Five States That Recently Legalized Online Sports Betting

The legalization of sports betting in the United States has undergone a dramatic transformation since the Supreme Court's landmark decision in 2018 to overturn the Professional and Amateur Sports Protection Act (PASPA). This ruling opened the floodgates for individual states to legalize and regulate sports betting, leading to rapid expansion across the country.

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As of 2024, 38 states plus Washington D.C. have legalized sports betting in some form, with 30 of these states permitting online wagering. This expansion has led to a thriving industry, with Americans legally betting over $220 billion on sports in the five years since legalization. In 2023 alone, the legal sports betting industry generated a record $11 billion in revenue. And these numbers don’t include sites where gambling with crypto is possible, as these are usually based and licenced overseas instead of in the states themselves. Since they are based outside the US, their revenue isn’t included in official stats, but it is estimated that the crypto gambling market is currently valued at approx. $250 million, with massive future growth projected.

North Carolina: The Latest Addition

North Carolina became the most recent state to legalize online sports betting, launching on March 11, 2024. The state's approach is comprehensive, allowing for up to 11 online sportsbooks. Notably, North Carolina permits betting on college sports, a significant feature given the state's rich collegiate athletic tradition.

Eight online sportsbooks went live on launch day, offering a wide range of betting options. The state also maintains three tribal casinos with retail sportsbooks, regulated by the Cherokee Tribal Gaming Commission. This dual approach ensures both online accessibility and traditional in-person betting experiences.

The legalization process in North Carolina was not without challenges. The bill faced opposition from anti-gambling groups and some lawmakers concerned about potential social impacts. However, proponents argued that legalization would bring significant tax revenue and regulate an already existing underground market. The state expects to generate $50 million in annual tax revenue from sports betting by 2028.

Vermont: A New England Newcomer

Vermont joined the online sports betting market on January 11, 2024, following the passage of Act 63 in June 2023. The state's approach is unique, focusing solely on mobile sports wagering through phone apps, with no retail locations or lottery agent involvement.

Vermont's implementation includes strict consumer protections, such as prohibiting credit card use and wagers on Vermont collegiate sports (unless in tournaments). The state expects to earn about $7 million in the first year, potentially reaching $16-18 million within five years.

The Vermont Department of Liquor and Lottery oversees sports betting operations, ensuring compliance with state regulations. The state selected three online operators through a competitive bidding process, emphasizing responsible gaming practices and revenue potential. Vermont's model could serve as a template for other states considering a mobile-only approach.

Kentucky: Racing into the Digital Age

Kentucky, renowned for its horse racing, embraced online sports betting on September 28, 2023. The state's approach leverages its existing racing infrastructure, granting licenses to nine horse racing tracks and Kentucky Speedway.

Each racetrack has the opportunity to collaborate with a maximum of three online sports betting companies, possibly resulting in a total of 27 online sportsbooks in the state of Kentucky. The state's laws regarding sports betting are extensive, encompassing both professional and college sports, but notably omitting high school sports.

The Kentucky Horse Racing Commission regulates sports betting, ensuring integration with the state's existing pari-mutuel wagering system. This approach not only expands betting options but also aims to bolster the state's historic racing industry. Kentucky expects to generate $23 million in annual tax revenue from sports betting by 2024.

Ohio: A Midwest Powerhouse

Ohio launched its online sports betting market on January 1, 2023, becoming one of the largest markets in the country. The state's approach is notable for its wide-open market, allowing for up to 25 online sportsbooks and numerous retail locations.

Ohio's implementation included a universal start date for all operators, creating a highly competitive market from day one. The state also emphasized responsible gaming measures, including mandatory timeout periods for bettors.

The Ohio Casino Control Commission oversees sports betting, implementing strict regulations to ensure fair play and consumer protection. Ohio's market size and comprehensive approach have attracted significant investment from operators, potentially making it a bellwether for other large states considering legalization.

Massachusetts: A Long-Awaited Launch

Massachusetts entered the online sports betting arena on March 10, 2023, following a retail launch on January 31. The state's approach was methodical, with a six-member conference committee finalizing the legislation in August 2022.

Massachusetts allows betting on most college sports but prohibits wagers on in-state colleges unless they're participating in tournaments like March Madness. The state launched with six major sportsbooks.

Conclusion

The legalization of online sports betting across these five states and Washington D.C. demonstrates the diverse approaches jurisdictions are taking to implement this new form of gaming. From Vermont's mobile-only model to Kentucky's racing-centric approach, and Washington D.C.'s recent willingness to adapt its regulatory framework in response to challenges highlights the evolving nature of sports betting legislation. As the market continues to develop, these states and the nation's capital will likely serve as case studies for future legalization efforts across the country.

I (AKA CatBurg) have a lifelong passion for sports, especially football and basketball. I enjoy the thrill and excitement of sports betting and everything in between. My teams are (Packers #GoPackGo) and who I am betting on!