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US BETTING LAWS: WHAT BETTORS NEED TO KNOW L444 casino

Posted on August 3, 2025 by L444.COM

03
Aug

Betting in America is not as straightforward as it seems. What’s allowed in one state might be strictly illegal in another. You can legally bet on sport in New Jersey, for instance, but in Utah, you cannot. This is why being familiar with the laws is necessary. Whether you’re betting online or in your local bookie’s, laws can change overnight. Mobile betting is legal in some states, but only at casinos in others. In this guide, we will take you through all you need to know to place a bet to avoid breaking the law.

Let’s get started!

CURRENT SPORTS BETTING LAWS IN THE US

State	Legal Betting Age	Online Betting Legal	Mobile Betting Legal	Retail Betting Legal
Alabama	N/A
Alaska	N/A
Arizona	21
Arkansas	21
California	N/A
Colorado	21
Connecticut	21
Delaware	21
Florida	21
Georgia	N/A
Hawaii	N/A
Idaho	N/A
Illinois	21
Indiana	21
Iowa	21
Kansas	21
Kentucky	18
Louisiana	21
Maine	21
Maryland	21
Massachusetts	21
Michigan	21
Minnesota	N/A
Mississippi	21
Missouri	N/A
Montana	18
Nebraska	21
Nevada	21
New Hampshire	18
New Jersey	21
New Mexico	21
New York	21
North Carolina	21
North Dakota	21
Ohio	21
Oklahoma	N/A
Oregon	21
Pennsylvania	21
Rhode Island	18
South Carolina	N/A
South Dakota	21
Tennessee	18
Texas	N/A
Utah	N/A
Vermont	18
Virginia	18
Washington	18
Washington, D.C.	18
West Virginia	21
Wisconsin	21
Wyoming	18

Sports betting is ever evolving with most US states legalizing it. Most legal sports wagering in the US is done online. Before 2018, offering this service from outside Nevada was illegal. In early 2024, North Carolina was the 30th state that allowed online betting. Now, 30 states plus Washington, DC, and Puerto Rico offer legal, regulated sports betting.

According to the American Gambling Association, 40 US states have legalized sports betting while only 11 states have not yet legalized it as of Feb. 27, 2025. Amongst these, Missouri (an US State) has legalized sports betting. However, it is still not in operation. Texas has not made sports betting legal. But, it will soon work on bills that enable legalized sports betting. That said, the total gross gaming revenue (GGR) in 2024 was $115 billion.

FEDERAL VS. STATE SPORTS BETTING LAWS IN THE US

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US STATES WHERE SPORTS BETTING IS LEGAL

Sports betting legality in the US is currently a peak discussion. Being a bettor, you might want to know about US states where sports betting is legal. Well, here is a list of US states that currently legalized sports betting.

Retail betting is legalized in 37 states and illegal in 14 states including Vermont, Tennessee and Maine. Online sports betting is legal in 34 states and illegal in 17 states in the US.

States like Utah and Hawaii continue to ban all forms of sports wagering.

US STATES WHERE SPORTS BETTING IS ILLEGAL

There are still some states where betting is illegal. The United States is actively working towards legalizing sports betting in remaining states where US betting laws do not approve betting in all forms. Let’s check out!

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LEGAL AGE OF BETTING IN THE US

Betting in the US is getting more exposure with more states engaging in legalized sports betting. However, gambling can be addictive and only the adults can engage in them. Thus, the US government has strictly enforced age restrictions. Some US state bettors need to be at least 21+ years of age to be able to bet. Some of the other US states mention that bettors need to be at least 18 years to take part in betting.

Let’s get some details here.

US STATES WHERE YOU CAN BET ON SPORTS AT 18

Rhode Island
Washington, D.C.
Kentucky
Montana
New Hampshire
Wyoming

US STATES WHERE YOU MUST BE 21 TO BET ON SPORTS

Indiana
Colorado
Ohio
Nevada
West Virginia
North Carolina
New York
Michigan
Mississippi
Arkansas
South Dakota
Louisiana
Maryland
Wisconsin
Delaware
Connecticut
Pennsylvania
Maine
Arizona
Virginia
Illinois
Oregon
New Jersey
Iowa

TAXES ON SPORTS BETTING IN THE US

Sports betting is legal in many parts of the U.S., but winnings aren’t all yours to keep. Just like regular income, gambling winnings are taxed. Whether you win online or at a casino, you may need to report it. This guide explains how sports betting taxes work. We’ll break down the taxes on sports betting in the U.S simply so you know what to expect and how to stay legal.

The Internal Revenue Service (IRS) taxes all gambling winnings including sports betting.

If you win $600 or more and it’s at least 300 times your bet, the casino or platform should give you a W-2G tax form. This may be handed to you or mailed later. You must receive it by January 31 of the next year.

If you win $5,000 or more, they might take out 24% for federal taxes before you even get your money.

Even if you win less than $600, you still have to report it on your taxes. It’s smart to track all wins and losses. Save receipts and notes.

Each bet must be listed on its own. You can’t subtract losses to report a smaller amount. For example, if you lose $600 on one bet and later win $1,000, you still have to report the full $1,000.

Whether you win $1 or $1 million, it all counts. Bigger wins get more attention from the IRS, so be careful and honest.

To submit your sports betting winnings according to US betting laws, you have to –

Report your wins on tax return as gambling income in point 8 of IRS form “Schedule 1 form 1040”.
Report your losses as itemized deductions on Schedule A of IRS form 1040 in case of any losses.

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FAQS ON US BETTING LAWS

Which states have legalized sports betting in the US?

The US has legalized sports betting in 40 states as of February 2025. Some of them include – Delaware, New York, New Jersey, Washington, Nevada, Ohio etc.

Is online sports betting legal in the US?

Yes, online sports betting is now permitted in most of the United States. As of April 2025, 32 states and the District of Columbia permit online sports betting. Besides, it isn’t everywhere legal. The US states like California, Texas, Georgia, and Utah still don’t allow online sports betting. If you live in a state in which the activity is legal, you can bet online via authorized apps or sites. Bettors must check the laws in their state before betting.

What are the challenges facing regulated sports betting in the US?

Regulated sports betting in the U.S. faces challenges such as –

State-specific rules
Protecting people from gambling harm
Legal disputes over betting eligibility
Confusion about online betting laws
Scandals and cheating concerns

These issues make it difficult for companies to offer the same services across states, protect people from gambling addiction, and manage and grow sports betting safely and fairly.

Is sports betting legal for federal employees?

Gambling activities are strictly prohibited in all government-owned or leased facilities unless specifically authorized by statute or regulation. Additionally, federal employees are prohibited from engaging in gambling activities while on duty. Disciplinary action may be taken against those who violate these regulations.

Is there a federal tax on sports betting?

Ensure you are aware of the sports betting tax regulations in your state. Also, remember that federal law mandates a 24% tax on gambling winnings exceeding $600 in a single wager, provided the total winnings are more than 300 times the bet amount.