In less time (eight years) than it took for the U.S. sports wagering industry to evolve in the last eighty years, the landscape of legal sports wagering in the United States has drastically changed since the Supreme Court issued its decision regarding PASPA in May 2018. At that point there was only one U.S. jurisdiction where legal sports wagering was permitted. Today there are forty-one jurisdictions where either an online-only platform or physical retail locations offer some type of wagering. The total amount of money wagered by American bettors on sports during 2025 reached more than $130 billion. This number would have seemed unbelievable prior to the court’s decision.

However, the legal sports wagering environment across the U.S. is by no means consistent. For example, while bettors in New Jersey are able to select among twelve different competing wagering applications, bettors in Texas and California are unable to place bets at all within their respective borders. Laws governing sports wagering vary greatly from one state to another with respect to such issues as: Which sports may be the subject of wagers; What types of organizations/individuals are permitted to operate in each jurisdiction; Whether wagering via mobile devices is permissible; How aggressive marketing efforts are permitted to be toward prospective consumers.

The National Snapshot: Where Things Stand in 2026

As of January 2026 the status of legalizing sports betting is broken down to:

• There are 38 states that have either passed laws allowing sports betting or are in the process of passing such laws.
• More than thirty states will offer mobile and/or online wagering on sports events.
• Several states currently allow retail only wagering on sports; you can only place wagers if you are located within one of those states and physically located at an approved facility.
• Twelve states do not allow sports betting in any way and there is little hope that they will pass legislation anytime soon.
• The three largest untapped markets in the U.S. include California, Texas, and Florida.

New Jersey, Pennsylvania, New York, Colorado and Ohio are among the most competitive state-based markets where multiple double-digit gaming companies are actively competing to gain market share. This aggressive competition results in significantly more attractive new customer promotions and continued promotional offers for bettors. The newer markets in North Carolina (launched March 2024), and Missouri (passed November 2024), are quickly developing into high-stakes battlegrounds for all of the large gaming companies.

How Sports Betting Legalization Works

When the U.S. Supreme Court repealed PASPA in 2018 it did not make sports betting legal across the United States. The repeal of PASPA only eliminated the federal ban prohibiting states from creating their own sports betting laws. As such, all states had to go through either their own legislative processes or ballot initiatives, and subsequently develop their own regulatory frameworks.

As an example, New Hampshire and Rhode Island chose to create a state-monopoly model for regulating sports betting by allowing only one licensed operator. In contrast, states such as New Jersey and Colorado decided to allow multiple operators to participate in the regulated market place. There were also many other variations among states when considering:

• Mandatory minimum age (most states require a player to be 21 years old, but some states require a player to be 18)
• Tax rates on Gross Gaming Revenue (range varies from 6.75 percent in Nevada to 51 percent in New York)
• If collegiate sports events may be wagered upon
• If in-play wagers may be placed during live sporting events
• If prop-bets may be placed on the performance of individual players
• Rules governing advertising and Responsible Gaming practices

The Tax Rate Debate has been growing in prominence. For example, although New York’s tax rate of 51 percent on Gross Gaming Revenue has led to public comments from operators expressing concerns about their future ability to operate profitably within the state, due to the state’s large population base it will likely generate a significant amount of handle. Similarly, Illinois’ decision to adopt a graduated tax system in 2024 was met with criticism by operators stating they would reduce promotional activities if this tax structure were adopted.

The Biggest Legal Markets: A Closer Look

New Jersey

In addition to being the first U.S. State to challenge PASPA at the Supreme Court level, New Jersey is also the first to establish a regulated sports wagering industry. In June 2018, it opened up its regulated sports wagering industry and today hosts over 15 fully-licensed operators. This large pool of operators creates an extremely competitive environment which directly benefits consumers through numerous daily promotions offered by each operator. Currently, no other state offers the same amount of options or quality of promotions as New Jersey. Additionally, bet365, known globally for their in-play wagering products, utilizes New Jersey as its primary U.S. jurisdiction.

New York

After launching mobile sports wagering in January 2022, New York instantly became the largest sports wagering market in terms of handle. The significant volume generated from the dense population surrounding New York City, drives the massive revenue. However, due to having the highest tax rates (51%) in any currently operating U.S. regulated sports wagering jurisdictions, the competition for promotions will likely remain limited. FanDuel and DraftKings continue to operate in a leading capacity within the NY Market.

