PUBLISHED ON : 24-10-2024
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TL; DR
Popular Legal Markets: States like New Jersey, Pennsylvania, and Michigan were quick to capitalize on the new legal landscape, creating regulated, secure markets for both online and mobile sports betting.
Legal Landscape Still Evolving: As of 2024, more than 30 U.S. states have legalized sports betting, with some allowing both retail and online betting options, while others limit betting to in-person at retail sportsbooks.
Key Sports Betting Market Statistics:
The market for Online Sports Betting is expected to amount to US$14.30bn in 2024.
The market is expected to record a revenue CAGR of 10.73% from 2021 to 2029, reaching US$23.80bn in 2029.
The number of users using Online Sports Betting is expected to be 54.7m users by 2029.
By 2029, user penetration will reach 15.6% and will be 11.0% in 2024.
ARPU is forecast to total US$380.40.
Most revenue will be generated in the United States (US$14,300.00m in 2024) in a global comparison.
The user penetration in the Online Sports Betting market in Canada is projected to be 48.8 %.
In 2018, the United States Supreme Court took the Professional and Amateur Sports Protection Act (PASPA) off the books, causing a shift in sports betting in the United States too massive to ignore. As a result, states were given the power to legitimize sports betting by their own choosing, leading many to do so and driving up the amount of both retail and internet sports betting markets around the country. The legal sports betting space is becoming more competitive as more than 30 states legalized it to some extent by 2024.
For those interested in sports betting app development, it's essential to understand that the regulatory framework varies significantly from state to state. Some states have taken online sports betting to heart, but other states still limit the types of bets you can place or involve in-state collegiate play. To make sure you comply and succeed with launching an app, navigating these regulations is critical.
In this article, we will take a closer state by state look at the laws and regulations on sports betting to help entrepreneurs and developers get the information they need to succeed in this burgeoning market.
The following US states have made online sports betting legal:
Sports betting in New York hasn't been around for long, but they've already become one of the biggest in the US with both retail and online betting options. Sports betting has been adopted by the state with a comprehensive regulatory regime and a collection of huge revenue from online betting platforms.
Key Points:
Market Launch: The launch of retail sports betting was July 16, 2019, and it went live for online sports betting on January 8, 2022.
Authorized Operators: Upstate commercial casinos, tribal casinos and online operators all offer sports betting. The sportsbooks featured in the market are many in number, making the market highly competitive.
Restricted Bet Types: However, betting on in state collegiate teams and events is prohibited. New York college teams and any collegiate events held in the state are off limits to bettors and can’t be wagered on.
Age Requirement: To bet on sports at commercial casinos and online sportsbooks, bettors must be 21 years or older. But bettors at tribal casinos themselves must be at least 18.
Taxation & Revenue Allocation: Taxing online sports betting at a rate of 51% is among the highest in the country. Revenue from gaming taxes goes to statewide education programs, to local municipal and county governments and to property tax relief for New York citizens.
License Fees: Operators who operate online pay a one-time fee of $25 million.
New York is one of the most fertile states for sports betting, as the state has high taxes and is at the top in terms of market size, which means it will rake in a good amount of revenue for education and local government.
Along with neighboring New York, New Jersey was one of the most established sports betting markets in the US and was instrumental in the fight that saw PASPA overturned by the Supreme Court in 2018. Retail and online sports betting is offered within the state, luring a huge number of operators and bettors.
Key Points:
Market Launch: Sports betting launched in retail on June 14, 2018, with launch in online sports betting on Aug. 6, 2018.
Authorized Operators: Commercial casinos, racetracks and online operators in New Jersey are allowed to offer sports betting. The sportsbook market is very competitive with a lot of sportsbooks available for bettors.
Restricted Bet Types: It prohibits betting on in‐state collegiate teams and events. Wagers on college teams from New Jersey or on any collegiate events occurring in the state of New Jersey are disallowed for the Bettors.
Age Requirement: People have to be 21 years of age or older to make sports bets.
Taxation & Revenue Allocation: While retail sports betting revenue is taxed at 9.75%, online sports betting is taxed at 14.25%. Money raised from casino operations ties into Atlantic City's marketing and promotion efforts in the form of tax revenue which goes into the Casino Revenue Fund and the Casino Reinvestment Development Authority. Money from racetrack operations goes into the General Fund, as well as to local municipalities.
License Fees: A $100,000 one-time initial license fee and a $125,000 per year renewal is paid by the operators.
New Jersey’s sports betting market has proved itself to be one of the most successful ones in the U.S., it features a high count of operators and colossal tax pump contributing to state initiatives.
Sports betting is now a well-regulated and competitive market in Connecticut with both online and in person betting options. A mix of operators is allowed as a result of the state’s legal framework, all while making sure the access of bettors is as broad as possible.
Key Points:
Market Launch: Online sports betting began on October 12, 2021, but retail sports betting commenced on September 30, 2021.
Authorized Operators: Tribal casinos, online operators and the Connecticut Lottery (sports betting retailers and online platforms) offer sports betting.
Restricted Bet Types: It was prohibited to bet on in-state collegiate teams, like most other states. Bets are allowed on collegiate events so long as Connecticut teams are not involved.
Age Requirement: For the betting to happen the bettors must at least be 21 years old.
Taxation & Revenue Allocation: Tax on sports betting revenue is 13.75%. Under certain circumstances, provisions for operational expenses and payments are directed to the Connecticut Teachers’ Retirement Fund Bonds Special Capital Reserve Fund, with the majority of tax revenue directed to the state’s general fund.
