Sports betting in North America has changed a lot lately, and honestly, it’s a bit of a maze these days. Right now, 38 states, plus Washington D.C. and Puerto Rico, have legal sports betting in some shape or form, and 30 states offer online betting as of 2025.
This fast growth has been exciting for bettors, but it also means you really have to pay attention to the rules in your area.
Things got even more tangled after Canada legalized single-event sports betting nationwide in August 2021. Meanwhile, the U.S. is still working with a patchwork of state-by-state rules ever since the 2018 Supreme Court decision that ended the federal ban.
If you live near a border or travel a lot, you might run into some odd situations. It can feel a bit like a moving target.
It’s crucial to understand these regional differences before you place a bet. Everything from which sports you can wager on, to taxes, to cross-border betting restrictions can change depending on where you are, and federal laws still cast a shadow over the whole scene.
Key Changes in North American Sports Betting Laws for 2025
North Carolina jumped into online sports betting in March 2024, making it the 30th state with mobile wagering.
New federal laws are starting to touch on affordability and advertising, while some states are cranking up taxes and tweaking their rules.
Recent Legal Milestones Impacting Bettors
The SAFE Bet Act showed up in late 2024 as a pretty big deal in federal sports betting legislation. Representatives Paul Tonko and Senator Richard Blumenthal are behind it.
This bill is all about affordability checks, clamping down on advertising, and even how AI is used on betting platforms. Oh, and if you like college sports prop betting, that would be off the table under this act.
Missouri voters will have their say on sports betting legalization in November. The measure made the ballot after a whopping 340,000 signatures—twice what was needed.
Illinois Governor J.B. Pritzker signed a 2025 budget with higher sports betting taxes. That means all legal operators in the state are feeling the pinch.
North Carolina’s HB 967 tried to ban college player prop bets but didn’t make it through the session. There’s definitely a growing focus on student-athlete betting protections.
Expansion of Regulated Markets
Right now, 38 states plus Washington DC and Puerto Rico have legal sports betting in some format. Thirty states let you bet online via apps or websites.
A few states are on the cusp for 2025:
- Texas: The House passed a bill, but the Senate still needs to act when they’re back in session.
- Georgia: Bills made it through the Senate, but things stalled in the House.
- Alabama: Sports betting keeps coming up, even though the Senate hasn’t played ball yet.
- California: Tribal gaming groups are calling the shots on mobile betting’s future.
Nebraska might move from retail-only to online betting if new constitutional amendments get the green light.
Mississippi still limits mobile betting to casinos. Statewide mobile proposals passed the House but fizzled out in the Senate.
Delaware’s HB 365 aimed to open up online betting beyond BetRivers, but lawmakers shelved it for now.
Implications for the Sports Betting Industry
The industry’s feeling the heat from more regulations and higher costs. Illinois raising taxes could be the start of a bigger trend, honestly.
Twenty-five jurisdictions ban athletes and related folks from betting, and four states even put penalties on the bettors themselves.
If the SAFE Bet Act passes, federal rules could start to smooth out some of the differences between states. The market’s also got to grapple with affordability checks and new AI guidelines.
College sports betting is tightening up, especially on player prop bets. There’s a lot of talk about protecting student-athletes and keeping games fair.
Expansion is slowing down, mostly because the last holdout states have complicated politics. Tribal gaming compacts and other stakeholders make things tricky in places like California and Oklahoma.
More laws now include responsible gambling and age verification. Operators have to juggle growing the market with staying on the right side of the rules.
Federal Gambling Laws and Their Influence
Three big federal laws shape sports betting here: PASPA (which is gone now), the Federal Wire Act, and the UIGEA. These set the ground rules for what states and betting operators can do.
PASPA and Its Repeal
The Professional and Amateur Sports Protection Act, or PASPA, came in 1992 and basically banned sports betting almost everywhere. Only Nevada, Oregon, Montana, and Delaware got a pass.
For 46 states, PASPA was a dead end for sports betting laws. The goal was to protect sports integrity and curb gambling.
Then, in 2018, the Supreme Court tossed PASPA in Murphy v. NCAA. New Jersey led the charge, arguing that states should make their own calls.
What changed after PASPA?
- States can now legalize sports betting if they want.
- Every state sets its own rules.
- Over 30 states have jumped on board since 2018.
- Suddenly, mobile betting apps were everywhere.
Power shifted from the feds to the states, which is why we’ve got this patchwork situation now.