Pennsylvania

The Commonwealth of Pennsylvania was part of the initial wave of States to legalize post-PASPA and has created one of the largest and longest standing regulated sports wagering industries in the United States. The tax rates on the State are high (36%), however several operators continue to provide services to the State. bet365 has a large presence in PA and is unique among other States that allow for both online casino gaming and regulated sports wagering.

Colorado

Colorados’ regulatory environment has been one of the strongest (if not the strongest) in the nation. Colorados’ 10 percent tax rate is reasonable compared to other jurisdictions, there are numerous (and growing) numbers of regulated operators within the State, and while Colorado’s regulators have attempted to follow federal guidelines regarding betting options available to consumers; they have also followed a very liberal approach when it comes to what types of bets can be placed on college sports, individual players (known as player props), etc., as well as allowing in-play wagering. Given that both the Denver Broncos and Denver Nuggets teams enjoy significant fan bases, Colorados’ sports betting marketplace is particularly robust for both football and basketball.

Ohio

On Jan. 1, 2023 – a purposefully symbolic date – Ohio officially launched its sports-betting market with one of the most successful rollouts of any large-scale sports betting market recently. As home to five major professional sports franchises (the Cleveland Browns, Cavaliers, Indians, Columbus Blue Jackets and Cincinnati Bengals) – as well as an extremely loyal group of fans – Ohio has quickly moved into the Top-10 U.S. markets based on overall handle. Fanatics Sportsbook ranked Ohio among its first handful of states where it would offer its integrated loyalty program-based sports betting product.

North Carolina

North Carolinas’ official launch in mid-March 2024 was likely one of the most highly anticipated launches in years. North Carolina’s population exceeds 10 million people, does not involve any tribal-gaming related issues – therefore, at “go” time, North Carolina became a full-service commercial mobile sports betting marketplace. At exactly noon on the same day that 12 operators began accepting bets, each operator aggressively promoted their offerings – which sparked an unprecedented amount of promotional activity throughout North Carolina. In conjunction with its initial promotion efforts – ESPN Bet heavily promoted its launch as part of its own promotional activities – and offered aggressive offers to new users that were directly tied to its sports-media branding.

Top Sports Betting Apps: 2026 Availability by State

Feature	FanDuel	DraftKings	BetMGM	Caesars	bet365
States Live	26+	26+	24+	22+	10+
Welcome Offer Type	Bet & Get bonus bets	Deposit match or bonus bets	First bet bonus bets	Reward Credits offer	Bet $1 Get $365
Live Betting	Yes	Yes	Yes	Yes	Yes (market-leading)
Same-Game Parlay	Yes	Yes	Yes	Yes	Yes
Loyalty Program	FanDuel Rewards	Dynasty Rewards	MGM Rewards	Caesars Rewards	None
Cash Out	Yes	Yes	Yes	Yes	Yes

Understanding Sports Betting Welcome Offers

When you make an initial deposit into your account, your money is locked until the playthrough requirements have been met. The deposit match will typically come in the form of bonus money that will be added to your account. Bonus money cannot be withdrawn until you meet the required amount of wagers; some sites require a 1x-5x wagering requirement. While these can provide significant value for frequent bettors, less value exists for infrequent or casual bettors due to potential difficulties meeting the wagering requirements.

A more general approach includes “new-user” promotions. New-user promotions vary by site. In addition to the risk-free bet, new-user bonuses may include free bets, matching deposits or other types of rewards. For example, instead of receiving a risk-free bet of a maximum amount, a customer could receive two free bets (e.g., one $25 and one $50). Additionally, when a customer receives a “deposit match,” their initial deposit will be matched dollar-for-dollar up to a specific amount. The customer would then receive this deposited amount back in the form of bonus money, along with additional requirements to use this money.

Another example of a promotion offered through mobile apps are “First Bet Refund.” When you initially register and fund an account via mobile app, you will receive a refund for your loss on your first bet, in the event that it loses.