License Fees: The cost of an initial license will be $250,000 for online operators and $100,000 for operators each year thereafter. What retailers working with the lottery pay is a $20,000 fee.
The sports betting market in Connecticut is well established and has clear guidelines, taxes rules in place that help state revenues and funds in the education system.
Although Massachusetts has a relatively new market for sports betting, it has been quick to embrace both retail and online sports betting. There is a clear regulatory framework set by the state, as it encourages operators to compete.
Key Points:
Market Launch: Online sports betting came online on March 10, 2023, while retail sports betting launched on January 31, 2023.
Authorized Operators: Commercial casino operators, racetracks, off track betting facilities known as OTBs, and online operators all offer sports betting. It gives bettors several options on every retail and digital platform.
Restricted Bet Types: Except in four team tournaments, betting on in state collegiate teams is forbidden. College athletes are also forbidden from prop betting.
Age Requirement: Sports bettors must be 21 or older to place a bet.
Taxation & Revenue Allocation: The tax is 20 percent on online sports betting revenue, 15 percent on retail sports betting revenue. The tax revenue is allocated as follows:
45% to the General Fund
17.5% to the Workforce Investment Trust Fund
27.5% to the Gaming Local Aid Fund
1% to the Youth Development and Achievement Fund
9% to the Public Health Trust Fund, supporting problem gambling research and prevention programs.
License Fees: A five-year license costs operators $5.2 million in licensing fees.
The sports betting environment in Massachusetts is structured and competitive with clear regulations, along with focusing on how revenue will be allocated for public benefits like workforce development and public health.
Tennessee is the first state to legalize sports betting online only, with no retail sports betting locations.
Key Points:
Market Launch: On May 24, 2019, sports betting was made legal and online sports betting went live on November 1, 2020.
Authorized Operators: In Tennessee, sports betting is available only through online operators. The state has no retail casinos, or its sportsbook locations in the physical form.
Restricted Bet Types: All collegiate events and athletes are also prohibited from in-game prop betting.
Age Requirement: The age requirement to bet on sports is 21.
Taxation & Revenue Allocation: A tax on sports betting handle is 1.85%. Money is apportioned using the revenue generated for areas such as education, local government and problem gambling treatment programs.
License Fees: Initial license fee Operator faces is $750,000. The annual renewal fee of $750,000 applies as well to operators to whom a handle of $100 million or more is attributable. Operators with a handle below $100 million only part with $350,000.
Official Data Mandate: In play betting in Tennessee must use official data.
Tennessee’s exclusively online sports betting model has rendered the market highly visible and has so far attracted a number of operators for its all-digital approach.
Vermont became legal for sports betting in January 2024 after the legislation of online sports betting in the state. Vermont became the second to last state in New England to legalize sports betting, marking a step in the right direction. Right now, all sports betting provided in Vermont currently is done online, with no in person sportsbooks.
Key Details:
Launch Date: On January 11, 2024, Vermont joined the ranks of the great many states with a sports betting industry.
Number of Operators: Small number of online sportsbooks will be set to house in the state. At this time, three sportsbooks are already active with the license in the market.
Sportsbook Options: If you’re a bettor in Vermont, you have access to sportsbooks that are reputable and offer great odds, with a variety of markets, headed up by DraftKings, FanDuel and BetMGM.
Under current law, Vermont sports betting fans are confined to online sites with no possibility of physical sportsbooks at casinos or other establishments. However, the idea behind Vermont’s regulations revolves around ensuring that bettors across the state do not encounter any glitches anywhere, and their experience as fans is safe and fair, and in controlled circumstances.
New Hampshire was one of the first states in New England to legalize sports betting. The sports betting is run through the New Hampshire Lottery and is available both online and for retail wagers.
Key Points:
Market Launch: Sports betting online opened for business on December 30, 2019, while retail sports betting premiered on August 12, 2020.
Authorized Operators: New Hampshire Lottery runs sports betting in New Hampshire with a limited number of licensed online operators and retail agents.
Restricted Bet Types: The prohibition is on betting on in-state collegiate teams and events.
Age Requirement: The minimum age is 18, which is an age below which bettors must be in most other states.
Taxation & Revenue Allocation: Online sports betting revenues are taxed at 51 percent while retail sports betting is taxed at 50 percent. Sports betting revenue goes to support education programs statewide.
License Fees: New Hampshire operators have no specific fees to pay for their license.
New Hampshire’s competitive tax structure and focus on funding education gives himstanding out in the new England sports betting market.
Many states have still waiting to initiate sports betting, and Maine is one of the newer ones to enter this market. Both retail and online sports betting became legal in the state and online betting became available very recently last December 2023.
Key Points:
Market Launch: Online sports betting officially goes live November 3, 2023. The launch of retail sports betting is anticipated to be in the near future with the date to be confirmed in due course.
Authorized Operators: Tribal operators offer online betting, four of them. Land based venues will include retail betting at 10 commercial casinos, off track betting locations, and racetracks.
Restricted Bet Types: College teams and related events played by in-state teams are prohibited to bet on.
Age Requirement: To place sports bets, bettors have to be at least 21 years old.
Taxation & Revenue Allocation: For sports betting revenue, 10% tax is charged. The revenue is allocated as follows:
6.5% to the General Fund
1% to cover administrative expenses for the Maine Gambling Control Unit
1% to the Gambling Addiction Prevention and Treatment Fund
0.55% to the State Harness Racing Commission to supplement purses
0.55% to the Sire Stakes Fund
0.40% to the Agricultural Fair Promotion Fund
License Fees: Commercial retail operators pay $4,000 every four years, while tribal mobile operators pay $200,000 every four years. Commercial retail partners and tribal mobile partners pay $40,000 every four years.
