Gambling In The United States

Contents

1. Overview
2. Etymology
3. Cultural Impact

This article is part of a series on the Economy of the United States .

Economy by state

State statistics

Economy by city or county

Employment

The casino floor at Wynn Las Vegas in Paradise , Nevada

In the United States , the pursuit of quick fortunes through gambling is, predictably, a rather complex affair, subjected to a labyrinthine array of legal restrictions that vary wildly from one jurisdiction to the next. It’s almost as if human nature, with its insatiable appetite for risk and reward, clashes perpetually with the desire for order and control.

A pivotal shift in this ongoing saga occurred in 2018, when the United States Supreme Court delivered a ruling that, to no one’s real surprise, dismantled a federal ban on sports gambling . This landmark decision, detailed in Murphy v. National Collegiate Athletic Association , effectively tossed the ball back into the states’ courts, allowing them to regulate sports betting as they saw fit. And regulate they did. In the subsequent years, a cascade of states, eager for new revenue streams, moved to legalize sports gambling. This legislative frenzy has predictably propelled the sports gambling industry to unprecedented heights, shattering revenue records year after year. Consequently, sports gambling has now become an omnipresent fixture in sports coverage, an inescapable hum in the background of every game, much like the low-level hum of existential dread that accompanies most modern entertainment.

The sheer scale of this industry is, if nothing else, a testament to human optimism, or perhaps delusion. The American Gaming Association (AGA), a rather influential trade group representing commercial gambling interests, reported a staggering $66.6 billion in revenue for 2023. This figure, mind you, represents the net gain—the difference between the colossal sums wagered and the amounts paid out to the (comparatively few) winners. This economic engine also contributed a not-insignificant $14 billion in state and local taxes, a sum that no doubt appeases many a budget-strapped legislator. Concurrently, the National Indian Gaming Commission revealed that Native American gaming operations, a distinct and often politically charged segment of the market, generated $41.9 billion in revenue for the same year.

Of course, no enterprise that extracts billions from the public can escape scrutiny. Critics of gambling are quick to highlight its less glamorous outcomes, arguing that its proliferation often leads to increased political corruption , a rise in the debilitating affliction of compulsive gambling , higher crime rates, and even an uptick in suicide rates. Others, with a more economic bent, contend that gambling functions as a particularly insidious regressive tax , disproportionately affecting individuals in the local economies where gambling venues are strategically placed. More recently, as sports betting has permeated the very fabric of athletic competition, critics have voiced concerns that it has adversely affected the integrity and enjoyment of sports themselves, transforming athletic contests into mere vehicles for wagers, which, honestly, seems like a perfectly natural evolution for anything humans touch.

History

Main article: History of gambling in the United States

The story of gambling in the United States is, like most human histories, a cyclical narrative of prohibition, clandestine activity, and eventual, often reluctant, legalization, usually driven by the siren song of tax revenue. From the earliest colonial days, various forms of wagering were present, sometimes tolerated, sometimes condemned, always persistent. It seems the human desire to test fate, or perhaps simply to escape the mundane, is a constant, regardless of the prevailing moral climate or legal statutes.

Authorized types

Governments, in their eternal quest for funds without the unpopularity of direct taxation, have, over time, authorized a diverse array of gambling forms. This spectrum ranges from the seemingly innocuous bingo games held in church basements—a quaint relic, perhaps, of a simpler time—to the dazzling, high-stakes, multimillion-dollar poker tournaments that dominate the modern casino landscape. States, ever the marketers, sometimes even advertise that revenues from specific games are earmarked for particular, often noble, causes, such as education, creating a convenient moral veneer for what is, at its core, a transaction based on chance.

A significant shift in American social policy, a crack in the puritanical façade, appeared in 1963 when New Hampshire dared to authorize a state lottery . This was a truly unprecedented move; prior to this, no state government had directly involved itself in running gambling operations to generate revenue. The success, or at least the undeniable fiscal appeal, of New Hampshire’s venture proved contagious. Other states, observing the flow of cash, quickly followed suit. Today, the vast majority of states operate some form of lottery, channeling funds into state operations. While some states wisely restrict these revenues to specific expenditures, often education-focused—a transparent attempt to justify the means—others simply dump lottery proceeds into general government funds, where they disappear into the bureaucratic ether. This practice has, quite predictably, led to ethically dubious issues, such as states engaging sophisticated marketing firms to aggressively expand their market share or to conjure up new, more enticing gambling programs when older forms inevitably fail to extract sufficient funds from the public. It’s a constant arms race against diminishing returns, funded by the hopeful and the desperate.

