States With Online Sports Betting

Heading into the new year, at least a dozen states are expected to take up sports betting legislation — some with existing retail betting with eyes on online expansion, and others with no sports gambling at all yet. Here are seven states to watch in 2021. Online sports betting is authorized under the law, but it will require in-person registration at a qualified casino venue until January 1, 2021. Both land-based and state-wide online sports betting apps were launched on August 15, 2019.

Sports betting in the United States has changed dramatically since May of 2018 when PASPA was repealed. In fact, the changes are taking place so quickly, it's actually a bit challenging to keep up. This is not a bad thing though - it means that the sports wagering industry is expanding to fill the void that US bettors have felt for the last several decades, and state lawmakers are on board for the most part with pioneering the launch of the domestic US sports betting industry.

Following PASPA's nullification, state-regulated sports betting has come onto the scene to provide a second avenue for betting along with the handful of trusted offshore sportsbooks that have legally and reliably provided their betting services to American sports fans for decades. To assist in helping everyone stay in the know regarding which states allow or prohibit these different forms of sportsbook gambling, we've broken the information down in a few different ways.

Where Is Sports Betting Considered Legal In The United States?

Before May 2018, only one state had full-service state-regulated sports betting options, that state being Nevada. At this moment in time, the number of states offering legal domestic sports betting is 19. In addition, US players are permitted to access offshore sports betting sites in most states except in Connecticut and Washington, where lawmakers have established state laws outlawing access to all forms of online gambling. Residents in every other state can legally access offshore sportsbooks without violating any type of state or federal laws.

List Of States That Have Already Legalized State Regulated Sports Betting

What states offer legal sports betting locally? Currently, more than 20 US states have legalized state-regulated sports betting options, though you can reduce that number by one if you consider the tribal loophole used by New Mexico Indian nations to not qualify as specific state approval.

A significant number of states have passed legislation to authorize sports gambling in their state but have yet to launch any sportsbooks while additional states have legislation pending.

Here is a breakdown of the states that have already passed legislation allowing domestic sports betting entertainment as well as states that have pending active legislation in the works. States with ** indicate that they have legalized state-regulated sports betting but have not yet launched any brick and mortar or online betting options.

  • Arkansas
  • Colorado
  • Delaware
  • Illinois
  • Indiana
  • Iowa
  • Louisiana**
  • Maryland**
  • Michigan
  • Mississippi
  • Montana
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina**
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Dakota**
  • Tennessee
  • Virginia**
  • West Virginia
  • Washington**
  • Washington D.C.

List Of U.S. States That Don't Criminalize Offshore Betting

Even if you don't live in one of the above states which have passed legislation to legalize sports betting, there are still plenty of options to bet on sports while remaining within the confines of the U.S. law. The most important thing to understand on the legal side of things is that there are only 2 states which specifically make gambling via an offshore site illegal. These include Washington and Connecticut. So you won't be breaking any laws if you reside in any other state and choose to bet with an offshore sportsbook.

U.S. States
AlabamaAlaskaArizonaArkansas
CaliforniaColoradoConnecticutDelaware
FloridaGeorgiaHawaiiIdaho
IllinoisIndianaIowaKansas
KentuckyLouisianaMaineMaryland
MassachusettsMichiganMinnesotaMississippi
MissouriMontanaNebraskaNevada
New HampshireNew JerseyNew MexicoNew York
North CarolinaNorth DakotaOhioOklahoma
OregonPennsylvaniaRhode IslandSouth Carolina
South DakotaTennesseeTexasUtah
VermontVirginiaWashingtonWashington D.C.
West VirginiaWisconsin Wyoming

States Where Online Sports Betting Is Considered Illegal

A few states have taken an extra measure to strengthen their enforcement of anti-gambling laws to keep their residents from engaging in any form of gambling on the Internet, including online sports betting:

  • Washington
  • Connecticut

These two states are the only ones that have taken this approach as of early 2021. They each have specific state laws that outlaw all forms of gambling on the Internet, regardless of the source. Their prohibition of online sports wagering does not mean that they won't legalize state-regulated brick-and-mortar sportsbooks, as Connecticut has some betting legislation on the table right now and Washington just passed a sports betting bill of its own.

There are also a few states that have enacted laws specifically to prohibit state-regulated sports wagering, including:

  • Utah
  • Vermont
  • Alaska
  • Hawaii

We've seen that this can change as well, as Hawaii already has a pending sports gambling bill in its legislature.

Understanding States’ Rights

Us States With Online Sports Betting

The United States Department of Justice issued a Formal Opinion in 2011 clarifying that the Wire Act only pertained to US-based online sports gambling businesses. This freed up states to issue legislation that would legalize online casinos and poker.

