online and mobile platforms, making sports betting easily accessible through smartphones and websites.
New Jersey and New York stand among industry leaders, generating billions in betting handle and tax revenue. Meanwhile, states like Utah and Hawaii maintain complete bans on sports wagering. This creates a complex regulatory environment that impacts state economies, tax collection, and betting accessibility for millions of Americans.
Whether you’re interested in placing bets or following industry developments, understanding the current state-by-state differences proves essential. Our guide examines both legal and banned states, providing clear insights into where and how Americans can participate in sports betting in 2025.
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Current US Sports Betting Map Overview
Legal sports betting spans 38 states plus Washington, D.C.. The betting landscape divides into distinct categories based on access and regulations.
Legal States vs Banned States in 2025
Thirty states offer online sports betting platforms, while 11 states maintain complete bans. Alabama, Alaska, California, Georgia, Hawaii, Idaho, Minnesota, Oklahoma, South Carolina, Texas, and Utah continue to prohibit sports wagering. Missouri sports betting apps prepare for summer 2025 launch.
Types of Legal Betting: Online vs Retail
Sports betting access splits between online and retail options. Most legal states (30) allow both online and mobile betting platforms, giving bettors full access through smartphones and websites.
Eight states maintain retail-only betting, including Mississippi, Montana, and Nebraska. Each state sets unique rules – Mississippi limits mobile betting to casino property, while Montana restricts betting apps to Sports Bet Montana locations.
Tennessee and Vermont take a different approach, offering online-only betting. Other states require bettors to visit physical sportsbooks or casinos. These varied approaches show how states balance betting access with oversight.
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Legal States Deep Dive
New York leads all sports betting markets, posting USD 22.50 billion in handle during 2024. The Empire State sportsbooks generated USD 2.11 billion in revenue while contributing over USD 1.00 billion to state tax coffers.
Top Performing Sports Betting States
The battle for second place continues between Illinois and New Jersey. Illinois sportsbooks handled USD 13.90 billion and earned USD 1.20 billion in revenue. New Jersey books took USD 12.80 billion in bets, producing USD 1.15 billion in revenue. Ohio and Pennsylvania complete the top five markets, each surpassing Nevada’s handle for the first time.
State Revenue Generation
Legal sports betting delivered USD 2.90 billion in state tax revenue during 2024. The federal government collected USD 375.00 million through excise tax. Sportsbooks achieved a record 9.5% hold rate across all markets. New York’s aggressive 51% tax rate accounts for more than one-third of nationwide sports betting tax revenue.
Popular Betting Platforms by State
FanDuel maintains market leadership with 40% share, collecting USD 5.78 billion in revenue across 23 states. DraftKings operates in 26 markets, generating USD 4.67 billion in revenue. Together these sportsbooks control over 65% of U.S. sports betting. BetMGM, Caesars Sportsbook, and bet365 round out the major operators.
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Understanding Banned States
Eleven states currently prohibit sports betting. These states face regulatory challenges and social concerns blocking legalization efforts.
Why These States Ban Sports Betting
Multiple factors keep sports betting illegal in these jurisdictions. Several states require voter approval through constitutional amendments to expand gambling. Religious groups, particularly Christian Conservatives, maintain strong opposition. Many state agencies lack resources to oversee international betting operators. California voters recently rejected mobile betting, with less than 20% supporting the 2022 ballot measure.
Economic Impact of Betting Prohibition
States banning sports betting miss substantial revenue opportunities. Legal sports wagering could deliver USD 8.00 billion in state taxes nationwide. The industry currently supports 216,000 jobs across legal markets.
However, banned states point to financial risks for residents. Legal betting states report 28% higher bankruptcy rates. Credit scores show measurable decline, with 8% more debt moving to collections.
Residents of banned states often place bets across state lines or through offshore sites. These unauthorized operators skip state taxes while breaking federal and state laws.
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State-by-State Comparison
Sports betting tax rates show significant variation across legal markets. Nevada and Iowa maintain 6.75% rates, while New Hampshire, New York, and Rhode Island charge 51%. Kentucky, Louisiana, Massachusetts, New Jersey, and New York set higher rates for online handle versus retail bets.
Tax Revenue Differences
Legal sports betting delivers strong tax returns for state coffers. Total collections hit USD 6.50 billion since June 2018. New York tops revenue charts at USD 2.30 billion, with Pennsylvania following at USD 500.00 million. New Jersey’s more modest 14.25% rate still generated USD 412.00 million.
Employment Statistics
The sports betting boom creates jobs across multiple sectors. Industry payrolls reach USD 11.00 billion, covering wages, benefits and other compensation. Nationwide employment touches 216,671 positions. Jobs range from odds makers and risk managers to marketing teams and tech developers.
Cross-Border Betting Impact
States without legal betting watch money flow across borders. Missouri casinos felt the pinch after Illinois launched sports betting, losing both gaming revenue and potential sports handle. This border effect puts pressure on holdout states, especially as neighbors demonstrate successful programs. With USD 41.20 billion in total economic output, legal sports betting makes a compelling case for expansion.
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Comparison Table
| Category | Legal Sports Betting States | Banned States |
|---|---|---|
| State Count | 38 states + DC | 11 states |
| Betting Access | • 30 states: online/mobile betting • 8 states: retail-only betting • Mixed models available | No legal options |
| Key Markets | • New York • Illinois • New Jersey • Ohio • Pennsylvania | • California • Texas • Utah • Hawaii • Georgia |
| Tax Structure | • Low: 6.75% (Nevada, Iowa) • High: 51% (NY, NH, RI) | None |
| 2024 Handle | • New York: $22.50B • Illinois: $13.90B • New Jersey: $12.80B | Zero legal handle |
| Tax Collection | • Total since 2018: $6.50B • NY: $2.30B • PA: $500M • NJ: $412M | Revenue flows to other states |
| Jobs Created | • 216,671 positions nationwide • $11B worker earnings | No industry jobs |
| Leading Apps | • FanDuel: 40% market share • DraftKings • BetMGM • Caesars Sportsbook • bet365 | Offshore sites only |
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Conclusion
Legal sports betting delivers clear economic benefits across participating states. New York leads with USD 22.50 billion handle and USD 2.30 billion tax revenue . States maintaining bans watch these dollars flow to neighboring jurisdictions.
The numbers tell a compelling story. Legal betting markets support 216,000 jobs while generating USD 41.20 billion in economic activity . Though some states cite social concerns and regulatory challenges, successful programs in neighboring states demonstrate effective oversight models.
FanDuel and DraftKings command 65% of U.S. sports betting . State tax rates range from 6.75% to 51%, showing various approaches to balance operator profits with public revenue . These established markets provide blueprints for states considering legalization.
The sports betting map continues shifting as more states examine their options. Economic data and cross-border impacts influence these discussions, while successful oversight programs address regulatory concerns.
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