As of 2026, legal sports betting is live in 38 states plus Washington D.C. — but the rules, available apps, and tax obligations vary significantly by jurisdiction.
The post-PASPA landscape has changed faster than most bettors can track. Here's where things stand state by state in 2026.
States With Full Online Sports Betting
The following states have active, legal online sports betting as of early 2026: Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wyoming, and several others. These states allow mobile wagering with licensed operators like DraftKings, FanDuel, BetMGM, Caesars, and ESPN Bet.
New York remains the largest legal market by handle, regularly recording over $1.5 billion in monthly wagers. New Jersey, which was the first post-PASPA state, remains a top-five market.
States With In-Person Only or Limited Access
A handful of states — including Mississippi and Montana — permit sports betting only at physical retail locations. Others, like New Hampshire, operate through a single-vendor state lottery model. These markets are active but offer fewer options and lower betting limits than competitive multi-operator states.
States Where It Remains Illegal
As of 2026, sports betting remains fully prohibited in California, Texas, and Florida — three of the largest potential markets in the country. California voters rejected two competing ballot measures in 2022, and subsequent legislative efforts have stalled. Texas and Florida face ongoing legal and political obstacles, though both are expected to eventually legalize.
Taxes and Responsible Reporting
Regardless of your state, sports betting winnings are federally taxable income in the United States. Sportsbooks issue W-2G forms for winnings above $600 at odds of 300-1 or greater. Keeping detailed records of all bets, wins, and losses is essential for accurate tax reporting.
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