LegalSportsBetting

US Sports Betting

Legal sports betting became a reality in the United States following a years-long legal battle pitting the state of New Jersey against a federal law called the Professional and Amateur Sports Protection Act of 1992 (PASPA) and a consortium of leagues that sought to maintain the status quo.

The case began with a law passed in New Jersey seeking to legalize sports betting. The major pro sports leagues and the NCAA sued to stop the law from taking effect on grounds that it was a clear violation of PASPA.

Multiple lower courts agreed with the leagues, but lawyers representing New Jersey contended PASPA itself was an unconstitutional law. The case ended up going all the way to the Supreme Court and a ruling was finally sent down in May 2018. In a landmark decision, the Supreme Court declared PASPA unconstitutional, freeing every state in the US to legalize and regulate sports betting as it sees fit.

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Where to Bet On Sports Online Legally

Online sports betting is legal in 30 states plus Washington DC, and an additional eight states have authorized retail sportsbooks only.

The state-by-state rollout of legal online sports betting has allowed lawmakers to enact regulatory models that best serve their constituents’ interests. However, this approach has also resulted in a fragmented market in which the laws vary from one state to the next. Some of the key details that vary between states include:

  • Which online sportsbooks are legal and licensed
  • Whether the minimum legal betting age is 18 or 21
  • Whether customers can use credit cards to fund their online betting accounts
  • College wagering rules, such as restrictions on games involving in-state college teams or bans on wagers determined by the performance of any individual college athlete
  • Restrictions on certain novelty prop bets, such as the outcome of the Super Bowl’s coin toss
  • Restrictions on non-sporting events and awards like the Oscars
  • Whether it’s legal to bet on esports competitions

Understandably, there are quite a few questions regarding what’s legal and where. The following state sports betting guides offer clear, concise explanations to help readers bet on sports safely, legally, and with minimal hassle.

States With Legal Online Sports Betting

The following states have authorized online sports betting.

Most states have opted for open market regulatory frameworks that allow multiple sportsbook brands to apply for licenses and compete for customers.

A handful of states have established monopoly markets by designating a single sports betting brand to be the state’s sole authorized online sportsbook.

States with In-Person Betting Only

Some states have taken a measured approach to legalization by authorizing retail sportsbooks and betting kiosks but not online sports betting.

These states authorized in-person person wagering only for various reasons, such as concerns over the social impacts of legalization, opposition from land-based casinos worried about losing foot traffic to online sportsbooks, or complex tribal gaming negotiations.

Online Sportsbook Reviews

Our team is committed to delivering honest and informative reviews of legal online sportsbooks and mobile betting apps for 2021.

Choosing which online sportsbooks and mobile sports betting apps to use is an important choice, we make it easier by compiling and comparing online bookmakers using a combination of social metrics and a data-driven approach.  

Important: USGambling.com lists licensed and regulated betting sites only. While it’s ultimately the responsibility of our readers to determine the legality of wagering in their jurisdiction, we only list legal betting sites because we believe that is the right thing to do.

Criteria We Use in Our Sports Betting Reviews

  • Odds: One important comparison point we make in all reviews is the generosity of the odds offered on average. Does one sportsbook offer -105 on certain markets instead of the standard -110? If so, we note it for your convenience. The same also goes for sportsbooks that tend to offer better payouts on underdogs and that ask you to risk less on favorites.
  • Promotions: Every betting site offers promotions to all customers, but not all promotions are equal. We compare promotions by the value provided to customers. This includes a careful review of all terms and conditions to ensure what you’re promised is what you actually get.
  • Banking: How easy is it to deposit funds and how quickly are winnings paid out? These are the types of questions we ask when reviewing banking options at every betting site. We also note any charges assessed to customers for making deposits or requesting withdrawals.
  • Accessibility: Our reviews discuss where every betting site is available on a state-by-state and country basis.
  • Licensing: Our commitment to only recommending licensed and legal betting sites includes verifying the status of every operator’s license. On every review page, you will see a full list of valid licenses held by that betting site.
  • Compliance: USGambling.com makes it a point to note any compliance issues each betting site has had in the past. Has a particular betting site ever been fined or reprimanded for failing to meet its licensing requirements? If so, we note that and explain what happened.
  • Software: A key point we cover in every review is the overall qualify in software. Poorly-designed software is rarely an issue in regulated markets these days as even software providers are vetted by licensing authorities, but we do make sure to discuss the pros and cons of each site’s user experience.
  • Support: Customer support goes a long way in showing how much a betting site truly values customers. Is 24/7 phone support offered? How quickly and accurately are questioned answered? We ask these questions and more when rating customer support.
  • Consumer Feedback / Social Signals: While experienced industry types can dissect a betting site to pieces, the feedback of the general public is hard to beat when it comes to the raw and unvarnished truth. Our reviews incorporate what actual consumers have to say as well as the overall sentiment found on social media postings related to each betting site.
  • Ease of Account Funding: We look at the deposit methods offered as well as the ease of using each method for every betting site. The easier it is to get started, the higher the rating in this area.
  • Speed of Payouts: Timely payouts are more than just a matter of convenience; they also tell a story about how much each betting site actually values customers and may even reveal potential concerns regarding the financial health of the site.