However, the application of this law changed in 2018 with the repeal of PASPA and again in 2019 with another clarification of the law's reach post-PASPA. Now the Act simply prohibits any interstate gambling transmissions for all state-regulated gambling, meaning that state gambling businesses are not permitted to accept wagers across state lines. This interpretation is being challenged in court, so the application of the Wire Act could change yet again.

Until its repeal in May of 2018, PASPA was a federal ban that superseded states’ rights. There was an argument against the ban stating that it violated states’ constitutional rights. PASPA prohibited states from authorizing or licensing sports betting enterprises themselves. After being sued by the major sports leagues in the US, NJ decided to do something about PASPA.

New Jersey was victorious in their historic Supreme Court case where they are argued that PASPA violates their rights as they tried to authorize sports betting in 2014. SCOTUS ruled that PASPA was indeed unconstitutional and rendered the law null and void and has therefore placed the authority to regulate sports wagering into the hands of the individual states.

Make Your Voice Heard

You can help with the ongoing US sports betting legal disputes by contacting your state representatives and encouraging them to vote on matters you support. Contact your state representatives and tell them to support sports betting legislation. If you visit our state bill tracker page - you will see a map with all the states. If you click on that map you will see a list of all pending bills for any given state. If a state is not 'clickable', you will know there are no sports betting bills pending for that state.

Understanding The Legal Gambling Age Of Each State

One of the most stringent protocols for any gambling sector is age verification. States have gambling age requirements to prevent minors from gaining access to both brick-and-mortar and online gambling platforms. Most states have a minimum gambling age somewhere between 18 and 21. However, most state-regulated sports betting platforms that we've seen launched require participants to be at least 21 years old, but there are a few exceptions. Be sure to check with your state’s gambling laws before participating in gambling to ensure you are within your legal limits.

What The Future Holds For Legal Online Sports Betting In America

This depends on whether the 2019 DOJ opinion on the Wire Act will be challenged in court (though it has received a temporary injunction on its new 'interpretation'). This new opinion flipped the domestic market on its head as it placed many restrictions on operations, forcing providers to be 100% intrastate-supported and compliant by mid-2019. However, New Hampshire and other states are attempting to challenge this opinion in court, and so far things are looking good.

Sports Gambling - By The Numbers

Be the legal situation as it may, sports betting still happens. American bettors are flocking to regulated offshore sportsbooks or illegal online and offline bookies to place their wagers. Sports gambling is a billion-dollar industry.

To put things in perspective, check out this information provided by the American Gaming Association of sports betting statistics from Super Bowl LIV (2020).

  • 26 million—Number of American adults to bet on SB54
  • 5 million—Bets placed online/offshore
  • $6.8 billion—Total Super Bowl betting handle
  • $154.7 million—Legal bets placed in Nevada
  • $6.65 billion—Gray-market bets placed everywhere else
  • 97.7%—Percentage of all bets placed through non-US-licensed means
  • 25%—Increase in total Super Bowl bets from the previous year

The AGA is also estimating that a total of over $40 billion will be wagered on MLB games during the next season. Imagine if this type of revenue was being regulated. Since the market already exists, why not put regulations on it to make it work towards our mutual benefit?

A poll conducted before the repeal of PASPA by the Morning Consult asked NFL fans their opinions on sports betting legislation. Nearly three times as many NFL fans believed the federal government should lift the ban on sports betting. The majority also believed that individual states should have the power to decide if they want sports betting, not the federal government. Americans want to bet on sports, and they've made it clear.

To learn more about state gambling revenue, see our guide to sportsbook revenue by state, where we go into detail about each state's services and the money the local gambling industry is generating.

Voice Your Opinion

Sports Betting Market Leaders By State

by Matias Dorta / November 12th, 2020

Introduction

U.S. online sports betting is akin to a digital gold rush. Each new state that legalizes online sports betting becomes a new frontier for the companies and operators competing for the U.S. market. In this blog, we will cover the states that have legalized online sports betting as of September 2020 and break down the current state of each market.

States With Online Sports Betting

This blog will be updated monthly as new data becomes available (feel free to bookmark).

Sports Betting Market Leaders By State

The information below is based on the most recent data as of October 31, 2020, representing the various states that have regulated online sports betting markets. Market Leader refers to the leader for online sports betting. This is not a recommendation to buy or sell securities.

New Jersey

October 2020 Total Handle: $803 million

Online Percentage: 93%

Market Leader: FanDuel/Pointsbet

The Garden State has become the success story in U.S. online sports betting. New Jersey, which launched its first legal online sportsbook in the summer of 2018, is now the U.S. leader in online sports betting. The state set a record for single state monthly sports betting handle in the U.S. in August with a total handle of $667.9 million, and then broke its own record in September with a $748.6 million handle, and again in October passing $800M.

The state currently has over 10 live online sportsbooks, including DraftKings, FanDuel, BetMGM, William Hill, bet365 and more.