Federal Wire Act Overview
The Federal Wire Act is from way back in 1961. It was aimed at stopping organized crime from running gambling rings over the phone.
It mainly hits sports betting across state lines, making it illegal for operators to take out-of-state bets by phone or internet.
In 2011, the DOJ clarified that the Wire Act only covers sports betting, not things like online poker or casino games.
Wire Act means:
- No cross-state sports betting transactions.
- No using wire communications for sports bets.
- No interstate gambling operations.
That’s why you have to be physically in the state to bet. Operators rely on geolocation tech to make sure.
Understanding the UIGEA
The Unlawful Internet Gambling Enforcement Act came along in 2006. The UIGEA mostly targets banks, not individual bettors.
It tells banks not to process payments to illegal gambling sites and asks them to block those transactions.
UIGEA itself doesn’t make online gambling illegal. Instead, it tries to choke off the money to unlicensed operators.
UIGEA basics:
- Banks block payments to illegal gambling sites.
- Financial institutions need compliance programs.
- Licensed operators are exempt.
- Regular bettors aren’t directly penalized.
This law is why licensed sportsbooks can handle payments just fine, but shady sites can’t.
Interplay Between Federal and State Regulations
Federal laws lay down the basics, and then states add their own twists on top.
The Wire Act keeps betting within state lines, so you don’t see states sharing betting pools much. Each state usually runs its own market.
States have to make sure their laws don’t clash with federal ones. That means following UIGEA for banking and the Wire Act for bet locations.
Where feds and states overlap:
- Banking/payment compliance.
- Interstate compact talks.
- Tribal gaming agreements.
- Tax reporting.
Some states have interstate poker compacts, but sports betting compacts are rare. And you need federal approval for those, anyway.
The federal government still keeps an eye on things like money laundering and taxes, while states handle licensing and the daily grind.
State-By-State and Provincial Sports Betting Rules
Sports betting laws are all over the place in North America. As of 2025, 38 U.S. states and Washington D.C. have legalized some kind of sports wagering.
Canada does things differently, with each province in charge of its own gambling laws and betting setups.
Overview of U.S. Legal Sports Betting States
The sports betting scene in the U.S. flipped after the Supreme Court tossed out the federal ban in 2018. Since then, states have been rolling out their own rules.
Types of Legal Sports Betting:
- Full Legal: Online and retail betting are both allowed.
- Retail Only: You have to bet in person at a casino or sportsbook.
- Pending: Laws are passed, but betting isn’t live yet.
- Prohibited: No legal betting at all.
Right now, 38 states plus Washington D.C. are in the game. States like New Jersey, Pennsylvania, and New York are leading in revenue.
Most places require you to be 21 to bet. Some ban betting on in-state college teams. Mobile betting is hit or miss—some states make you sign up in person first.
Regional quirks:
- Northeast: Usually allows both online and retail.
- Southeast: Some states are retail-only.
- West Coast: California’s still a no-go, even though it’s a huge market.
Canada’s Provincial Approaches
Canada took a different route. The federal government allowed single-game sports betting in 2021, but each province decides how to run things.
Every province sets its own gambling and sports betting rules. Ontario launched regulated online betting in April 2022, while most others stick with government-run sites.
How provinces stack up:
- Ontario: Full online and retail betting.
- British Columbia: Government-run online platform only.
- Quebec: Betting controlled by the provincial lottery.
- Alberta: Limited options with the government operator.
Age limits range from 18 to 19, depending on the province. Most provinces keep advertising in check and require responsible gambling steps.
Ontario allows private operators to get licensed, but the rest mostly stick with government monopolies.
Pending Legislation and Potential Expansion
A few states are still debating sports betting laws in 2025. Idaho, Utah, and Hawaii are holding out against gambling.
States with bills in play:
- Georgia has a bunch of proposals on the table.
- Missouri lawmakers are still arguing about it.
- Texas is looking at limited options.
Some states with legal betting are working to expand what they already have. That could mean new bet types or loosening rules on college sports.
Trends to watch:
- More states eyeing online betting.
- Lower tax rates to keep up with neighbors.
- Easier licensing for operators.
California is still the big fish that got away. Past ballot measures failed, but new ones could pop up. With its size, the industry is definitely watching closely.
Types of Legal Sports Betting and Access Methods
Sports betting in North America happens in three main ways: at physical locations, on desktop websites, and through smartphone apps. Each one has its perks and follows different state rules.
