Is Online Betting Legal in the US? State-by-State Guide

The short answer is yes, online betting is legal in the United States—but only in certain states and under specific conditions. Following a landmark 2018 Supreme Court decision, individual states gained the authority to legalize and regulate online sports betting, creating a complex patchwork of regulations that varies significantly from state to state. As of early 2024, approximately 30 states have legalized some form of sports betting, with many offering mobile or online platforms, while others maintain strict prohibitions.

For UK readers curious about American betting laws—whether you’re planning travel to the US, managing international betting accounts, or simply researching the landscape—this comprehensive guide breaks down everything you need to know about where online betting stands legally across the United States.

The 2018 Supreme Court Decision That Changed Everything

Before May 2018, the Professional and Amateur Sports Protection Act (PASPA) effectively prohibited sports betting nationwide, with only Nevada grandfathered in as a legal exception. This 26-year-old law made it illegal for states to authorize sports betting operations.

The pivotal case was Murphy v. NCAA, in which the Supreme Court ruled 6-3 that PASPA was unconstitutional. The Court determined that the law improperly commandeered state legislatures, violating the anti-commandeering doctrine under the Tenth Amendment.

This decision didn’t legalize sports betting nationally—it simply returned the power to decide to individual states. Within 18 months of the ruling, eight states had launched legal sports betting markets, and the industry has grown exponentially since. According to the American Gaming Association, Americans wagered over $120 billion on sports legally in 2023 alone.

Federal Framework: What Remains Illegal at the Federal Level

While states now regulate sports betting within their borders, certain forms of betting remain prohibited at the federal level:

• The Wire Act (1961): Prohibits using wire communications facilities for betting across state lines
• Unlawful Internet Gambling Enforcement Act (UIA): Bars gambling businesses from knowingly accepting payments related to unlawful internet gambling
• Illegal Gambling Business Act: Makes it illegal to operate an illegal gambling business

These federal laws primarily target operators rather than individual bettors. The legal consensus holds that placing a bet with an offshore or illegal operator is not typically prosecuted against individuals, though it carries risks including loss of funds and no legal recourse.

States Where Online Sports Betting Is Legal and Operational

The following states have legalized and launched online sports betting:

Full Mobile Sports Betting (Online + Mobile Apps)

What sets these states apart: They allow residents to place bets via dedicated mobile apps from anywhere within state boundaries (with geolocation verification required).

States With Retail-Only or Limited Sports Betting

Some states have legalized sports betting but limited it to physical casino locations:

• Delaware: Legalized 2018, retail-only at casinos
• Mississippi: Legalized 2018, retail-only at casinos
• Montana: Legalized 2020, retail-only via lottery terminals
• New Mexico: Retail-only at tribal casinos (no state legislation; tribal compacts)
• North Carolina: Legalized 2023, retail-only at tribal casinos (mobile launching soon)

These states offer legal betting but require in-person wagers at approved locations.

States Where Sports Betting Remains Illegal

The following states have not legalized sports betting as of early 2024:

• California: Multiple legalization attempts have failed at the ballot
• Texas: No legislative action; unlikely in near term
• Florida: Complex legal situation with tribal disputes; currently in limbo
• Utah: Explicit constitutional prohibition
• Hawaii: No legislative movement
• Alaska: No legislative movement
• South Carolina: No legislative action

Online Casinos and Poker: A Different Landscape

Sports betting isn’t the only consideration. Online casinos and poker rooms operate under different legal frameworks and remain prohibited in most states:

• Legal online casinos: Only available in six states—New Jersey, Pennsylvania, Michigan, Connecticut, Delaware, and West Virginia (though Delaware and West Virginia have limited offerings)
• Legal online poker: Available in Nevada, New Jersey, Pennsylvania, Delaware, and Michigan
• Social casinos (free-to-play with no real money): Legal in all 50 states as they’re not considered gambling

This distinction matters because some operators attempt to offer “casino-style games” under sports betting licenses, creating a gray area.