Bet $1, Get $X Offers

Bet365 has made this model very popular in the U.S.: Deposit an amount that works for you, place a minimum bet of $1 and you’ll get a predetermined “bonus” back as free money – usually $200-$365 in the form of bonus bets. It’s a clear value proposition but the “bonus” bets are usually split up and have an expiration date on them – 7-30 days depending upon when they were issued.

What To Watch Out For

• Odds Minimum Requirements: Most will require your “qualifying” bet to be placed at least at (-) 200 odds – some may even require (+) 100 or better.
• Expiration Date On Bonus Bets: Your bonus bets will also expire anywhere from 7-30 days after they’ve been awarded to you.
• Withdrawal Requirements: If you win using the bonus bets, most times those winnings can be withdrawn right away – however, if you lose your wager on a bonus bet you won’t be able to withdraw the lost portion of the bonus.
• Geolocation: Regardless of what state you’re actually in at the time of placing your bet – you have to be located in one of our legal states to make that bet.

States Where Sports Betting Remains Illegal

Although many states have legalized sports betting at an increasing rate; however there are numerous jurisdictions which have made little to no progress toward legalizing sports wagering. The reasons for this lack of movement are as varied as they are state-specific. For example, some tribes oppose legalizing sports betting (tribal gaming) while other states are held back by conservative legislatures. In both California and Texas; stakeholders including tribal entities, commercial casinos, horse racing interests and professional sports leagues create conflicting interests that hinder the development of legislation or ballot initiatives.

State	Primary Barrier	Outlook
California	Failed ballot props in 2022; tribal vs. commercial operator conflict	Unlikely before 2028
Texas	Legislative opposition; requires constitutional amendment	2025 session failed; 2027 possible
Florida	Ongoing federal legal dispute over Seminole Tribe compact	Uncertain; Hard Rock Bet operating in legal gray area
Georgia	Repeated legislative failures; constitutional amendment required	2026 ballot initiative possible
Minnesota	Tribal opposition; dispute over commercial operator inclusion	No deal in sight
Oklahoma	Tribal gaming compacts and opposition from tribal nations	Minimal movement expected
Hawaii	All gambling prohibited; deep cultural opposition	No change expected
Utah	State constitution prohibits gambling; deeply conservative	No change expected

California and Texas: The Markets That Could Change Everything

US sports betting’s long-term prospects cannot be fully assessed without taking into account the combined populations of Texas and California. Between them, these two states total a population of approximately 65 million (or nearly 20% of the U.S.) with neither having legalized sports betting as of early 2026.

California

In mid-2022, Californians had the opportunity to vote on two different ballot initiatives related to legalized sports betting. One was sponsored by the state’s tribal gaming interests and would have permitted legal wagering on sporting events exclusively within tribal-owned physical facilities and at self-service kiosk located therein. The other was supported by large-scale commercial entities such as FanDuel, DraftKings and others that provide online sports wagering platforms. This second measure also included provisions permitting wagerers to use mobile devices to place wagers anywhere in the state where mobile data service was available. Voters ultimately voted down both proposals. A record-breaking amount of money was spent ($610 Million) on advertising efforts promoting the passage of each proposal.

A fundamental obstacle blocking the implementation of a viable sports wagering model in California are conflicting positions taken by the state’s powerful tribe and commercial wagering companies. Tribal representatives support only a “retail-only” model for sports wagering using their own casino-based kiosks. Commercial wagering organizations demand the ability to allow customers to wager using mobile phones. There will likely be no viable path to implementing a legalized sports wagering system in California until there is agreement between the tribes and commercial wagering companies regarding what constitutes an acceptable model. As of this writing, few industry experts believe there will be a viable California market before 2028.

Texas

Sports wagering in Texas will require a Constitutional Amendment to permit its legality. Therefore, in addition to passing legislation supporting sports wagering, Texas voters will have to subsequently approve of the concept at the polls. Although several bills were passed during the 2023 and 2025 legislative sessions in Texas, none successfully made it out of committee. There are two primary groups opposing sports wagering in Texas: Conservative politicians that oppose further expansion of gaming opportunities due to concerns about societal harm; Horse Racing Industry officials who fear competition for existing wagering activities.