The market leader in New Jersey is FanDuel/PointsBet. FanDuel and PointsBet are both partnered with license holder Meadowlands, therefore, their revenue is reported together. The tandem recorded just under $30 million in revenue from online wagers in October. According to NJ Gambling Sites, FanDuel Sportsbook is responsible for a majority of that revenue. The runner-up in the New Jersey market is DraftKings/BetStars operating under Resorts license, the duo generated ~$14.6 million in revenue in October.

Related Companies: Flutter Entertainment, PointsBet, DraftKings, William Hill

Nevada

October 2020 Total Handle: $659.6 million

Online Percentage: 57.1%

Market Leader: William Hill

Nevada has a rich history of gambling as the first state to legalize most forms of wagering in 1931. In 2010, Nevada allowed sports betting apps to go live, which opened the door to wagering outside of a physical sportsbook. In October 2020, Nevada posted a $659.6 million sports betting handle. Despite seeing fewer tourists than last year, sports betting increased 21.3% from October 2019. Online mobile sports betting was responsible for a little over half of the handle in October 2020.

States With Online Sports Betting

The market leader in Nevada is William Hill. The company boasts 32% of the total gross revenue market share in the state and attributes 69% of its bets taking place through its online channels. William Hill was recently acquired by Caesars Entertainment in a deal that values the company at $3.7 billion.

Related Companies: William Hill

Pennsylvania

October 2020 Total Handle: $525.8 million

Online Percentage: 89.8%

Market Leader: FanDuel

Pennsylvania is becoming one of the hottest online sports betting markets in the United States. I was in Philadelphia in September and every street corner had some sort of sports betting advertisement. The state set a sports betting handle record in September and followed that up with another record in October, reaching $525.8 million.

Online sportsbooks are aggressively going after the market with Penn National Gaming debuting the Barstool Sportsbook app in the state and DraftKings partnering with the Philadelphia Eagles to bring a premium lounge to Lincoln Financial Field.

However, the current market leader in the state is FanDuel. FanDuel sportsbook was responsible for $185 million of the October handle, followed by DraftKings ($123.4 million).

Related Companies: Flutter Entertainment, DraftKings, Penn National Gaming

Rhode Island

September 2020 Total Handle: $31.3 million

Online Percentage: 44.7%

Market Leader: William Hill

Rhode Island set a record in September 2020 for online betting with a total mobile handle of $14 million. The total handle in September topped $30 million, setting a 2020 record for the state. Rhode Island only has two sportsbooks in the entire state, and both are powered by William Hill, giving William Hill the entire market share.

States With Online Sports Betting

If you are wondering why Rhode Island only has two sportsbooks in the entire state, taxes could be playing a role. Rhode Island imposes a whopping 51% tax on operators, making The Ocean State the highest taxed sports betting jurisdiction in the world.

Related Companies: William Hill

Indiana

October 2020 Total Handle: $207.5 million

Online Percentage: 83.5%

Market Leader: DraftKings

Indiana, like many other states on this list, hit a sports betting handle all-time high in September, surpassing $200 million for the first time. Sports betting in Indiana launched in October 2019 with three books, DraftKings, FanDuel, and BetRivers, and the former is the current market leader.

In October 2020, DraftKings ($90.5 million) and FanDuel ($63.6 million) accounted for close to 80% of the total online handle in the state. BetMGM came in third boasting a $20.1 million monthly handle.

The current market leaders will need to keep an eye out for William Hill / Caesars who made their intent to enter the market clear by signing a multi-year deal with the Indianapolis Colts.

Related Companies: Flutter Entertainment, DraftKings, William Hill

Iowa

October 2020 Total Handle: $81.9 million

Online Percentage: 69.1%

Market Leader: William Hill

Iowa legalized sports betting in May 2019 and William Hill, Elite Sportsbook, and PointsBet launched later in the year. In October 2020, the state hit a sports betting all-time high with $81.9 million in total handle. The overall online handle of $56 million during the month was also a record high for the state. William Hill, the market leader, accounted for close to $35 million in bets.

Usa Online Sports Betting

Related Companies: DraftKings, William Hill

Illinois

September 2020 Sports Betting Handle: $305 million

Online Percentage: 92%

Market Leader: BetRivers

The sports betting handle in Illinois rose to $139.8 million in August, a 166.7% increase from July. The market leader for the month was BetRivers, which accounted for around 85% of the total handle during the month. However, this type of market share should not be expected to be maintained. Due to pandemic related in-person registrations closures and a complicated executive order by the governor, FanDuel and DraftKings were essentially unable to register new users for the entire month.

September should look different as it will be the first full month where FanDuel and DraftKings can freely onboard users. Also, William Hill and PointsBet entered the market in September. All this new competition should cut into BetRivers’ 85% market share from August.