Maine’s recent entrance into the sports betting arena gives operators and bettors alike something to bet on as they look to generate tax revenue for a variety of state initiatives.
Pennsylvania sports betting is one of the biggest and some would say best regulated sports betting markets in the US with both retail and online options. With such a wide variety of operators in the state, it’s a highly competitive and accessible market.
Key Points:
Market Launch: On November 15, 2018, retail sports betting began, and on May 31, 2019, online sports betting started.
Authorized Operators: Commercial casinos, racinos, up to OTBs and some online companies offer sports betting. All types of sportsbooks both retail and online, are offered within Pennsylvania’s market.
Restricted Bet Types: Pennsylvania offers no real restrictions on the type of sports or events off which you can place bets.
Age Requirement: You must be over the age of 21 to bet.
Taxation & Revenue Allocation: Mentioned above is that Pennsylvania taxes sports betting revenue at a rate of 36% which is equivalent to 34% state tax and 2% county tax. Money from Pennsylvania tax revenue can be used to fund myriad state projects and initiatives, so most revenue ends up in the state’s general fund.
License Fees: The initial license fee for operators has been set at $10 million, and a renewal fee of $250,000 once every five years is mandated.
Pennsylvania has one of the most lucrative sports betting markets in the country, thanks to a compliance fee and large operator base, and a high tax rate.
Though there is a regulated sports betting market in the state of Michigan, it does allow for retail and online bets. Sports betting has been embraced by the state and there are clear laws and a wide range of operators to go through.
Key Points:
Market Launch: Sports betting at retail locations launched on March 11, 2020, and full online sports wagering became legal January 22, 2021.
Authorized Operators: Thanks to the development of commercial casinos, tribal casinos and online operators, Michigan offers quite a few sports betting options to embrace.
Restricted Bet Types: Betting in Michigan is free of any significant restriction on the kinds of bets.
Age Requirement: To place sports bets, bettors must be 21.
Taxation & Revenue Allocation: Commercial land based, and tribal sportsbooks are taxed at 8.40 percent and commercial online sportsbooks are taxed at 9.65 percent. Most sports betting tax money goes to the School Aid Fund, and $2 million per year is set aside to help firefighters get through cancer treatment.
License Fees: Operators pay an initial license fee of $150,000, including a $50,000 application fee. It charges an annual renewal fee of $50,000.
Official Data Mandate: The use of official data for in-play betting is mandatorily required unless operators can prove the terms under which such data is obtained to be commercially unreasonable.
In terms of making a bet, Michigan's sports betting market offers a great variety of betting options and is a very well-regulated environment for players and operators.
It was not that long ago that Kentucky entered the sports betting ring making both retail and online betting available. Its market has a high demographic rate of development, which attracts many bettors inside the state.
Key Points:
Market Launch: Sports betting became legal on March 31, 2023. On September 7, 2023, retail sports betting started, and online sports betting started soon after on September 28, 2023.
Authorized Operators: In Kentucky, sports betting is offered at racetracks, off track betting facilities (OTBs) and through online operators that have contracts with racetracks.
Restricted Bet Types: Kentucky has no particular rules with reference to bet types.
Age Requirement: Betting age is lower in Colorado, requiring bettors to be 18 instead of the majority 21 states require.
Taxation & Revenue Allocation: The tax is 9.75% on retail sports betting and 14.25% on online/mobile sports betting. The administration of sports wagering is covered with tax revenue, and education and treatment programs for alcohol, drug and gambling addiction are supported. The rest of the revenue then funds state pensions.
License Fees: Initial sports wagering license fees for racetracks are $500,000 and $50,000 annually. The fee is $50,000 for online operators and $10,000 annually for renewal.
Kentucky's sports betting market is quickly growing, concentrating on both retail and online opportunities, and its younger age requirement helps it stand out from some other states.
Indiana has put together a comprehensive sports betting market offering both online and retail betting. The state's strategy is inclusive, accommodating for all types of operators and all kinds of bets.
Key Points:
Market Launch: On May 13, 2019, retail sports betting went live, and on September 1, 2019, online one did.
Authorized Operators: Sports betting at the state level is commercially regulated in Indiana through casino, racino, off track betting facility (OTB) and online operators.
Restricted Bet Types: All other bet types are permitted, except prop betting on individual collegiate players.
Age Requirement: The minimum age of bettors is 21 years old.
Taxation & Revenue Allocation: Betting revenue from sports is taxed at 9.5%. A great deal of the tax revenue goes to the state’s general fund with some of it going to problem gambling treatment programs.
License Fees: An operator pays an initial license fee of $100,000 and an annual renewal fee of $50,000.
Indiana’s sports betting market is more or less well-structured with a whole range of betting options both online and in person, meaning it’s one of the most attractive markets for both operators and punters.
Sports betting is available online and in retail form and West Virginia is an early adopter, in the US world, that is. The regulatory system that has been established by the state offers good flexibility to bettors and operators.
Key Points:
Market Launch: Legalization of sports betting happened on March 9, 2018, with the launch of the first retail sports betting on September 1, 2018, and online betting on December 27, 2018.
Authorized Operators: In West Virginia, you can bet on sports through commercial casinos, racinos and online operators.
Restricted Bet Types: West Virginia has no major restrictions on the types of bets that people can place.
Age Requirement: In order to participate in sports betting, bettors must be at least 21 years old.
Taxation & Revenue Allocation: The 10 percent tax on sports betting revenue is transferred to the Public Employees Insurance Agency Financial Stability Fund. It helps to keep retiree premiums down, avoid benefit cuts, and cover increases in public employee premiums.
