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Sports betting is the most popular—and the most widely legalized—form of online gambling, skyrocketing from $4.34 billion in gross revenue in 2021 to $7.50 billion in 2022, according to the American Gaming Association. Twenty-six of the 27 states featured below have approved sports betting online.
Among the other types of gambling, six states have legalized online casinos: Connecticut, New Jersey, Pennsylvania, Delaware, West Virginia, and Michigan. Rhode Island has legalized online casinos but won't go live until 2024. Nevada, the country's gambling capital, has only legalized online poker (rather than a full suite of casino games that can be played online) and online sports betting.
In 2023, new online sports betting opportunities opened in Kentucky, Massachusetts, and Ohio. Florida passed legislation legalizing online sports betting, but it has been on pause because of a legal dispute.
And then there are sweepstakes casinos, which are allowed in most states and give players a chance to win real cash prizes. But these are different from real money casinos and are not lumped in with legal online gambling.
Gross revenue from online gambling, or iGaming, was up 22.6% for the first half of 2022, the American Gaming Association reported.
Gambling online was accepted in the United States from the late 1990s until 2006, according to the New York Times. That's when Congress banned gambling companies from taking online bets for "unlawful" transactions.
After the Supreme Court overturned a federal ban on sports betting in 2018, some states rushed to legalize it; by the following year, $13 billion had been legally wagered on sports games.
OddsSeeker researched 27 states where online gambling is legal, using news reports and government resources from across the internet. Three forms of online gambling were considered: online casinos, online poker, and online sports betting.
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Arizona
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2021
After Gov. Doug Ducey and Arizona tribal leaders reached an agreement in 2021, lawmakers approved betting on sporting events such as NFL and NBA games and fantasy sports. The Department of Interior signed off on an amended tribal-state gaming compact in which the tribes continue to guard their exclusive rights to most gambling in Arizona, as approved by voters in 2002.
Under the deal with the governor, the tribes may expand their casino offerings and provide sports and fantasy betting. Still, at least one state senator, Democratic state Sen. Sally Ann Gonzales—a member of the Yaqui community of Guadalupe—felt it was unfair to tribes, calling the legislation "a sham."
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Arkansas
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2022
Legislators legalized mobile betting in Arkansas in 2022, allowing residents to use apps to place bets from their mobile phones. Casinos lobbied to keep 51% of profits. The first mobile sportsbook—a place where wagers may be made—became available in April 2022. Tax revenue from sports betting totaled $583,000 in 2020 and $1.2 million in 2021, according to television station KARK.
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Colorado
Type(s)Â of legal online gambling: Sports betting
The first year of legal online gambling: 2020
Online sports betting in Colorado became legal in May 2020 with the requirement that bets be placed with authorized sportsbooks and operators. The Rocky Mountain State allows wagering at casinos and through mobile or web-based apps with partnerships with licensed Colorado casinos. An audit released in June 2022 found some problems with the expanded gambling: Regulators failed to complete background checks for most of the internet operators, and examiners uncovered discrepancies between some reported net proceeds and tax payments.
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Connecticut
Type(s) of legal online gambling: Casinos, sports betting
The first year of legal online gambling: 2021
Online sports gambling is offered in the Constitution State through the Connecticut Lottery Corporation, the Mohegan Tribe, the Mashantucket Pequot Tribe, and their online gaming operating partners. Bets can be placed on professional sports events and college athletics, such as the Rose Bowl and esports, unless one of the teams playing is from Connecticut and the game is not part of an intercollegiate tournament. Betting on the Olympics and other international sports, such as the World Cup, is also permitted; however, betting on poker is not allowed outside of social settings.
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Delaware
Type(s) of legal online gambling: Casinos
The first year of legal online gambling: 2012
Delaware was the first state to allow full online casino gambling, including slots, roulette, and poker. The vote among legislators was close, with opponents arguing that gambling brought with it too many social costs; however, proponents said the state had to be able to compete with the larger neighboring states of Maryland and Pennsylvania. Casino gambling is provided through the websites of the state's casinos.
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Illinois
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2020
Illinois approved sports betting in 2019 as part of a gambling expansion bill. Lawmakers had planned to require gamblers to register in person at a casino before placing their bets online, but Gov. J.B. Pritzker waived that requirement because of the coronavirus pandemic. Pritzker's office estimated that gambling could bring in more than $100 million annually, which could be allocated for statewide capital projects.