Brick-and-Mortar Sportsbooks
Physical sportsbooks are found in casinos, racetracks, and other betting spots in legal states. You can walk in, talk to staff, and place your bets in person.
A lot of folks like these places for bigger bets or when things get complicated. Staff can help explain odds and walk you through your options.
What you get:
- Pay and get paid in cash.
- Instant payouts.
- Staff ready to help out.
- A lively, social vibe—especially during big games.
These spots are usually packed for major events, with big screens and comfy seating.
Some states only allow in-person betting. Others make you sign up for online accounts at a physical location first.
Online Sports Betting Platforms
Desktop websites let you bet from your computer through licensed operators. There’s usually a wider range of betting markets and more stats to dig through.
Online platforms often offer more choices than brick-and-mortar spots. You can check live odds, past stats, and use advanced betting tools.
Popular features:
- Live betting during games.
- Detailed stats and analysis.
- Lots of payment options.
- Track your betting history.
You’ll need to verify your account before you can cash out, which usually means uploading some ID and proof of address.
Thirty states currently let you use online betting platforms. Each state has its own licensing rules and approved lists of operators.
Mobile Sports Wagering
Smartphone apps are easily the fastest-growing part of legal sports betting right now. They basically do everything desktop sites can, but they’re just so much more convenient.
Mobile betting lets users wager from anywhere inside state lines. GPS tech keeps things legal by tracking your location.
Mobile App Advantages:
- Instant notifications when bets settle
- Touch ID and biometric login for extra security
- Push alerts for promos (sometimes too many, honestly)
- Fast deposit and withdrawal options
Most mobile apps even have live streaming for some events. You can watch and bet on the same platform, which is kind of wild.
App-based betting now makes up most of the total sports betting handle in legal states. Convenience is a huge reason people bet more often on apps than anywhere else.
Offshore Sportsbooks and Legal Alternatives
Offshore sportsbooks run outside U.S. jurisdiction, usually in places like Costa Rica or Curacao. That creates some serious legal gray zones for Americans. Meanwhile, regulated sports betting has spread to 38 states as of 2025, so there are safer, protected options.
Legality and Risks of Offshore Operators
Offshore sportsbooks operate in a weird legal space under U.S. law. The Unlawful Internet Gambling Enforcement Act (UIGEA) doesn’t actually ban Americans from betting, but it does make it tough for banks to process payments to illegal operators.
Key Legal Risks:
- Possible prosecution under federal or state gambling laws
- Banking issues if your bank blocks gambling transactions
- Fifteen states plus Washington D.C. have outright banned certain offshore books
A lot of bettors are confused about legality. Studies say 52% of offshore users wrongly think these sites are legal in the U.S.
Then there are the financial risks. You might get your account frozen, have withdrawals delayed, or even get your winnings denied—and there’s no regulator to help. Banks can flag your account if they spot offshore gambling activity, which can mess with your regular banking too.
No regulatory oversight means no real consumer protections. If you have a dispute with an unlicensed operator, good luck getting your money back.
Comparison of Domestic and Offshore Options
Regulated Sportsbooks:
- Licensed and regularly audited by state gaming commissions
- Consumer protection and dispute resolution systems
- Responsible gambling controls and self-exclusion
- Fast payments and guaranteed payouts
Offshore Sportsbooks:
- Not subject to U.S. regulation at all
- Sometimes offer more exotic bets and credit wagering (no deposit required)
- Anonymity for unreported winnings, but that’s a tax risk
Platforms like DraftKings and FanDuel are transparent and accountable, which you just don’t get from offshore sites. Licensed operators also pay taxes, which help fund local programs and protections.
Offshore sportsbooks might have more betting options, but they don’t guarantee your money is safe. No security standards, no mandatory protections.
States like California and Texas still don’t have legal sports betting, so people there often turn to offshore sites anyway, despite the risks.
Consumer Protections and Payment Regulations
Regulated sports betting comes with a lot of consumer protections, thanks to strict state oversight. Licensed operators get audited by third parties to make sure user data is safe and funds are handled correctly.
Protection Features:
- Data Security: Rules in place to prevent identity theft and data breaches
- Payment Assurance: Withdrawals are guaranteed by state regulations
- Dispute Resolution: Formal channels to fight fraudulent practices
- Addiction Support: Required responsible gambling programs
Payment rules are a big difference between legal and offshore platforms. Legal sportsbooks accept regular credit cards and bank transfers. Offshore books usually want crypto or weird payment methods.
The UIGEA makes it risky for banks to process payments for illegal gambling, so your account could get frozen if you use offshore sites. That’s a headache nobody wants.