License Fees: An initial license fee of $100,000 required of operators, a renewal fee of $100,000 every five years.
The licensing and tax system of the market is straightforward, and West Virginia’s market provides a well-balanced regulatory framework that will attract both operators and bettors.
Retail and online sports betting operates in North Carolina, while online betting is fairly new. The state has precisely crafted its market such that there will be a blend of operators and also platforms to accommodate a vast scope of bettors.
Key Points:
Market Launch: On March 18, 2021, retail sports betting was launched with online sports betting to launch on March 11, 2024.
Authorized Operators: Tribal casino operators offer sports betting for retail bets. Once the online market is launched sports betting will be offered by online operators and sports stadiums that will join forces with an online operator.
Restricted Bet Types: North Carolina bet types seem to have no restriction at all.
Age Requirement: Placing sports bets requires that bettors be at least 21 years old.
Taxation & Revenue Allocation: Sports betting conducted online is to be taxed at 18%. Tax revenue is allocated to several areas, including:
Gambling addiction education and treatment is something the state pays $2 million a year to the Department of Health and Human Services for.
$1 million to North Carolina Amateur Sports and youth sports grants.
And also $300,000 to state university athletic departments.
Any remaining funds will be split 30 percent to the North Carolina Major Events, Games, and Attractions Fund and 50 percent to the state’s General Fund.
License Fees: These are a $1 million initial license fee and a $1 million renewal fee every five years for online operators.
With online betting on the horizon, North Carolina is well on its way to expanding its sports betting market greatly, offering sports wagering on a higher scale for operators and bettors alike.
Sports betting has been introduced in Virginia in a full and operational market, with the ability to bet online and at retail outlets. Sports betting was quickly adopted by the state and it’s still a diverse, competitive environment for operators.
Key Points:
Market Launch: Legalizing sports betting took place on April 22, 2020, with the market going live on January 21, 2021.
Authorized Operators: Commercial casinos and online operators, including pro sports franchisees, can run sports betting in Virginia.
Restricted Bet Types: Collegiate events are banned from prop betting, while wagers on in-state collegiate teams are forbidden.
Age Requirement: Betting is only for people aged 21 and above.
Taxation & Revenue Allocation: The 15% tax is placed on stadium sports betting revenue. 2.5% of this goes to problem gaming initiatives, and 97.5% goes to the state’s general fund.
License Fees: The first fee charged by Virginia is a $250,000 three-year license fee, and a $50,000 application fee for each named principal of applicant. The renewal fee is $200,000.
Official Data Mandate: Official league data must be used for in game wagering by operators.
Virginia's sports betting industry is well regulated, with measures to combat responsible gaming, along with good value for a lot of operators with the clarity of legal framework.
Ohio was one of the latest states to enter the sports betting market, giving sportsbooks both the retail and sign-up options. The state has a well-regulated framework for most operators and consumer protection.
Key Points:
Market Launch: Legalization of sports betting began on December 22, 2021, and retail and online betting became available on January 1, 2023.
Authorized Operators: There are three kinds of sports betting licenses in Ohio.
Type A: Up to 25 licenses available, online operators.
Type B: Casinos, racetracks and sports venues, along with other retail operators.
Type C: Bars, restaurants and other places with liquor licenses use kiosks or clerk operated terminals.
Restricted Bet Types: It's illegal to take prop bets on individual college athletes, but general bets on college events are OK.
Age Requirement: Anyone who places sports bets must be 21 years old.
Taxation & Revenue Allocation: The tax rate is 20% on sports betting revenue. 90% goes to local primary and secondary education, athletics, extracurricular activities etc. while the remaining 10% goes to the Sports Gaming Profits Education Fund. Another 2% of this goes to the Problem Sports Gaming Fund to curb gambling addiction.
License Fees: License fee varies with type and scale of the operator, ranging from $1.15 million to more than $5 million to the operator and (if applicable) to the mobile management services provider, depending on number of operators and mobile management services providers.
With funding for addiction services set up for Ohio's sports betting market, the state has designed the market to encourage competition while ensuring responsible gaming.
With Maryland offering both retail and online sports betting, there’s an entire market that’s comprehensive and regulated for bettors and operators to play in. It’s a competitive landscape for sports betting, and the state has attracted a number of operators.
Key Points:
Market Launch: Online sports betting launched on November 23, 2022, and retail sports betting launched on December 9, 2021.
Authorized Operators: Maryland allows both commercial casinos as well as operation at racetracks, sports arenas, and online platforms. However, licenses are also available for state fairgrounds, OTBs, commercial bingo facilities and other local businesses.
Restricted Bet Types: Individual college athlete prop wagers are prohibited, general wagers on collegiate competitions are permitted.
Age Requirement: Sports betting is only allowed on people who are at least 21 years old.
Taxation & Revenue Allocation: In Maryland, the sports betting revenue is taxed at 15 percent. It goes into the Blueprint for Maryland’s Future Fund, a ten year education funding initiative focused on early childhood, primary, and secondary education.
License Fees: License fees differ based on operator type, with a Class A1 license (for large casinos) running $2 million and smaller fees are paid by smaller operators. A single license goes for $500,000 to mobile operators.
Maryland’s sports betting market is intended to boost local businesses while generating buckets of revenue for Maryland’s state education initiatives.
While retail and online sports betting are now fully operational, Kansas is one of the newer states to get on board with sports betting.
Key Points:
Market Launch: Sports betting was made legal on May 12, 2022, and the market opened for retail and online service on September 1, 2022.