September Update: As expected, in September 2020, BetRivers market share was reduced by new competition in the Illinois market. DraftKings brought in more than $95.8 million in wagers and nearly passed BetRivers, which led all online sportsbooks in September with a $98.5 million handle.

Related Companies: Flutter Entertainment, DraftKings, William Hill

West Virginia

September 2020 Total Handle: $76.9 million

Online Percentage: 77%

Market Leader: DraftKings

Sports betting in West Virginia saw a major boost from August to September. Total handle increased 90%, while revenue jumped 133% month-over-month. Currently, there are four major players operating in the state - William Hill, FanDuel, BetMGM, and the market leader, DraftKings.

Since launching in August 2019, DraftKings and its partner in the state, Hollywood Sportsbook, have seen $296 million in handle, with $94 million of that total coming from online bets.

BetMGM and FanDuel operate under the same license with The Greenbrier. The combined groups have brought in a total handle of $143 million, with $131 million of that total taking place online.

Related Companies: Flutter Entertainment, DraftKings, William Hill

Colorado

October Total Handle: $210 million

Online Percentage: 98%

Market Leader: DraftKings

Colorado sports betting has been on fire since its launch in May 2020. Sports betting in the state has seen a month-to-month increase in overall betting handle for five consecutive months. In July, CO passed $50 million in total handle for the first time; in September, the monthly handle surpassed $200 million. The growth can be attributed to a surge in online app accessibility. Bettors in Colorado can already wager on over ten different mobile apps, including DraftKings, FanDuel, BetMGM, BetRivers, and more. Users seem to be buying into the digital experience with over 98.4% bets being placed online since July 2020.

Estimates suggest that DraftKings is the market leader in Colorado followed by FanDuel, with both operators accounting for 84% of the state’s total gross gaming revenue since sports betting went live in the state in May.

Related Companies: Flutter Entertainment, DraftKings, William Hill

Oregon

September 2020 Total Handle: $26 million

Online Percentage: 100%

Market Leader: DraftKings-SBTech / Oregon Lottery

Oregon sports betting is complicated to say the least. The state only allows bettors to wager online through one app, Scoreboard, which is a partnership between the Oregon Lottery and SBTech. The app launched in October 2019 and as of March 2020, the Oregon Lottery had lost $2 million on the venture despite seeing ~$6 million in revenue. This is due to a complicated arrangement between the Oregon Lottery and SBTech who, according to Legal Sports Report, may have the better end of this deal. DraftKings and SBTech merged back in April 2020.

Oregon set a sports betting all-time high in September with $26 million in handle with football responsible for the majority of the action.

Related Companies: DraftKings

Washington DC

September 2020 Total Handle: $15.4 million

Online Percentage: 20%

Market Leader: GameBet

Just like Oregon, online sports betting in Washington DC is only allowed through a government operated app. Washington DC allows bettors to wager online through GameBetDC, an app operated by the DC Lottery. The app has a 1.6 out of 5 rating in the Apple Store and is being dominated by the only alternative in the city, the land-based William Hill sportsbook in the Capital One Arena.

In September, the William Hill retail sportsbook saw $12.2 million in wagers, close to four times more than the $3.2 million wagered on GameBetDC during the month.

State Of Michigan Online Sports Betting

Despite having the advantage of being the exclusive online offering, GameBetDC’s competition is only getting stronger. William Hill is opening a brand new luxurious sportsbook and premium lounge in the Capital One Arena in 2021 (the current set up is temporary due to the pandemic) and FanDuel is set to launch a retail sportsbook with D.C. United inside Audi Field.

Related Companies: William Hill

Online Wagering States

New Hampshire

October Total Handle: $47 million

Online Percentage: 85%

What States Allow Online Betting

Market Leader: DraftKings

New Hampshire set a state record in October by reaching $47 million in total sports betting handle, with 85% of that handle coming online. 100% of the online handle was placed on the state’s only mobile sportsbook, DraftKings. The DraftKings Sportsbook app saw $40 million in handle during the month of October in New Hampshire.

Related Companies: DraftKings

Table

StateMonthly HandleOnline PercentageMarket Leader
New Jersey$803 million93%FanDuel/Pointsbet
Nevada$659.6 million57.1%William Hill
Pennsylvania$525.8 million89.8%FanDuel
Rhode Island$31.3 million44.70%William Hill
Indiana$230.9 million84%DraftKings
Iowa$81.9 million69.10%William Hill
Illinois$305 million92%BetRivers
West Virginia$76.9 million77%DraftKings
Colorado$210 million98.40%DraftKings
Oregon$26 million100%DraftKings-SBTech / Oregon Lottery
Washington DC$15.4 million20%*GameBet
New Hampshire47 million85%DraftKings

* Information based off of September 2020 / October 2020 data. William Hill is the overall market leader in Washington DC, GameBet is the market leader for online betting because it is the only option allowed in the DC for online betting.

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