Licensed sportsbooks have legitimate ways to resolve disputes. Offshore books? Not so much. If something goes wrong, you’re on your own.
Cross-Border Considerations for U.S. and Canadian Bettors
The regulatory landscape is really different for U.S. and Canadian bettors, especially if you’re crossing the border. Each country has its own set of gambling laws, and that can make things complicated for anyone trying to bet across borders.
Divergence in Regulatory Approaches
The U.S. and Canada have gone in totally different directions with sports betting regulations. In the U.S., every state has its own rules. Some allow online betting statewide, some only at casinos.
Over 30 U.S. states now have legal sports betting, but the restrictions are all over the map. Some states keep it online, others force you to bet in person.
Canada uses a provincial system. Since August 2021, single-game betting has been legal across the country, replacing the old parlay-only rules.
Key regulatory differences:
- Operator licensing: U.S. states usually let private companies operate, but many Canadian provinces keep it government-run
- Tax structures: U.S. tax rates can be as low as 6.75% or up over 50%, while Canadian rates vary by province
- Cross-border restrictions: The Wire Act blocks U.S. operators from taking out-of-state bets, including from Canadians
Basically, you can’t legally use a betting platform licensed in the other country. Americans can’t use Canadian betting sites, and Canadians can’t access U.S. sites from home.
Traveling and Placing Bets Across Borders
Where you are physically determines if you can bet, not your citizenship. If you’re in a place where betting is legal, you can bet there—even if you’re just visiting.
So, Canadians visiting U.S. states with legal sports betting can place bets at licensed books while they’re there. Americans visiting Canada can access local betting options during their trip.
Important travel considerations:
- Geolocation tech is strict—your IP and GPS are tracked for compliance
- Account restrictions might apply if the platform requires residency
- Withdrawal limitations can make it tricky to get your winnings after you leave
People living near the border sometimes cross over to get better odds or access markets not available at home. But using VPNs to fake your location breaks the rules and could get you banned—or worse.
Starting April 2025, new U.S. rules say Canadian visitors staying more than 30 days have to register with USCIS. That’s going to affect cross-border bettors who spend a lot of time in the States.
Future Trends in North American Sports Betting Regulations
The sports betting industry is in for some big regulatory changes. Experts think as many as 45 states will have legal sports betting by 2025. New federal laws and cross-border opportunities are going to shake things up for both operators and bettors.
Emerging Legislative Initiatives
Several big sports betting bills are making their way through Congress and state legislatures. The SAFE Bet Act, introduced in September 2024, could change the whole industry.
This bill has some pretty strict consumer protection rules. Operators would have to cap deposits at five per day. Any bet over $1,000? You’d need to pass an affordability check.
Key SAFE Bet Act provisions:
- No ads during live games
- Mandatory self-exclusion in every state
- Better systems to spot problem gambling
- Standardized age verification everywhere
States are still building out their own sports betting rules. Missouri is set to launch in summer 2025, with a 10% tax rate and $5 million a year for problem gambling programs.
Georgia and Alabama are talking about letting voters decide on sports betting with constitutional amendments. It’s up to the people in those states.
The big focus is on consumer protection. New rules are pushing for stronger ID checks and better geolocation for mobile betting platforms.
Potential for Interstate and Interprovincial Markets
Right now, federal law—specifically the Wire Act—basically blocks interstate wagering. That means every state is stuck running its own separate sports betting market with its own set of licensed operators.
But is that really the way things will stay? Most industry experts seem to think not. As the sports betting scene grows up, there’s talk of multi-state compacts that could bring shared liquidity pools and, honestly, much bigger prize offerings.
Benefits of interstate markets:
- Larger betting pools and better odds
- Reduced operational costs for operators
- Streamlined regulations across state lines
- Enhanced player protection programs
Canada’s a bit of a wildcard here, too. Since single-game sports betting went legal across the country in 2021, provincial operators have started eyeing cross-border partnerships. There’s real potential for alliances with U.S. companies.
On the tech side, companies are hustling to get ready for interstate expansion. They’re building systems that can juggle multiple state regulations at once—a pretty tall order, if you ask me.
The American Gaming Association is all in on payment systems that work across state boundaries. Imagine being able to place bets seamlessly while traveling between legal states—sounds convenient, doesn’t it?
A handful of states are already chatting about regional compacts. These would let them build bigger markets, though each state would still keep a close eye on its own sports betting rules.