The American Gaming Association , in its pragmatic classification of human vice, delineates gambling into several primary categories:

Card rooms , which encompass both the public establishments where games of skill and chance unfold and the more exclusive private clubs.
Commercial casinos , the glittering behemoths designed to separate you from your money with maximum efficiency and theatrical flair.
Charitable games and Bingo , the softer, more community-oriented side of gambling, often with a thin veneer of beneficence.
Tribal casinos , a significant and distinct segment operating on sovereign Native American lands.
Legal bookmaking , the increasingly prevalent practice of wagering on athletic contests, now a national pastime.
Lotteries , the classic game of chance, offering the tantalizing, if statistically improbable, dream of instant wealth.
Parimutuel wagering , primarily associated with horse racing and dog racing , where winnings are pooled and distributed among winners.
Advance-deposit wagering , a modern iteration allowing bets to be placed remotely, often for horse racing.

Legality

While the federal government, in its infinite wisdom, generally permits gambling under U.S. federal law , the reality on the ground is far more fragmented. Significant restrictions, particularly concerning interstate and online gambling , mean that each state retains the sovereign right to regulate, or outright prohibit, the practice within its own borders. This creates a patchwork of legality that is as bewildering as it is predictable, catering to local moral sentiments and economic ambitions.

For decades, the Professional and Amateur Sports Protection Act of 1992 (PASPA) served as a federal straitjacket, effectively outlawing sports betting across the nation, with a few grandfathered exceptions. These exceptions included the established sports lotteries in Oregon , Delaware , and Montana , as well as the licensed sports pools in Nevada , which, let’s be honest, has always existed in its own unique legal dimension. However, this federal overreach was dramatically curtailed on May 14, 2018, when the United States Supreme Court , in the aforementioned Murphy v. National Collegiate Athletic Association decision, declared the entire law unconstitutional. This ruling, citing a conflict with the Tenth Amendment to the United States Constitution (which, frankly, I’m surprised anyone still remembers), effectively opened the floodgates for states to legalize sports betting.

As of now, if one includes state-run lotteries, a remarkable 48 states permit some form of gambling. The perennial holdouts, clinging to their moral high ground, are Hawaii , where gambling was banned even before statehood, and Utah , a state with a significant Latter-day Saint majority population, where a constitutional ban on gambling remains firmly entrenched. One almost has to admire their stubbornness, or perhaps their resistance to temptation.

However, the widespread availability of full-blown casino-style gambling is a much rarer phenomenon. Federal law does, conveniently, provide an avenue for Native American Trust Land to be utilized for games of chance, provided a formal agreement—a “Compact” or “Agreement”—is established between the state and the tribal government. This framework was codified under the Indian Gaming Regulatory Act of 1988, acknowledging the sovereign status of tribes while still allowing states a degree of regulatory influence.

By 2023, only Louisiana and Nevada stood as the sole states where casino-style gambling enjoyed statewide legality, though even there, state and local governments impose a predictable array of licensing and zoning restrictions. In all other states that permit such gaming, it is typically confined to geographically limited areas, such as the once-fading, now-resurgent Atlantic City, New Jersey , or the charmingly anachronistic Deadwood, South Dakota . Alternatively, these operations are restricted to American Indian reservations , some of which, by sheer luck or strategic planning, happen to be situated conveniently near major urban centers. The only remaining US states that steadfastly resist the allure of casinos are Hawaii , Utah , Georgia , and South Carolina .

As domestic dependent nations, American Indian tribes have shrewdly leveraged their legal protections to open casinos, a move that has frequently ignited contentious political debates, particularly in states like California , where the economic stakes are incredibly high. In some states, a peculiar workaround for casino legality has been the restriction of operations to “riverboats "—large, multi-story barges permanently moored in a body of water, a rather transparent attempt to bypass land-based prohibitions, proving that where there’s a will (and a dollar), there’s a way.