Authorized Operators: Kansas authorized commercial casinos, online operators and up to 50 partner businesses or entities per casino operator to offer sports betting. Further, tribal sportsbooks can open based on new compact agreements.
Restricted Bet Types: Kansas offers few restrictions on the type of bets you can place.
Age Requirement: To participate in sports betting, bettors must be 21 years old.
Taxation & Revenue Allocation: The sports betting revenue is taxed at 10%. Of note, the White-Collar Crime Fund gets $750,000 a year and 2 percent of revenue goes to the Problem Gambling and Addiction Grant Fund. Twenty percent of the remaining revenue goes to the Lottery Operating Fund and the rest, 80 percent, goes to the Attracting Professional Sports to Kansas Fund.
License Fees: Retail and online operators are not licensed to any fee and only are required to cover the costs of the background and suitability investigations.
Kansas is a complete package sports betting setup that takes care of promoting problem gambling treatment and bringing in professional sports teams.
The state of Illinois features a thriving market for sports betting, allowing service and online. The legislation in the state offers a wide variety of operators who compete with one another.
Key Points:
Market Launch: June 28, 2019, sports betting was legalized. The historic launch of retail sports betting occurred on March 9, 2020, with online sports betting becoming live on June 18, 2020.
Authorized Operators: Illinois sports betting sites are allowed to offer sports betting including commercial casinos, racetracks, online operators and sports arenas.
Restricted Bet Types: Bettors can bet on in state collegiate teams but it has to be made in person, not online. Furthermore, wagers are only based on game outcomes, not on prop bets of any kind for individual player performances.
Age Requirement: And you have to be 21 to place sports bets.
Taxation & Revenue Allocation: Revenues from land based sports betting are taxed at 15 percent to 17 percent and online betting revenues at 15 percent. Sports betting revenues go towards school and recreational facility projects.
License Fees: Land based operators will pay an initial fee of $10 million while the online operators pay $20 million. Each four years, renewal fees are $1 million.
Official Data Mandate: In-play and prop betting at Illinois must be done using the use of official league data.
With a well-regulated and broad sports betting market, much of the revenue from Illinois sports betting helps fund public infrastructure projects, making it one of the most important states in sports betting.
Arkansas legalized sports betting relatively early among many of the states and offers both retail and online sports betting. It’s set up to support a variety of operators, and for bettors and businesses to operate at every level of the market.
Key Points:
Market Launch: Online and retail sports betting launched on July 1, 2019, and online sports betting launched on March 6, 2022.
Authorized Operators: In Arkansas, sports betting is allowed at commercial casinos, racinos, and by online operators. It creates a competitive environment of several operators.
Restricted Bet Types: While Arkansas can prohibit betting on in state professional teams and events, this does not apply statewide.
Age Requirement: All bettors must be 21 years old to bet on sports.
Taxation & Revenue Allocation: Arkansas's taxation system is tiered. For the first $150 million in revenue, you pay 13% tax, and 20% thereafter. The bulk of tax revenue goes to the state’s general fund, with a portion for race purses and local government beneficiaries.
License Fees: Sports betting operators in Arkansas don’t pay any specific licensing fees.
With a flexible, growing sports betting market, Arkansas provides great opportunities for operators and players alike, thanks to both having retail and online betting options.
Sports betting in Wyoming is simple and straightforward both online and at retail. However, it's unique in the fact that it allows younger bettors — 18 is the legal betting age.
Key Points:
Market Launch: On September 1, 2021, online sports betting was launched.
Authorized Operators: Online operators licensed in at least three U.S. regulated jurisdictions are authorized in Wyoming. Betting is online only, as there are no retail casinos or sportsbooks in the state.
Restricted Bet Types: Wyoming has no restricted bet type, so you will have chances to bet on many sports and events.
Age Requirement: Unlike most others, where the minimum age for a better is 21, a person in Nevada needs to be at least 18.
Taxation & Revenue Allocation: Sports betting revenue is taxed at 10%. A part of the money, $300,000 annually, is for problem gambling treatment. Any remaining tax revenue is sent to Wyoming’s General Fund.
License Fees: The initial license fee for Wyoming is $102,500, and a renewal fee of $52,500 every five years.
A number of sports bettors will be interested in Wyoming’s stance on online sports betting, as well as its lower betting age and clearer regulatory environment.
Both retail and online betting are available in Louisiana, so the market is pretty broad when compared to how most other states offer sports betting. However, even then sports betting is limited to certain parishes in the state.
Key Points:
Market Launch: On October 6, 2021, retail sports betting launched, with online sports betting authorized to launch on January 28, 2022.
Authorized Operators: Sports betting is allowed at commercial casinos, tribal casinos, racetracks, and through operators on the web. And the Louisiana Lottery provides sports betting through online portals and in–house kiosks at local bars and restaurants. If all casinos and racetracks do not apply, licenses could, however, be issued to video poker establishments, OTBs and fantasy sports operators. This create a great opportunity for fantasy sports web development in Louisiana
Restricted Bet Types: Sports betting is limited to 55 parishes unless the types of bets are regulated.
Age Requirement: To participate in sports betting, bettors must be 21 years old.
Taxation & Revenue Allocation: For retail sports betting, it's 10%, but for online sports betting it's 15%. The tax revenue is allocated to several areas, including:
25% (up to $20 million) to the Early Childhood Education Fund
10% to each parish where the taxable activity occurred
2.5% to the Sports Wagering Purse Supplemental Fund
2% or $500,000 (whichever is greater) to the Behavioral Health and Wellness Fund
The remaining revenue goes into the state’s general fund.