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Indiana
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2019
Online sports gambling began in September 2019 at 10 of Indiana's 13 state-regulated casinos for bettors within state borders. In 2022, sports betting revenues were at $386.9 million, 25% more than the previous year. Online sports betting represented nearly 90% of that revenue.
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Iowa
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2019
Iowa lawmakers approved online sports betting in 2019. Initially, the state required bettors to visit a casino once to prove they were 21, but that provision later expired, and bettors can now register online. After Gov. Kim Reynolds signed the legislation allowing wagering on professional and college teams, she said through a spokesman that legalizing gambling would bring betting out of an unregulated black market.
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Kansas
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2022
Nearly half a dozen sports betting apps are live in Kansas, which allows only online sports gambling. The first launched on Sept. 1, 2022, in time for the NFL season. Eventually, there could be 12 sports betting apps operating in the state, but online casino gambling remains illegal. The Kansas Expanded Lottery Act authorized the construction of four brick-and-mortar casinos, bringing the total to 10.
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Kentucky
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2023
Kentucky legalized sports betting in March 2023, and online sports betting will begin on Sept. 28. Lawmakers wanted the first online sports betting sites and apps in operation in time for the fall football season. The first sports betting bill was introduced in the state's legislation in 2019 but failed to win support.
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Louisiana
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2022
Louisiana got its online sports betting up and running at the start of 2022, in time for the Super Bowl, the biggest sports betting day of the year. The state awarded 20 licenses and allowed its 15 riverboat casinos, four horse tracks, and a land-based casino to apply for them first. Each licensee can offer two mobile platforms. Sixty percent of the collected tax revenue will go into the state's general fund, with another 25% for early education programs.
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Maryland
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2022
Maryland residents voted to legalize sports betting in 2020, and mobile sports betting went live in November 2022. Seven companies were licensed for the first round. The law authorizes up to 60 mobile licenses. One restriction: As other states have done, Maryland does not permit bets on sporting leagues run by Russia or Belarus because of the invasion of Ukraine.
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Massachusetts
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2023
Online sports betting went live in Massachusetts in early March 2023. In less than a month, residents made nearly $550 million in bets, according to the Massachusetts Gaming Commission—a staggering figure, especially compared to the $20 million wagered in person at Massachusetts' three casinos. The bets brought in more than $9 million in tax revenue for the state. Faced with the popularity of online sports betting in the state, some are urging caution. State Sen. John Keenan told GBH's "Talking Politics" host Adam Reilly that sports betting still needed tighter regulation.
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Michigan
Type(s) of legal online gambling: Casinos, sports betting, poker
The first year of legal online gambling: 2021
Online gambling in Michigan is permitted in the state's licensed casinos, which include 24 tribal casinos and three Detroit casinos. Michigan has emerged as one of the largest legal online casino markets in the world, with revenue of $1.58 billion in 2022, surpassing land-based casino operations. Online sports betting revenue was up by 36.8% at $399.6 million.
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Nevada
Type(s) of legal online gambling: Casinos (poker only), sports betting
The first year of legal online gambling: 2010
Nevada was the first state to approve interstate online gambling. Its lawmakers hurried to pass a bill permitting online poker—part of a race with New Jersey to become a key online gambling hub—according to the Las Vegas Sun.
World famous as the home of Las Vegas and Reno, Nevada first legalized gambling in 1869. The state later criminalized betting only to bring back what was called "wide open" betting in 1931. The online poker law allows residents to play poker with players in other states. Previously, Nevada lawmakers had planned to wait for federal action before authorizing gaming over the internet.
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New Hampshire
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2019
Gov. John Sununu cast New Hampshire's first legal online sports bet in 2019, choosing the New England Patriots to win Super Bowl LIV (who ultimately did not make the championship game that year). Sports betting is permitted through the New Hampshire Lottery Commission. As neighboring Massachusetts does not allow online gambling, Governor Sununu predicted hundreds of thousands of Massachusetts residents would cross the border to place bets.
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New Jersey
Type(s) of legal online gambling: Casinos, sports betting, poker
The first year of legal online gambling: 2013
Following Delaware and Nevada, New Jersey online gambling became legal and was considered a better test of its potential for revenue because of the range of games it allowed and its larger population, the New York Times reported. New Jersey took over as the lead mobile sports betting spot in the country after ​​legalizing it in 2018 (it has since been surpassed).
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New York
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2022
New York topped all other states in online gambling after it legalized the practice in January 2022. As reported by the New York Times, online gambling quickly brought in more than $2 billion in wagers and nearly $80 million in tax revenue through the first five weeks it was available. Gamblers spent $472 million in the week ending with the Super Bowl. Most of the New York State tax revenues from online sports betting go to fund education.