Online gambling , the digital frontier of vice, has faced an even more stringent regulatory gauntlet. The antiquated Federal Wire Act of 1961, originally designed to combat interstate sports wagering by telephone, did not explicitly address other forms of gambling, leading to decades of legal ambiguity and numerous court cases attempting to interpret its scope in the digital age. Then came the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), a piece of legislation that, rather than outright banning online gambling, opted for a more circuitous route: it outlawed the financial transactions involved in funding online gambling service providers. This legislative maneuver caused a significant shake-up, prompting some offshore gambling operators to cease servicing US customers, while others, ever resourceful, continued to find ingenious ways to circumvent UIGEA, demonstrating the futility of trying to legislate away human desire, especially when it’s just a click away. Consequently, UIGEA has drawn considerable criticism from prominent figures within the gambling industry, who, perhaps unsurprisingly, prefer a more direct and profitable regulatory framework.

In a testament to the ceaseless legislative churn, May 2025 saw reports of Ohio lawmakers actively debating Senate Bill 197. This proposed legislation aims to legalize online casino gambling and internet lottery gaming within the state, allowing Ohioans aged 21 and over the dubious privilege of playing games like slots and blackjack directly on their phones. The bill, ever mindful of the state’s coffers, proposes that a substantial 99% of the resulting tax revenue from online gambling would flow into the state’s general fund, with a meager 1% allocated to problem gambling programs. This initiative is projected to generate millions in new revenue, conveniently earmarked for “priorities” such as education and child care—a familiar narrative, indeed.

Adding another layer to this intricate legal tapestry, in August 2025, all 50 state attorneys general collectively signed a letter. This rather dramatic missive implored the US Attorney General to “address the rampant spread of illegal offshore gaming operations” across the United States . The letter rather sternly insists that the Department of Justice (DOJ) should utilize its considerable authority to dismantle the financial infrastructure that supports these illicit offshore gaming operations, highlighting the perpetual cat-and-mouse game between regulators and those who seek to profit outside the established, taxable frameworks.

Legality of gambling types in U.S. states and territories (commercial, racetrack casinos, etc.)

The following table provides a comprehensive, if somewhat depressing, overview of the various gambling types permitted across the U.S. states and territories, illustrating the fragmented and often contradictory legal landscape.

