Overview of Online Sports Betting Legalization in the United States
The landscape of online sports betting in the United States is changing quickly. Since the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) in 2018, more states have moved to legalize sports betting. Today, both lawmakers and the public are debating the best ways to regulate and tax this growing industry. The push for legalization is driven by strong public interest, the promise of new tax revenue, and the desire to keep betting dollars within state borders. However, each state faces its own challenges and timeline for launching legal online sportsbooks. The result is a patchwork of laws and regulations that reflect local values and economic priorities.
Texas: A State on the Brink of Change
Texas is one of the largest states without legal sports betting. Currently, there are no legal land-based or online sportsbooks operating within Texas. Many Texans travel to neighboring states like Louisiana to place bets at physical sportsbooks, or they use offshore online platforms such as BetWhale, BetUS, BetOnline, Bovada, and EveryGame. The state legislature is now considering House Joint Resolution 134, which could allow voters to decide on legalizing sports betting. This bill, filed by State Representative Sam Harless, focuses on retail (in-person) sports betting and leaves out online betting for now. If passed, only existing professional sports teams, PGA Tour events, and racetracks would be eligible for licenses.
Governor Greg Abbott has shown some support for online sports betting, and public interest is high. However, political barriers remain, especially from Lieutenant Governor Dan Patrick, who has not agreed to move the bill forward without strong Republican support. Even if voters approve the measure in November, the earliest launch date for legal sports betting in Texas is likely 2027, due to the state’s legislative schedule. The debate in Texas highlights key arguments for legalization, such as increased tax revenue, job creation, and consumer protection, as well as concerns about gambling addiction and social impact. The outcome in Texas could influence other large states still considering legalization.
Missouri: Legalization Achieved, Launch Delayed
Missouri became the 39th state to legalize sports betting after a successful ballot initiative in 2024. Both retail and online sports betting are now legal, but the launch has been delayed due to regulatory processes. The law requires sports betting to be operational by December 1, but emergency enactment was blocked, pushing the effective date to August 30. Only after this date can regulators begin approving up to 19 retail and 23 online licenses. This means that betting will not be live for the start of the football season, but all licenses will be awarded at the same time.
Missouri’s law allows for both statewide online betting and retail sportsbooks near professional sports stadiums. Major brands like DraftKings, FanDuel, Caesars, and BetMGM are expected to enter the market. The law also sets a 10% tax on wagering revenue, with funds going toward education and compulsive gambling prevention. The legalization effort was led by Missouri’s professional sports teams and supported by a strong public campaign. However, opposition from some casino operators focused on concerns about out-of-state companies dominating the market. The Missouri experience shows how public support and industry partnerships can drive legalization, even when there are delays in implementation.
Mississippi: Moving Toward Mobile Sports Betting
Mississippi has long been a hub for casino gambling, but sports betting has been limited to in-person wagers at licensed casinos since 2018. Now, the state is advancing a bill to legalize mobile sports betting, which would allow residents to place bets online from anywhere within state borders. This move aims to modernize the state’s gambling industry and capture revenue currently lost to offshore sites or neighboring states.
If the bill passes, Mississippi could see an estimated $80 million in new annual revenue, which could be used for education and infrastructure. The bill is currently under review by legislative committees, and supporters are optimistic that legal online sportsbooks could launch as early as 2025. The shift to mobile betting would bring Mississippi in line with national trends and boost its economic competitiveness. The state’s experience highlights the importance of adapting to changing consumer preferences and technology.
National Trends and the Road Ahead
Across the country, the trend is clear: more states are moving to legalize online sports betting. States like New Jersey, Pennsylvania, and Michigan have already seen strong revenue growth from legal online sportsbooks. The main drivers for legalization include public demand, the need for new tax revenue, and the desire to regulate an activity that is already happening through offshore sites.
However, the path to legalization is not the same everywhere. Some states, like Texas, face political and social hurdles that slow progress. Others, like Missouri, have passed laws but must still build regulatory frameworks before launching. In Mississippi, the focus is on expanding from in-person to mobile betting. Each state must balance economic benefits with concerns about gambling addiction and the social impact of expanded betting. The national conversation continues as lawmakers, industry leaders, and the public weigh the pros and cons of legal sports betting.
Conclusion: A Rapidly Evolving Market
The online sports betting market in the United States is evolving quickly. While some states have fully embraced legal online sportsbooks, others are still debating the best path forward. The next few years will be critical as more states consider legalization, set up regulatory systems, and launch new betting platforms. For now, bettors in states without legal options continue to use offshore sites or travel to neighboring states. As public support grows and lawmakers see the benefits, it is likely that more states will join the legal sports betting market soon. The future of online sports betting in the USA looks bright, but the journey is far from over.