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Legal sports betting has expanded to 39 states and Washington, D.C., eight years after the Supreme Court struck down PASPA, according to Focus Gaming News | Latest Gambling Industry News & Updates. Its October 2026 retrospective places West Virginia among the early adopters and examines the industry’s continuing competition with illegal bookmakers and offshore sportsbooks.
West Virginia launched sports betting on Aug. 30, 2018, following launches in Delaware, New Jersey and Mississippi that summer.
From PASPA to state-regulated betting
The Supreme Court’s May 14, 2018, decision in Murphy v. NCAA struck down PASPA’s prohibition on state authorization of sports betting, finding that it violated the anticommandeering rule. The ruling cleared the way for states to establish their own regulated markets.
As of October 2026, 33 states offer online sports betting, according to the retrospective. Eleven states have yet to authorize sports wagering in any form.
States have adopted different structures, including retail-only, online-only, tribal and lottery-based markets. Tennessee established an online market without commercial casinos, while New Hampshire operates through its state lottery and a contracted sportsbook partner.
Revenue growth and competition with illegal sportsbooks
The report cites 2025 US sports betting revenue of $16.96 billion, up 22.8% year over year, on $166.94 billion in wagers. State-regulated sportsbooks generated $3.71 billion in taxes, a 32.4% increase.
An American Gaming Association analysis estimated that Americans wagered $84 billion with illegal bookmakers and offshore sportsbooks. The illegal share of the total sports betting market fell from 36% in 2022 to 24% in the comparison cited by the association.
The retrospective also examines how tax and licensing policy affect legal operators’ ability to compete. New York taxes online sports betting revenue at 51%, while Illinois uses a progressive framework that includes a per-wager fee component.
Sports Betting Alliance executive Joe Maloney advocated balancing state revenue needs with market competitiveness. He told the outlet: “States should focus on building competitive and sustainable legal markets with reasonable tax rates, efficient licensing structures, strong consumer protections, and robust enforcement against illegal operators.”
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Source: As reported by Focus Gaming News | Latest Gambling Industry News & Updates.