What Foreign Nationals and UK Visitors Need to Know

If you’re a UK citizen visiting or living in the US, the legal framework applies to you similarly:

1. You can legally bet in states where sports betting is legal, using licensed operators
2. Geolocation requirements: Licensed apps will verify you’re physically located within a legal state
3. You cannot legally bet from states where betting is prohibited, even if you’re a UK resident
4. Offshore operators: Using unlicensed offshore books carries significant risk—no consumer protection, potential legal exposure, and difficulty withdrawing funds

Practical advice: Download licensed apps (DraftKings, FanDuel, BetMGM, Caesars) before arriving, ensure your phone location services are accurate, and understand your state-specific obligations.

The Tax Implications Every Bettor Should Know

Whether you’re a US resident or foreign national, winning money from sports betting has tax implications:

• US residents: Must report all gambling winnings as income; losses are deductible only up to winnings
• Non-residents: Generally not subject to US tax on casual gambling winnings unless a tax treaty specifies otherwise
• Withholding: Winners may face 30% withholding on winnings if the payer doesn’t have valid Form W-8BEN on file

This area is complex, and consulting a tax professional is advisable for significant winnings.

Conclusion

The legal landscape of online betting in the US is states’ rights in action—fragmented, evolving, and complex. While roughly 30 states now offer some form of legal sports betting, each maintains its own regulatory framework, tax provisions, and licensed operators. The key takeaways are:

• Online sports betting is legal in approximately 20 states with full mobile platforms
• Each state sets its own rules, so legal status depends entirely on your location
• Federal law still prohibits certain activities, particularly operating illegal betting operations across state lines
• Offshore operators remain risky and offer no consumer protection
• Tax obligations apply to winnings in most circumstances

For UK readers planning to bet while in the US: stick to well-established licensed operators, verify you’re in a legal state, and understand that you’re subject to the laws of whichever state you’re physically in when placing your wager.

Frequently Asked Questions

Q: Can I use my UK betting account while in the United States?

No, most UK licensed operators do not accept US customers due to US federal law restrictions. Attempting to access your UK account from the US would likely violate the operator’s terms of service and could result in account suspension. Additionally, UK operators are not licensed to accept bets from US locations where betting is prohibited.

Q: What happens if I bet in a state where it’s illegal?

While enforcement against individual bettors is rare, you face significant risks: you have no legal recourse if the operator refuses to pay winnings, your account can be closed and funds confiscated, and you may face criminal charges in extreme cases. The legal risk falls primarily on operators, but bettors using illegal markets are participating in unlawful activity.

Q: Are winnings from US sports betting taxable in the UK?

UK tax on gambling winnings is generally not applicable. Gambling winnings are not considered taxable income in the UK—whether from UK or US sources. However, you must declare gambling winnings on a Self Assessment tax return if you have a total income exceeding the personal allowance that includes gambling profits.HMRC guidance confirms that gambling profits are not subject to Income Tax unless the activity constitutes a trade.

Q: How do I verify a sports betting operator is legal in the US?

Look for these verification markers: The operator must be licensed by the state gaming authority (visible on their website), display “Responsible Gaming” seals, provide geolocation verification software, and offer deposits via legitimate US banks. Check your state’s gaming commission website for a list of licensed operators—every legal state maintains a public registry.

Q: Can I bet on college sports in legal states?

It depends on the state. Some states prohibit betting on in-state college teams or all college sports entirely, while others allow full college betting. For example, New Jersey allows betting on all college games, but states like Virginia prohibit betting on Virginia-based college teams. Always check your state’s specific regulations before placing college wagers.

Q: What is the legal minimum age to bet online in the US?

The minimum age is 21 in virtually all legal US betting states. This is a strict requirement enforced through identity verification at account creation and geolocation confirmation before every bet. Unlike some countries where the legal gambling age is 18, US law uniformly mandates 21 for sports betting and casino games.