License Fees: The cost to operators is an upfront application and license fee, amounting to $750,000, and a $500,000 renewal fee every five years. Fee structures vary from platform provider to platform provider.
While Louisiana’s sports betting market is very well regulated, you will find there are some geographic restrictions and quite a few options, particularly when it comes to sports bets.
Iowa's legal sports betting market is, and has been, a mature one with a wide range of retail and online betting offerings for sports bettors to take advantage of.
Key Points:
Market Launch: On May 13, 2019, sports betting was legalized, with an official launch on August 15, 2019.
Authorized Operators: Online operators, tribal casinos and commercial casinos are all allowed to offer sports betting in Iowa.
Restricted Bet Types: There's no prop betting on in state collegiate teams. However, wagers can be placed on college games, but prop wagers on individual players or events within the game are not allowed to be made by the bettors.
Age Requirement: Betters must be over 21 years old.
Taxation & Revenue Allocation: Iowa charges a 6.75 percent tax on sports betting revenue, with the bulk of that revenue being directed to Iowa’s state general fund.
License Fees: Operators pay an initial license fee of $45,000 and an annual renewal fee of $10,000 in Iowa.
Iowa is a very competitive state to offer the sports betting market, both online and on the retail market.
Colorado has had both retail and online sports betting legal for some time, and has the establishment for a successful market. The sports betting market in the state is flooded with a variety of options and operators making it a pretty popular market to enjoy sports betting.
Key Points:
Market Launch: Retail sports betting launched June 17, 2020, and online sports betting began May 1, 2020.
Authorized Operators: Sports betting is allowed in Colorado by both commercial casinos, tribal casinos, and online operators. It helps foster a competitive and diverse market.
Restricted Bet Types: There is no prop betting on collegiate events, so in college games bettors are not able to bet on certain events or player performances.
Age Requirement: To place a sports bet, you have to be 21.
Taxation & Revenue Allocation: Revenue from sports betting is taxed at 10%. Several public purposes such as managing and enforcing sports wagering legislation and implementing the state’s water plan are to receive revenue.
License Fees: There is a fee structure in Colorado. The rate for the initial Master License Fee is $2,000 and it is renewed every two years for a fee of $250. Every two years, retail and mobile operator fees are set at $1,200 each.
Colorado’s market has a competitive operator environment and a clear regulatory framework, and it is thus an important voice on the U.S sports betting table.
Arizona was one of the most recent states to pass legal sports betting in 2021. The state has legal online and retail betting with residents being able to place bets through many different operators.
Key Points:
Market Launch: Arizona formally opened sports betting on Sept 9, 2021.
Authorized Operators: Arizona permits a blend of operators – 10 employees tribe’s casino operators and 10 expert sports venues/teams. Furthermore, limited event wagering licenses could be issued to as many as 10 racetracks and offtrack betting facilities (OTBs).
Restricted Bet Types: Collegiate prop bets are banned. What this means is that bettors can bet on college sports but cannot bet on prop bets on individual players.
Age Requirement: Sports betting is only for people over 21 years of age.
Taxation & Revenue Allocation: Online sports betting has a 10 percent tax rate while retail sports betting has an 8 percent tax rate. The Arizona Department of Gaming takes a cut of all the revenue (for regulating the market) and whatever portion of the revenue is left over goes to the general fund for the state.
License Fees: Arizona has a tiered licensing structure. Application fees for event wagering operators are set at $100,000; an initial license fee is $750,000; and annual renewal fees total $150,000. Event wagering operators, who are a limited class of wagering operators, have much lower fees.
Official Data Mandate: Operators have to use official data for in play bets, according to the leagues.
The state is one of the biggest players in the development of a new sports betting industry, thanks to how many operators and bet types of the market can provide.
Sports betting has long been big business in Nevada and the state has one of the most advanced markets in the U.S. Since 1949, Nevada has been the only state to regulate sports wagering, and sports betting has been legal in the state since then.
Key Points:
Market Launch: Retail sports betting became legal in Nevada in 1949, and online sports betting followed in October 2013.
Authorized Operators: Sports betting is permitted by both commercial casinos and online operators. The market is strong, and a multitude of operators are in the space.
Restricted Bet Types: Nevada has no significant restrictions on betting types, so Nevada residents can bet on a lot of types of sports.
Age Requirement: In other words, bettors need to be at least 21 years old.
Betting Account Registration: In Nevada, one of the requirements is that consumers must register in person at a sportsbook before they will be able to use a mobile app to place sports wagers.
Taxation & Revenue Allocation: The tax rate on sports betting revenue is 6.75 percent, and revenue mostly benefits the state’s general fund. The sports betting funds money help education and the health sector in the country.
License Fees: Initial license fees for the operator will be $500 with no renewal fees.
Sports betting continues unabated in Nevada, a prime bettors’ destination with little restriction, a highly mature market.
Retail and online sports betting have been legalized in Oregon. The market, though, is highly regulated and narrow. Much of the state's sports betting is conducted through the Oregon Lottery.
Key Points:
Market Launch: Betting on retail was introduced on 27th August 2019, while online betting was introduced on 15th October 2019.
Authorized Operators: Sports betting is available through kiosks, retailers or in the Oregon Lottery's online play platform. Tribal casinos can also offer sports betting, too.
Restricted Bet Types: Oregon Lottery does not allow betting on Collegiate Teams or Events making it impossible to be able to bet on college sports through the state run system.
Age Requirement: The minimum bettors age for sports betting is 21.
Taxation & Revenue Allocation: Money from the lottery’s sportsbook app goes toward paying off the state’s public pension liability, which means that all the revenue from the sportsbook app comes back to the public sector.