USA Sports Betting Deposits and Withdrawals

Depositing and withdrawing funds on legal US sports betting sites is generally straightforward, with multiple secure payment options available. However, the availability of specific methods may vary depending on the operator, the type of transaction (deposit vs. withdrawal), and state-level regulatory requirements.

Some states impose restrictions on certain banking methods, which can affect the options presented to users within those jurisdictions. Most legal sportsbooks support a range of commonly used payment methods, including:

  • Debit and credit cards (typically deposit-only)
  • ACH transfers/eChecks (available for deposits and withdrawals)
  • Online bank transfers (available for deposits and withdrawals)
  • Play+ prepaid cards (available for deposits and withdrawals)
  • PayPal (available for deposits and withdrawals, depending on operator approval)
  • Skrill (available for deposits and withdrawals)
  • Venmo (primarily for deposits; limited withdrawal availability)
  • Google Pay (typically deposit-only)
  • Apple Pay (typically deposit-only)
  • VIP Preferred e-check network (available for deposits and withdrawals)
  • Prepaid cards issued by the sportsbook (available for deposits and withdrawals)
  • Trustly (available for deposits and withdrawals)
  • PayNearMe cash deposits (deposit-only)

US Sportsbook Bonuses

Most of the highest-value bonus offers on legal sports betting sites are reserved for new customers making their first deposit. These welcome bonuses tend to be larger and more valuable than promotions for existing users, as sportsbooks seek to differentiate themselves in a competitive market.

Promotions for existing customers are usually smaller but still provide value through bet refund offers, odds boosts, and enhanced parlay payouts. Common types of US sportsbook bonuses include:

Bet and Get Offers

“Bet and Get” promotions reward new customers with bonus bets or credits after placing a qualifying wager. These offers usually require a small initial bet and return a sizable bonus. For example, an online sportsbook may welcome new users with a “bet $5 on any sport to get $50 in bonus bets” offer.

Pros:

  • Most bet-and-get offers require minimal upfront risk
  • Bonus usually paid regardless of the qualifying wager’s outcome

Cons:

  • Offers expire within a limited time frame
  • Payouts from winning wagers placed with bonus funds typically do not include the initial stake

First Bet Refund

If a new user’s first bet loses, the sportsbook will refund the losing wager, usually with non-withdrawable bonus funds that can be used on any market.

Pros:

  • Provides a safety net on initial wagers
  • Can place wagers you might not ordinarily place due to having a safety net

Cons:

  • Offers may only cover parlays partially or not at all
  • Refunded bonus bets may be subject to additional wagering requirements
  • Only pays if your first bet loses; no bonus if your first wager wins

Promos for Existing Users

One of the biggest factors in determining the quality of a sports betting app is the quality of its ongoing promotions. A good sportsbook will offer promos based around major events like the Super Bowl and NBA Finals. Meanwhile, a great sportsbook will offer regular promotions on a weekly basis, whether or not a major sporting event is imminent.

These promotions, which are regulated by state gaming authorities, are designed to attract and retain customers. Common types of sportsbook promos for existing users include:

  • Odds boosts that enhance the payouts on select markets
  • Odds boost tokens that bettors can use on the market of their choice
  • Enhanced parlay payouts
  • Loyalty programs that offer ongoing and increasingly valuable rewards

The Road to Legalizing US Sports Betting

The Supreme Court of the United States ended the federal sports betting prohibition on May 14th, 2018. That decision did not actually legalize sports betting all by itself, but instead struck down a federal law that prohibited all states except Nevada from legalizing or regulating sports betting.

Getting to this point was a long road with many twists and turns and, if we were so inclined, it is a road we could trace all the way back to the very founding of the country. But today, we’ll stick to the cliff’s notes version and save the full history of sports betting for another day. Suffice it to say, gambling and sports betting have been controversial for about as long as the United States has been a country.

Today’s story begins in 1992, the year the Professional and Amateur Sports Protection Act (PASPA) was signed into law.

The key portion of PASPA read as follows:

“It shall be unlawful for –

(1) a governmental entity to sponsor, operate, advertise, promote, license, or authorize by law or compact, or

(2) a person to sponsor, operate, advertise, or promote pursuant to the law or compact of a government entity, a lottery, sweepstakes or other betting, gambling, or wagering scheme based, directly or indirectly (through to use of geographic references or otherwise), on one or more competitive games in which amateur or professional athletes participate, or are intended to participate, or on one or more performances of such athletes in such games.”