As it stands now, there is little doubt that the financial benefit to taxpayers and/or local governments in terms of generated tax revenue associated with a legalized sports wagering system far outweighs the costs associated with establishing and operating the same. Many major professional sports teams based in Texas, including the Dallas Cowboys, Houston Texans, Dallas Mavericks, and Houston Astros, have been actively lobbying for the establishment of a legalized sports wagering system. At best, the 2027 legislative session provides a potential new opportunity for consideration of sports wagering legislation.

How to Choose the Right Sports Betting App for You

Many different gambling apps will be offered in virtually every state. Your decision about which app to use, therefore, will depend upon what makes the most sense to you regarding how you like to bet.

There are really just four key areas to consider when determining which bookmaker (betting app) is right for you. Those are:

1. Sports coverage. While almost all major U.S. sports and most major international sports will be covered by nearly all of the top rated gambling apps, they may differ in terms of the amount of detail provided for those sports. For example, if you primarily focus on smaller markets (e.g., international soccer, tennis, etc.), bet365 and DraftKings provide better odds than their competition in these niches.
2. Live betting: bet365 has established itself as the gold standard for live betting worldwide. FanDuel and DraftKings are second in this area; while Caesars and BetMGM have made significant improvements, their applications still do not provide as much depth or speed relative to FanDuel/DraftKings for live wagering.
3. Promotional offers to existing users: Welcome offers are typically limited to first-time depositors. Ongoing promotions (profit boosts, parlay insurance, loyalty points, reload bonus, etc.) should be given higher consideration since it is likely that you will continue using your account over an extended period of time. FanDuel has historically ranked #1 in this category.
4. App design: Each of the primary gaming apps are well-organized, however DraftKings is generally considered the most visually appealing overall. bet365’s app is also among the strongest of the group based upon its ability to support high-quality live betting experiences.
5. Speed of withdrawals: Both FanDuel and DraftKings allow for same day withdrawal through PayPal or online banking in most states.

While maintaining multiple active accounts across several providers is a relatively common occurrence for many serious gamblers (this is commonly referred to as “line shopping”), maintaining multiple accounts allows them to shop lines and take advantage of the highest possible payouts on each individual contest. This is particularly important because the difference between a +10% (or -10%) and a +11% (or -11%) payout can add up dramatically over the course of a long season.

What to Watch in 2026 and Beyond

A slowdown occurred in the rapid number of new State legalizations since 2019-2022’s boom period. There are some developments to watch:

• GA – A ballot initiative is being discussed in 2026 and for the first time there appears to be real movement due to the support of an NFL and/or NBA franchise.
• TX – The 2027 legislative session is likely the best opportunity for Texas to legalize sports betting. It would require the Cowboys’ ownership group and commercial entities to work out an agreement with Texas lawmakers for it to happen.
• MO – Legalized by ballot in November 2024 and hasn’t been rolled out yet; the roll-out of mobile providers will create significant opportunities in the market beginning in 2026.
• IL tax structure – The 2024 graduated tax rate increase has caused operator backlash and may lead to litigation against IL regarding taxes. This could reshape the competitive landscape of the Illinois market.
• Federal Legislation – While no progress toward federal regulations has been made, there are several members of Congress who want to see a federal regulatory framework developed. Such a framework would provide baseline protection and minimum requirements for all states.

While the U.S. Sports Betting Market is growing fast, the major players are changing. As opposed to the massive promotional arms races we saw during the 2019-2022 period (where operators were spending billions of dollars to acquire new customers at a loss), the current focus is on profitability and consolidation. In almost every market, FanDuel and DraftKings have become separated from the competition. The remaining operators competing in 2026 are doing so based on their product offerings, depth of market and customer loyalty programs as opposed to simply how much they are willing to spend promoting themselves.

As a result of this maturity, while bettors will still receive great offers, the days of receiving $1,000 Risk Free Bets are behind us. That said, what remains is a competitive, regulated industry across many of the States that have decided to allow sports betting – with potentially the most intriguing areas developing in California, TX and GA.

Responsible Gambling

Sports betting should always be approached as entertainment, not as a source of income. If you or someone you know is struggling with gambling, free and confidential help is available 24/7 through the National Problem Gambling Helpline at 1-800-522-4700. You must be 21+ (18+ in some states) and physically located in a legal state to place real-money bets. Always check your state’s current regulations before depositing.