Sport betting in Oregon is run through the state lottery, who host one of the most centralized sports betting systems in the country, with restrictions on collegiate sport betting that both bettors and operators will need to be aware of.
Let’s know which US states have legalized retail sports betting but are yet to legalize online sports betting.
With the Supreme Court overturning the federal ban on sports betting in 2018, Delaware was one of first states to legalize the activity. Also, online sports betting is restrained even if the market is still very little compared to the other states.
Key Points:
Market Launch: On June 5, 2018, retail sports betting hit the market. However, the market is still restricted and currently, BetRivers operates the only legal online sportsbook in the state and three Delaware online casinos in partnership with the three brick-and-mortar locations.
Authorized Operators: The Delaware Lottery offers sports betting in partnership with racinos (racetrack casinos). And also, professional football parlay betting is available through retail lottery outlets.
Restricted Bet Types: Delaware excludes collegiate teams from in-state betting markets.
Age Requirement: Placing sports bets requires bettors to be 21 years old.
Taxation & Revenue Allocation: Soccer betting revenue drives to Delaware’s general fund, and lottery revenue to the race purses, while 50 percent of sports wagering income is taxed.
License Fees: No operator-specific license fees are set out in Delaware.
In most part, Delaware’s sports betting market is dependent on its racino and lottery system and that’s why the launching of online betting is anticipated to bring more market growth.
Montana’s sports betting market operates differently than the rest by being run through the state lottery. This is a different approach than the commercial and tribal operator models prevalent in other states.
Key Points:
Market Launch: Launch of retail sports betting on March 11, 2020.
Authorized Operators: Montana is one of the states that offer sports betting through the Montana Lottery – kiosks can be found in bars and restaurants that are allowed to serve liquor. Mobile betting is permitted for bets made on the mobile app, but only when the bettor is physically at a licensed retail location.
Restricted Bet Types: The lottery director has the power to set parameters on which sports and what type of bet will be allowed. There are no major restrictions in place as of now.
Age Requirement: The bettor must be 18 years old.
Taxation & Revenue Allocation: 6% of the handle goes to sales agents, who enable sports betting. Sports betting taken from the lottery goes into the state’s general fund.
License Fees: Businesses will pay a $50 one-time application fee to become licensed retail locations.
Unlike other states, Montana views the state lottery as its sports betting outlet, and mandates mobile bets must be made at licensed locations, which provides a more controlled betting environment than just allowing sports to be wagered upon.
Sports betting in Wisconsin is limited to just retail within tribal casinos. Betting on sports online or via mobile is not yet legal within the state.
Key Points:
Market Launch: On July 1, 2021, sports betting was legalized through a new compact, and it officially launched November 30, 2021, at tribal casinos.
Authorized Operators: The sports betting will be provided only by tribal casino operators. No commercial or online operators exist.
Restricted Bet Types: This category prohibits betting on in state collegiate or amateur teams or events.
Age Requirement: Only people above 21 years can place bets.
Taxation & Revenue Allocation: No specified tax rates and no details available to the public as to how sports betting tax revenue is allocated in Wisconsin exist.
License Fees: Currently, licensing fees in Wisconsin are unreported.
While only in-person betting at tribal casinos is permitted in Wisconsin sports betting, there are legislative efforts in place to expand the opportunities.
Sports betting is legal in Washington, but with restrictions. The law was legalized on March 25, 2020, and the first market was launched on September 9, 2021. But only tribal casinos are allowed for sports betting, so online and mobile sports betting is not legal anywhere but there.
Key Points:
Authorized Operators: Sports betting is allowed only by tribal casino operators. There is no commercial operator in the state.
Restricted Bet Types: Residents are not allowed to bet on in state collegiate teams, meaning no Washington Huskies for fans.
Age Requirement: Placing a bet is only permissible to bettors who are at least 18 years old.
Taxation & License Fees: No specific tax rates or license fees are reported, and the tribes are simply made to pay for the state's regulatory oversight.
Washington sports betting app developers should know that mobile sports betting is currently not allowed outside of tribal casinos. This severely limits opportunities for app-based sports betting platforms in the state.
Mississippi was an early adopter of sports betting, but the market is small because laws prevent mobile and online betting. The bets placed online must be made from the physical premises of a casino.
Key Points:
Market Launch: On March 13, 2017, sports betting was legalized, and on August 1, 2018, retail sports betting launched.
Authorized Operators: Sport betting is authorized by both commercial and tribal casinos in Mississippi. All online or mobile betting, however, must occur on casino property and bettors are not allowed to place wagers from the outside.
Restricted Bet Types: Obviously, there are no restrictions on bets that can be made.
Age Requirement: You must be at least 21 years old to bet.
Taxation & Revenue Allocation: The state takes 8 percent, and 3 to 4 percent goes to the locality in which the money is generated. Using the revenue, projects are initiated on road repairs and sewer systems amongst others.
License Fees: Operators pay no specific licensing fees.
Mississippi’s decision to confine mobile sports betting to casinos served to keep one foot in the casino world and pin the state’s sports betting industry to retail.
Sports betting was one of the first to be allowed in New Mexico but there were caveats. As of now, there is no legal online sports betting in the state, but all betting is limited to tribal casinos.
Key Points:
Market Launch: The first retail sports bets were taken on October 16, 2018, and sports betting was legalized in May 2018.
Authorized Operators: New Mexico only allows sports betting to be operated by tribal casino operators.
Restricted Bet Types: The state’s retail sports betting is free of any restrictions on bet types.
Age Requirement: Participation is only open to those that are at least 21 years of age.