To put it in plainer terms, PASPA prohibited states from legalizing sports betting. For as long as PASPA was in effect, there could be no expansion of sports betting in any state across the country.

The authors of PASPA included within the law a provision that one year would pass before the law takes effect. During that time, any sports betting schemes in place at the state level would be exempt from PASPA.

Nevada already had legal sports betting at the time and was therefore granted the sole exemption from PASPA for full-on sports betting. Limited sports lottery games in Oregon and Delaware were also exempted, while a law in Montana allowing establishments to run betting squares contests also received an exemption.

No new laws legalizing sports betting were passed during the one-year waiting period specified by PASPA, so true sports betting was effectively banned everywhere in the US other than Nevada.

The prohibition went unchallenged for nearly 20 years, until voters in New Jersey started the process that would eventually result in PASPA being struck down. In 2011, New Jersey voters approved a referendum to alter the state’s constitution such that the legislature would be permitted to introduce legislation legalizing sports betting at casinos, race tracks and over the internet.

Less than two weeks later, the Sports Wagering Act to authorize sports betting in New Jersey was introduced. The Sports Wagering Act of 2012 was approved by the legislature in January 2012 and Governor Chris Christie signed the bill into law a few days later.

The NCAA, NFL, MLB, NBA and NHL filed suit in August 2012 against Governor Christie, NJ Division of Gaming Enforcement Director / NJ Assistant Attorney General David Rebuck and NJ Racing Commission Director Frank Zanzuccki to enjoin the Sports Wagering Act from being implemented.

The leagues’ main argument was that New Jersey’s Sports Wagering Act was a direct and clear violation of the Professional and Amateur Sports Protection Act.

This set the stage for a court case that would be named Christie v. NCAA (later to be renamed as Murphy v. NCAA after a change in governorship)

The sports leagues held high ground as their argument was difficult to debunk. What New Jersey was attempting was indeed a clear-cut violation of PASPA. However, lawyers representing New Jersey did not even attempt to argue the Sports Wagering Act was compatible with PASPA. Instead, they argued PASPA itself was unconstitutional and should be ruled as such.

The US District Court in New Jersey ruled in favor of the leagues and the Third Circuit Appeals Court affirmed the decision in 2013. There was some hope among betting proponents that New Jersey could get the case in front of the Supreme Court, but the Supreme Court declined to hear the case in 2014.

The Supreme Court’s decision not to hear the case was a major setback for New Jersey and there was some talk at the time that it might be the end of sports betting legalization efforts for some time. Nevertheless, New Jersey officials went right back to the drawing board and decided to take a different tack.

In 2014, lawmakers introduced a law in New Jersey playing off a single sentence found in the Third Circuit’s decision: “We do not read PASPA to prohibit New Jersey from repealing its ban on sports betting…”

Under the Sports Wagering Act of 2014, New Jersey partially repealed “prohibitions, permits, licenses, and authorizations concerning wagers on professional, collegiate, or amateur sports contests or athletic events” at casinos and race tracks.

The idea here was to get around PASPA by not explicitly authorizing or licensing sports wagering; New Jersey simply wanted to end its prohibition at casinos and race tracks.

Although this was fairly described as a long-shot effort by some, the Sports Wagering Act of 2014 set the stage for a whole new round of legal maneuvering.

The NCAA and other pro sports leagues jumped to action once again and sued to stop the law from being implemented. Predictably, the District Court and Third Circuit both ruled against New Jersey.

Undeterred by previous setbacks, New Jersey appealed again to the Supreme Court in 2016. The Supreme Court issued New Jersey its first major victory of the entire saga in 2017 when it agreed to hear the case.

The Supreme Court’s decision to hear the case marked a significant turning point in the long-running legal battle. The fact the highest court of the land would even consider the case was a victory of its own because it indicated New Jersey’s argument that PASPA was unconstitutional held enough merit to be worth considering.

Oral arguments were presented before the Supreme Court in December 2017 and early reports from those present said the Justices hearing the case seemed sympathetic to New Jersey’s arguments. As those early reports indicated, the Supreme Court was indeed very sympathetic.

The Supreme Court of the United States settled the matter once and for all on May 14th, 2018. PASPA was ruled unconstitutional and stricken down in its entirety.

The 7-2 ruling opened the door to legal sports betting in the US by returning to individual states their right to regulate sports betting as they see fit. Numerous states have taken advantage of the opportunity since then and more are on the way.

It is also important to note that the Supreme Court ruling does not preclude Congress from regulating or even banning sports betting at the federal level. The main problem the Supreme Court has with PASPA was the way in which it dictated to state legislatures what they may and may not do, in violation of the anticommandeering principles of the 10th Amendment.