Current Landscape of Online Sports Betting in the United States
The landscape of online sports betting in the United States continues to evolve as more states consider legalization and regulation. Since the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) in 2018, states have gained the authority to decide their own sports betting laws. This decision sparked a wave of legislative activity, with many states moving quickly to launch legal sports betting markets. Today, over 30 states have legalized some form of sports betting, but the rules and availability of online sportsbooks vary widely. The push for legalization is driven by strong public interest, potential tax revenue, and the desire to regulate an activity that was previously handled by offshore or illegal operators.
California: A Key State Still Without Legal Sports Betting
California remains one of the largest untapped markets for online sports betting in the country. Despite its massive population and passionate sports fan base, both online and retail sports betting are currently illegal in the state. In 2022, voters rejected two major ballot measures—Proposition 26, which would have allowed retail tribal sportsbooks, and Proposition 27, which aimed to legalize statewide online sportsbooks. The failure of these measures was due in part to a lack of agreement between tribal groups and commercial operators. As of 2026, no licensed sportsbook apps or retail sportsbooks operate legally in California. Major national operators like FanDuel, DraftKings, BetMGM, and Caesars do not offer traditional sportsbook wagering inside the state. However, Daily Fantasy Sports (DFS) contests remain legal and popular, with platforms such as Underdog Fantasy and DraftKings Fantasy accepting California users.
Legal Alternatives and Responsible Gambling in California
While traditional sports betting is not allowed, California residents have access to several legal gambling options. These include DFS contests, horse racing pari-mutuel wagering at licensed racetracks, tribal casino gaming (excluding sports bets), the state lottery, and licensed card rooms. DFS contests are based on player statistics rather than game outcomes, which differentiates them from standard sports betting. Responsible gambling resources are available for those who need support, and if sports betting is eventually legalized, these services are expected to expand. The minimum age for most regulated gambling activities is 21, though some DFS platforms allow users aged 18 and older.
Recent Developments in Other States
Across the country, several states are making significant moves toward expanding online sports betting and casino gaming. Maine became the eighth state to legalize online casinos in early 2026, allowing four Wabanaki Nations tribes to license operators. The law sets a 16% tax rate on revenue, but a lawsuit from Oxford Casino Hotel could delay the official launch. Virginia is also close to legalizing online casinos, with bills passed by both the House and Senate. These bills propose allowing each land-based casino up to three online casino licenses and set a 20% tax rate on adjusted gross revenue. However, the bills must be reconciled before being sent to the governor, and a launch is not expected before 2028.
In Illinois, lawmakers reintroduced iGaming legislation in early 2026, with a proposed tax rate of 25% on adjusted gross revenue. The bills include provisions to protect retail casino jobs by preventing licenses for casinos that have reduced their workforce by more than 25% since February 2020. New York has also been active, with Senator Joseph Addabbo Jr. introducing new bills to legalize online casinos. These bills propose a high tax rate of about 30.5% on operator gross gaming revenue and are currently under committee review. Maryland is considering expanding internet gambling through Senate Bill SB885, which would allow the State Lottery and Gaming Control Commission to issue licenses for internet gaming and online bingo. Proposed tax rates are steep, with up to 40% on slots and table game revenues.
Market Potential and Popular Sports Teams
The potential for a legal sports betting market in states like California is enormous. The state is home to several major professional teams, including the San Francisco 49ers, Los Angeles Rams, Los Angeles Chargers (NFL), Lakers and Warriors (NBA), and five MLB teams such as the Dodgers. These teams have large, dedicated fan bases that would likely drive high wagering interest, especially during playoffs and major sporting events. If legalized, California could quickly become one of the largest sports betting markets in the country, rivaling established markets like New Jersey and Pennsylvania.
Challenges and the Path Forward
Despite the momentum in many states, challenges remain for those seeking to legalize online sports betting. In California, any future legalization efforts will require voter approval through a statewide ballot measure. The earliest realistic opportunity for a new measure is likely the general election cycle in or after 2026. Success will depend on cooperation between tribal leaders and commercial sportsbook operators to avoid the conflicts that doomed previous efforts. In other states, debates over tax rates, licensing structures, and the impact on existing casinos continue to shape the legislative process.
Summary and Outlook
The push for online sports betting legalization in the United States shows no signs of slowing down. While many states have already launched legal markets, others are still navigating complex political and economic factors. California remains a key state to watch, as its eventual entry into the market could reshape the national landscape. For now, residents in states without legal sports betting can participate in alternatives like DFS, horse racing, and lottery games. As legislative sessions continue and new bills are introduced, the future of online sports betting in the U.S. will depend on the ability of stakeholders to find common ground and address concerns about regulation, taxation, and responsible gambling. The next few years will be critical in determining how and where Americans can legally place their bets online.