State/district/territory	Charitable	Pari-mutuel	Lotteries	Video Lottery	Commercial	Racetrack	Online	Sports betting
Alabama	Yes	Yes	No	No	No	No	No	No
Alaska	Yes	No	No	No	No	No	No	No
American Samoa	Yes	No	No	No	No	No	No	No
Arizona	Yes	Yes	Yes	No	No	No	No	Yes
Arkansas	Yes	Yes	Yes	No	Yes	Yes	No	Yes
California	Yes	Yes	Yes	No	No	Yes	No	No
Colorado	Yes	Yes	Yes	No	Yes	Yes	No	Yes
Connecticut	Yes	No	Yes	No	No	No	Yes	Yes
Delaware	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
District of Columbia	Yes	No	Yes	No	No	No	No	Yes
Florida	Yes	Yes	Yes	No	No	Yes	Yes	Yes
Georgia	Yes	No	Yes	No	No	No	No	No
Guam	Yes	No	Yes	No	No	No	No	No
Hawaii	No	No	No	No	No	No	No	No
Idaho	Yes	Yes	Yes	No	No	No	No	No
Illinois	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Indiana	Yes	Yes	Yes	No	Yes	Yes	Yes	Yes
Iowa	Yes	Yes	Yes	No	Yes	Yes	Yes	Yes
Kansas	Yes	Yes	Yes	No	No	No	No	Yes
Kentucky	Yes	Yes	Yes	No	No	Yes	Yes	Yes
Louisiana	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Maine	Yes	Yes	Yes	No	Yes	Yes	No	Yes
Maryland	Yes	Yes	Yes	Yes	Yes	Yes	No	Yes
Massachusetts	Yes	Yes	Yes	No	Yes	Yes	No	Yes
Michigan	Yes	Yes	Yes	No	Yes	Yes	Yes	Yes
Minnesota	Yes	Yes	Yes	No	No	Yes	No	No
Mississippi	Yes	No	Yes	No	Yes	No	No	Yes
Missouri	Yes	No	Yes	No	Yes	No	No	No
Montana	Yes	Yes	Yes	Yes	No	No	No	Yes
Nebraska	Yes	Yes	Yes	No	Yes	Yes	No	Yes
Nevada	Yes	Yes	No	No	Yes	No	Yes	Yes
New Hampshire	Yes	Yes	Yes	No	No	No	Yes	Yes
New Jersey	Yes	Yes	Yes	No	Yes	Yes	Yes	Yes
New Mexico	Yes	Yes	Yes	No	No	Yes	No	Yes
New York	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
North Carolina	Yes	No	Yes	No	No	No	No	Yes
North Dakota	Yes	Yes	Yes	No	No	Yes	No	Yes
Northern Mariana Islands	Yes	No	Yes	No	Yes	No	No	No
Ohio	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Oklahoma	Yes	Yes	Yes	No	No	Yes	No	No
Oregon	Yes	Yes	Yes	Yes	No	No	No	Yes
Pennsylvania	Yes	Yes	Yes	No	Yes	Yes	Yes	Yes
Puerto Rico	Yes	Yes	Yes	No	Yes	Yes	No	Yes
Rhode Island	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
South Carolina	No	No	Yes	No	No	No	No	No
South Dakota	Yes	Yes	Yes	Yes	Yes	No	No	Yes
Tennessee	No	No	Yes	No	No	No	No	Yes
Texas	Yes	Yes	Yes	No	No	No	No	No
U.S. Virgin Islands	Yes	Yes	Yes	No	Yes	Yes	No	No
Utah	No	No	No	No	No	No	No	No
Vermont	Yes	No	Yes	No	No	No	No	No
Virginia	Yes	Yes	Yes	No	Yes	Yes	No	Yes
Washington	Yes	Yes	Yes	No	Yes	No	No	Yes
West Virginia	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Wisconsin	Yes	Yes	Yes	No	No	No	No	No
Wyoming	Yes	Yes	Yes	No	No	Yes	No	Yes

Recriminalization

The pendulum of public opinion and legal permissibility swings perpetually, and sometimes, it swings backward with a vengeance. On July 1, 2000, the state of South Carolina witnessed such a reversal. A new law came into effect, rendering the ownership, possession, or operation of a video poker machine—whether for commercial gain or personal amusement—explicitly illegal. Violators of this decree were subjected to the rather predictable consequences of prosecution and substantial fines. For at least seven years following this legislative crackdown, through 2007, the only form of legalized gambling permitted within the state’s borders was the South Carolina Education Lottery , a clear signal that the state preferred its citizens’ gambling habits to be channeled into a more easily taxable and ostensibly “beneficial” stream. However, history, as it always does, repeats itself; in 2025, South Carolina was once again reportedly considering legislation to legalize commercial casinos, demonstrating the cyclical nature of moral grandstanding versus economic pragmatism.

Types

Commercial casinos

The MGM Grand Las Vegas as seen in 2019

Commercial casinos represent the opulent, often garish, face of the gambling industry. These establishments are typically founded and operated by private or publicly traded corporations, designed to maximize profit through a carefully engineered blend of entertainment and calculated risk. Beyond the sovereign lands of Native American tribes , a total of 24 states and three U.S. territories have, in varying degrees and with diverse restrictions, embraced the concept of commercial casinos. These states include Arkansas , Colorado , Delaware , Illinois , Indiana , Iowa , Louisiana , Maine , Maryland , Massachusetts , Michigan , Mississippi , Missouri , Montana , Nebraska , Nevada , New Jersey , New York , Ohio , Pennsylvania , Rhode Island , South Dakota , Virginia , and Washington . Additionally, the U.S. territories of the Northern Mariana Islands , Puerto Rico , and the U.S. Virgin Islands also permit some form of commercial casino operation. These approximately 450 commercial casinos, situated on non-tribal lands, collectively generated a gross gambling revenue of $34.11 billion in 2006, a figure that has, as we shall see, only continued its relentless ascent.