Taxation & Revenue Allocation: New Mexico doesn’t have public tax rates or outright information on how sports betting revenue will be allocated.
License Fees: Licensing fees are unknown.
For now, online sports betting remains illegal in New Mexico, meaning its market is smaller and more limited compared to some of the markets with a mobile betting presence.
Legal betting in North Dakota is limited to tribal casinos on sports betting. Mobile or online betting options for the public is not yet in the state's embrace.
Key Points:
Market Launch: In May 2018, sports betting was legalized and the market kicked off on June 23, 2021.
Authorized Operators: Sports betting can only be performed by tribal casino operators in the state.
Restricted Bet Types: North Dakota has no specific bet types of restrictions.
Age Requirement: The bettors must be at least 21 years old.
Taxation & Revenue Allocation: There is no detail, or specific information pertaining to tax rates and revenue allocation, for sports betting in North Dakota.
License Fees: No publicly available data exists on license fees for operators in the state.
With online sports betting banned in North Dakota, this market is limited to including in person betting at tribal casinos.
While sports betting is legal only in a limited form in Nebraska, you are not able to wager online. All betting is confined to in person wagers at certain locations.
Key Points:
Market Launch: Legalization of sports betting took place on May 26, 2021, while it launched on June 22, 2023.
Authorized Operators: Sports betting is authorized only on Nebraska racinos (racetrack casinos).
Restricted Bet Types: Like many other states, betting on in state collegiate teams is prohibited.
Age Requirement: To place sports bets, bettors need to be at least 21 years old.
Taxation & Revenue Allocation: Revenu Sports betting is taxed at 20%. 70% is devoted to property tax relief, 25% goes to local governmental bodies where gambling is authorized, 2.5% is provided to the general fund and 2.5% is designated to prevention and treatment of problem gambling.
License Fees: Operators in Nebraska are not subject to any specified license fees.
Nebraska sports betting is in its infancy, featuring only a handful of in person betting options, with online or mobile betting not allowed in the state.
South Dakota does have a pretty small sports betting market, both in terms of what is available for wagering, and also what is legal. Sports betting activities can only take place in some locations within the state under this law.
Key Points:
Market Launch: Legalization of sports betting was on March 18, 2021, with the market going live on September 9, 2021.
Authorized Operators: South Dakota authorizes commercial and tribal casinos to run sports betting.
Restricted Bet Types: Since collegiate teams within the state can’t be wagered on, nor can prop bets be placed on a collegiate athlete.
Age Requirement: People under 21 years old are not allowed to place sports bets.
Taxation & Revenue Allocation: Revenue from sports betting attracts a tax rate of 9%. Sports betting revenue goes towards the same fund that all other gaming revenue in the state goes towards.
License Fees: Operators have no specific license fees.
However, South Dakota’s sports betting is quite restrictive as you cannot place a waddle online or on your mobile phone and that limits any further developments to the physical casinos.
Sports betting in Florida is unique and evolving. Both retail and online sports betting are technically legal, but ongoing legal disputes have delayed the full launch of sports betting operations.
Key Points:
Market Launch: Sports betting was first announced online on November 7, 2023, with in person sports betting launching on December 7, 2023. The legality of compact is yet to be challenged in federal court, however.
Authorized Operators: The exclusive rights to operate sports betting belong to the Seminole Tribe of Florida. They also owe to negotiate wake up with parimutuel operators so that they can put on similar sports wagering services and market them.
Restricted Bet Types: All collegiate events are prohibited to prop bet in Florida.
Age Requirement: To place sports bets, bettors must be 21 years old.
Taxation & Revenue Allocation: Tribal generated sports betting revenue is taxed at 13.75% for the Seminole Tribe, but if the tribe fails to reach a marketing deal with at least three parimutuel operators the tax rate jumps to 15.75%. A hybrid scheme is used: 3 per cent is for allocation to local county and municipal governments, while 10.75 per cent is left to discretionary distribution by the state.
License Fees: Tribal or pari-mutuel operators are given no specific licenses fees as of now.
Florida’s sports betting market continues to bubble in flux, due to ongoing legal battles. Although the launch of sports betting in the state has been fairly recent, the outcome of these court rulings will dictate whether the state sees any future of sports betting.
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As an example, we had an sport betting app project aimed at bringing together different real time sport events, while giving the customers updated odds in real time and allowing customizable betting with interactive elements to engage the users. This app had been created with a beautifully integrated user interface with advanced features such as secure payment gateways, live score updates, and social sharing.
We are uniquely experienced in developing bespoke applications which will lead to powerful, scalable and secure platforms which can be leveraged to enter the rapidly expanding online sports betting market. We constantly adhere to the state wise regulations and make sure that the platform is formatively legal in all the jurisdictions.
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Working with Biz4Group ensures your online sports betting app will be in capable, innovative, and experienced hands, leaving you well placed in the competitive sports betting arena.
But online sports betting is far from being legally uniform in the U.S.; rather, it varies widely from state to state, where each state imposes its own regulations, restrictions and market structure. Some states have fully endorsed both retail and online betting, while others are more conservative not allowing certain operators, or limiting certain types of wagers. With sports betting continuing to grow, operators and bettors alike must stay informed of the ever changing laws in each state.
However, if you’re interested in constructing your own sports betting platforms, knowing these specific state regulations will be vital to your compliance and success. As it is a market with diverse tax rates, fees licenses and opportunities, the U.S. sports betting business offers great potential for businesses daring to consider to come alive on this context. Whatever your approach — fully remote, a mix of retail and online — your sports betting platform must be molded and made to comply with each state's regulations to prosper in this exploding marketplace.
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