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Ohio
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2023
Online sports betting became legal in the Buckeye State on Jan. 1, 2023. Twenty-five licenses for mobile apps or sportsbooks can be approved, with Ohio's professional sports teams and casinos receiving preference. The state estimates all sports betting—on and offline—will be a $1.1 billion industry. Legislation, which the governor signed in 2021, calls for a 10% tax on net revenue, with almost all of the money going to public and private elementary and secondary education. About 2% will be allocated to help with problem gambling.
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Oregon
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2019
Oregon offered a live, state-run sports betting app in 2019, becoming the eighth state to do so. According to the Oregon Lottery, 9.8 million bets were placed in 2021, an increase from 7.1 million in 2020. The state had gambling revenues of $331.6 million, up 52% from the year before. In January 2022, DraftKings took over Oregon's sportsbook and is now the only sportsbook (online or otherwise) available in the state. The state has yet to launch any kind of retail sports wagering. In 2022, sports betting revenue in the state was up 62.9% at $49.5 million.
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Pennsylvania
Type(s) of legal online gambling: Casinos, sports betting, poker
The first year of legal online gambling: 2019
Online sports bets were permitted in the Keystone State for the first time in 2019. Pennsylvania was the fourth state to offer online casino gambling, including slots and other such games. Online poker was added separately. The gambling expansion was agreed upon in 2017 by the Republican-controlled General Assembly and Democrat Gov. Tom Wolf to balance the budget while avoiding tax increases, according to Penn Live.
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Rhode Island
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2019
When Rhode Island Gov. Gina Raimondo signed a bill allowing online sports betting in March 2019, the state was the only one in New England to allow sports gambling. New Hampshire began permitting mobile sports wagers later that year. As in other states, Rhode Island legislators were divided among those eager to embrace new technology and generate new revenue for the state and those worried that easier gambling would lead to more gambling addiction problems.
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Tennessee
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2020
Tennessee has no in-person gambling sites, though it has an online-only sports betting program. Its sports betting began in November 2020. In 2022, sports betting revenue in the state reached $379.4 million, an increase of 58.2% from the previous year. This makes Tennessee the eighth-largest market for mobile sports wagering.
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Virginia
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2021
Virginia residents were able to make their first online bets in January 2021. As of the end of 2022, the state is the sixth-largest sports betting market in the country. Its online sports betting garnered revenues of $481.2 million, an increase of 68.3% from the previous year. Virginia's sportsbook, however, faces stiff competition from the more populous Washington D.C. region, especially as Maryland launched mobile sports betting in November 2022.
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Washington DC
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2019
Sports betting began in our nation's capital following a fight in the D.C. Council. The lawmakers chose a Greek company named Intralot to handle its online gambling, but a Washington Post investigation showed the contract benefited people with ties to City Hall. The city-owned gambling app GambetDC had flaws that hobbled its launch, but it has since recovered, reclaiming the top spot for sports betting in the state as of July 2023.
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West Virginia
Type(s) of legal online gambling: Casinos, sports betting, poker
The first year of legal online gambling: 2018
West Virginia was the fifth state to legalize casino games online, after Delaware, Nevada, New Jersey, and Pennsylvania. Among the table games allowed are blackjack, roulette, and keno. Online poker is also permitted. In 2022, the state showed strong growth in online casino revenue with $112.6 million, an increase of 84.9% from the previous year. Meanwhile, online sports betting accounted for 81.8% of total sports betting revenue, with $50.9 million in 2022.
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Wyoming
Type(s) of legal online gambling: Sports betting
The first year of legal online gambling: 2021
On Sept. 1, 2021, Wyoming became the 23rd state to legalize sports betting. Its law only allows for online sports wagering, with no physical sportsbooks. In 2022, online sports betting accounted for $14.8 million in revenue. This tripled revenue figure is unsurprising, given it's the state's first full year in operation. The first $300,000 tax revenue each fiscal year is given to Wyoming's Department of Health for problem gambling prevention and treatment; the rest is put into the state's general fund.
Data reporting by Karim Noorani. Story editing by Carren Jao. Copy editing by Paris Close. Photo selection by Clarese Moller.
Aine Givens is an iGaming and Sports Betting Regulatory Researcher & Analyst at OddsSeeker. She has worked in newspapers, publishing, and television, and now contributes her expertise in research and data for OddsSeeker. Over the years she has lived in Asia, the Middle East, and now New York City. She loves to travel & rescue pets!
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