Native American gaming

Main article: Native American gaming

The Foxwoods Casino in Mashantucket, Connecticut , operated by the Mashantucket Pequot Tribal Nation

The entry of Native American tribes into the sphere of large-scale commercial gambling is a relatively recent, yet profoundly impactful, phenomenon. Its roots can be traced back to 1979, when the Seminole Tribe of Florida embarked on the then-novel venture of operating high-stakes bingo games. This marked a significant departure from their historical experience, which, while not entirely devoid of wagering, was typically confined to small-scale betting on traditional sporting contests. For example, indigenous groups such as the Iroquois , Ojibwe , and Menominee peoples were known to place bets on games like snow snake , a testament to the enduring human inclination for competitive risk. Within a mere six years of the Seminoles’ pioneering efforts, a substantial portion—between seventy-five and eighty—of the three hundred federally recognized tribes had already become involved in commercial gambling. By 2006, this number had swelled, with approximately three hundred Native American groups hosting some form of gaming operations, transforming tribal economies and reshaping the national gambling landscape.

Many Native American tribes have established and now operate casinos on their tribal lands, serving a dual purpose: to provide much-needed employment opportunities for their members and to generate revenue for their governmental operations and the welfare of their communities. This distinct sector of the gambling industry, known as tribal gaming, is subject to a complex, tripartite regulatory framework, with oversight occurring at the tribal, state, and federal levels. A fundamental principle governing Native American gaming is the requirement that all gambling revenue must be channeled back into governmental operations, economic development initiatives, and programs aimed at enhancing the welfare of their tribal members. The overarching federal regulatory framework for Native American gaming was formally established by the Indian Gaming Regulatory Act (IGRA) of 1988, a piece of legislation that sought to balance tribal sovereignty with state and federal interests. Under the provisions of IGRA, games are meticulously categorized into three distinct classes:

Class I games are defined as “traditional” games, typically involving minimal or no wagering, often rooted in cultural practices. These are under the sole jurisdiction of the individual tribe.
Class II games encompass games such as bingo , pull-tabs , and specific non-banked card games where players compete against each other rather than the house. Examples include poker , cribbage , contract bridge , and whist . These games are governed by the tribe but are also subject to regulation by the National Indian Gaming Commission (NIGC).
Class III games represent the full spectrum of modern casino games, where players typically bet against the house. This category includes popular games like craps , roulette , blackjack , baccarat , slot machines , and any other games that do not clearly fit into Class I or Class II. These high-stakes games fall under the jurisdiction of the states, necessitating formal Tribal-State compacts for their operation.

Of the 562 federally recognized tribes existing in 1988 when IGRA was enacted, a significant 201 tribes were actively participating in either Class II or Class III gaming by 2001. By 2002, tribal gambling operations, spread across 354 casinos, had generated a substantial $14.5 billion in revenue. This means approximately forty percent of the federally recognized tribes operate some form of gaming establishment, a clear indication of its economic importance.

It’s worth noting that, like any significant economic or social development, casino gambling among indigenous Americans has not been without its internal dissent. Some tribes, due to their remote geographical locations, simply find it impractical to establish a commercially successful casino. Others, driven by cultural preservation or a desire to maintain traditional ways of life, express reluctance to invite non-Native Americans onto their ancestral lands through casino operations. Despite these reservations, casino gambling has, by and large, proven to be an undeniable economic success for most participating tribes, and the impact of American Indian gambling has resonated far beyond reservation borders, fundamentally altering the economic landscape of many regions.

The Morongo Casino, Resort & Spa in Cabazon , California operated by the Morongo Band of Mission Indians

The creation of gaming establishments generates a considerable number of jobs, benefiting not only Native Americans but also a significant population of non-Native American workers. Indeed, on some reservations, the sheer scale of the casino resorts means that the number of non-Native American employees can even surpass that of tribal members, fostering complex economic interdependencies. Furthermore, some tribes, in a gesture of goodwill or strategic partnership, contribute a portion of their casino revenues to the state in which they are located, or dedicate funds to various charitable and non-profit causes. A notable example is the San Manuel Band of Mission Indians of California , which generously donated $4 million to the UCLA Law School to establish a center for American Indian Studies, and contributed an additional $1 million to the state for disaster relief following devastating wildfires in 2003. These actions demonstrate a broader community engagement that extends beyond mere economic self-interest.

