Current Status of Online Sports Betting in the United States
The landscape of online sports betting in the United States continues to shift as more states consider legalization. As of early 2026, 39 states have legalized sports betting in some form, while others remain resistant. The push for legalization is driven by the potential for significant tax revenue, job creation, and the popularity of sports among Americans. However, political opposition, tribal interests, and public health concerns have slowed progress in several key states. The Supreme Court’s 2018 decision to overturn PASPA opened the door for states to regulate sports betting, but the pace of change varies widely across the country.
Texas: A Key Battleground for Legalization
Texas stands out as one of the largest states where online sports betting remains illegal. Despite its size and the presence of multiple major professional and college sports teams, Texas has not passed any laws to legalize online sports betting or iGaming as of February 2026. Legislative efforts in 2025, including constitutional amendment proposals, failed to bring about any statutory or regulatory changes. Lieutenant Governor Dan Patrick has been a vocal opponent, controlling the Senate agenda and blocking progress. While Governor Greg Abbott has shown some openness to legalized gambling, the lack of Republican support in the Senate remains a major barrier.
Texans currently turn to Daily Fantasy Sports (DFS) and prediction market platforms as legal alternatives. Illegal betting still occurs through neighborhood bookies and offshore websites, highlighting the demand for regulated options. The next significant opportunity for legalization in Texas will come during the 2027 legislative session, as the state legislature meets every other year. Public opinion is shifting, with a recent University of Houston survey showing 73% support for casino gambling and 60% support for online sports gambling. If legalized, experts estimate that Texas could generate a $32 billion handle and $3.68 billion in gross gaming revenue annually, creating thousands of jobs and hundreds of millions in tax revenue.
Recent Legislative Activity Across the Country
Several states are actively considering new laws to legalize or expand sports betting and iGaming. In 2025, no new jurisdictions legalized sports betting, marking the first year without expansion since the Supreme Court’s decision. However, momentum remains strong in many regions. Minnesota and Oklahoma are among the states with a high likelihood of passing sports betting legislation soon. Minnesota’s proposal involves partnerships with tribes and pari-mutuel operators, while Oklahoma’s bill has support from both tribal and professional groups.
Other states, such as Virginia and Mississippi, are building momentum for iGaming and DFS regulations. Mississippi’s online sports betting bill cleared the House, but its fate in the Senate is uncertain. In Wisconsin, a Florida-style tribal-server model is under consideration, which could pave the way for statewide online betting. Massachusetts and New York are also seeing renewed efforts to pass iGaming legislation, though public health concerns and labor issues complicate the process.
States Facing Challenges and Delays
Not all states are moving forward at the same pace. Nebraska and Alabama have seen repeated failures in sports betting ballot initiatives and legislative proposals. South Carolina remains limited to lottery gambling, with Governor McMaster opposing expansion. However, his upcoming departure from office could open the door for future movement. California, the largest potential market, faces strong tribal opposition that has stalled all efforts to expand sports betting, iGaming, and sweepstakes. Courts have allowed some prediction markets, but broader gambling expansion is effectively on hold.
In Illinois, declining sportsbook revenue has prompted lawmakers to consider new iGaming and prediction market bills. Georgia is seeing its window for legalization close as prediction markets attract more bettors. Hawaii came close to passing sports betting last year, and renewed efforts are underway, though action may be delayed.
Economic Impact and Public Opinion
The economic benefits of legalizing online sports betting are clear. States that have legalized sports betting report increased tax revenue, job creation, and economic activity. In Texas, for example, a proposed 15% tax rate on sports betting could generate around $360 million per year in direct state tax revenue and create about 8,000 jobs. Restrictions, such as banning bets on college prop bets or home teams, could reduce the overall handle and tax revenue potential.
Public opinion is increasingly in favor of legalization. Surveys show strong support for both casino gambling and online sports betting, especially in states with large populations and vibrant sports cultures. This growing support puts pressure on lawmakers to act, even in states where political opposition remains strong.
Legal Alternatives and Responsible Gaming
While many states continue to debate legalization, Daily Fantasy Sports platforms remain a legal and popular alternative for many Americans. These platforms offer a similar level of excitement and engagement as traditional sports betting, but within the boundaries of state law. For those concerned about gambling issues, responsible gaming resources are available, including hotlines and support organizations like 1-800-MYRESET and www.ncpgambling.org.
Looking Ahead: What’s Next for Online Sports Betting?
The future of online sports betting legalization in the United States will depend on a mix of political will, public opinion, and economic opportunity. States like Texas and California represent major untapped markets, and their eventual entry could reshape the national landscape. The next few years will be critical, with legislative sessions in 2027 and possible voter referendums in 2025 offering new chances for progress.
For now, the patchwork of laws across the country means that Americans’ access to legal sports betting depends on where they live. As more states consider legalization, the industry will continue to evolve, bringing new opportunities and challenges for lawmakers, operators, and bettors alike.