Sports betting has become legal in 40 U.S. states and jurisdictions, including Puerto Rico and Washington, D.C., with mobile sports betting permitted in 31 states. The legalization wave started in earnest after 2018 when the Supreme Court overturned PASPA, which had restricted sports gambling mainly to Nevada. Since then, many states have launched regulated betting markets, but the pace has slowed dramatically in recent years. In 2024, only Missouri passed legislation legalizing sports wagering, compared to six states in 2023 such as Florida and Ohio.

Despite this slowdown, the sports betting industry posted record revenue in 2025, with Americans wagering nearly $167 billion, an 11% increase from the previous year. Sportsbooks generated $16.9 billion in revenue—a 22.8% jump—and paid $3.7 billion in taxes, up 32.4%. However, the growth also highlights challenges, particularly from prediction markets like Kalshi and Polymarket that, while legal nationwide, operate outside state regulations. These platforms mimic gambling but are regulated federally, which the American Gaming Association says costs states hundreds of millions in tax revenue.

The legal landscape remains complex, especially in states like Texas and California, which are large but difficult to regulate due to political and legislative hurdles. Tribal states including Minnesota and Oklahoma also face challenges because of governance issues and native sovereignty. Some states continue to pursue legalization, often balancing tax revenue incentives with regulatory control, with nine states currently considering bills to expand or introduce sports betting in 2026.

States like Minnesota, Mississippi, South Dakota, and Wisconsin exemplify ongoing efforts to legalize or expand sports betting. Minnesota’s attempts are challenged by tribal politics, while Mississippi is pushing to enable online betting commercially. South Dakota voters may get a chance in November to approve online betting via a casino tax plan, and Wisconsin’s legislature is working to pass online betting legislation with tribal coordination. These efforts show that even as rapid legalization slows, significant opportunities and debates around sports gambling remain across the country.