Despite the proven economic benefits for both tribes and their surrounding regions, the construction of Native American casinos often encounters opposition from state residents, particularly when there are competing projects or entrenched interests. A telling example occurred in November 2003, when voters in Maine rejected a proposed $650 million casino project put forth by the Penobscots and Passamaquoddy people . The tribes’ stated objective was to create much-needed jobs for their younger generations, but the state’s voters, on the very same day, approved a plan to add slot machines to the state’s existing harness racing tracks, highlighting a preference for established, non-tribal gaming interests.

Federal oversight of Native American gaming is primarily conducted by the National Indian Gaming Commission (NIGC), an agency established under the aforementioned Indian Gaming Regulatory Act of 1988. As previously noted, Class I gaming remains under the exclusive jurisdiction of the individual tribe. Class II gaming, while governed by the tribe, is also subject to NIGC regulation, ensuring a degree of federal oversight. Class III gaming, the most complex and lucrative category, falls under the jurisdiction of the states. This means that for a tribe to construct and operate a casino featuring Class III games, it must engage in extensive negotiations and formal agreements—known as Tribal-State compacts —with the state in which it is located. These compacts are crucial, as they often determine the percentage of revenue the states will obtain from the Indian casinos, a point of constant negotiation and occasional contention.

The Indian Gaming Regulatory Act explicitly mandates that gaming revenues be utilized exclusively for governmental or charitable purposes. The specific allocation of these revenues, however, is determined by the tribal governments themselves. These funds have been strategically deployed to construct essential infrastructure like houses, schools, and roads; to bolster critical services such as health care and education; and to support a wide array of community and economic development initiatives. Indeed, Indian gaming has, for many tribes, emerged as the primary, and often only, viable economic development tool available on reservations. The National Gaming Impact Study Commission, in a rather stark assessment, concluded that “no…economic development other than gaming has been found” to be as effective. This reality has prompted tribal governments to leverage gaming revenues to diversify their economic portfolios, investing in and developing other enterprises such as museums, shopping malls, and cultural centers, seeking to build sustainable economies beyond the casino floor.

As of the latest data, 30 states currently have authorized Native American gaming operations. These states include Alabama , Alaska , Arizona , California , Colorado , Connecticut , Florida , Idaho , Iowa , Kansas , Louisiana , Massachusetts , Michigan , Minnesota , Mississippi , Missouri , Montana , Nebraska , Nevada , New Mexico , New York , North Carolina , North Dakota , Oklahoma , Oregon , South Dakota , Texas , Washington , Wisconsin , and Wyoming .

Lotteries

Main article: Lotteries in the United States

A lottery ticket issued in California

The classic lottery is a deceptively simple game of pure chance, designed to extract small sums from many in the hope of bestowing a large sum upon a statistically insignificant few. In this format, each contestant purchases a ticket bearing a specific combination of numbers. It’s crucial to understand that plays are typically non-exclusive, meaning that multiple ticket holders might, by sheer coincidence or lack of imagination, select the exact same combination. The lottery organization, with its impenetrable aura of impartiality, then draws the winning combination, usually comprising 5 to 8 numbers, often within a range of 1 to 50. This process is generally performed by a randomized, automated ball tumbler machine, ensuring that the outcome is, theoretically, beyond human manipulation, which is a comforting thought, I suppose.

To achieve the coveted win, contestants must match their chosen numbers with the drawn combination. In most standard lotteries, the order of the numbers is irrelevant, though some “mega ball” lotteries add a layer of complexity, requiring a specific “mega” number to match the designated “mega ball” in the winning combination. Should there be multiple winners—a rare but not unheard-of occurrence—they are forced to split the winnings, commonly referred to as the “Jackpot,” thus diluting the individual windfall. All winnings, to the great delight of the federal government, are currently subject to federal income taxes and are classified as ordinary income . Winners typically have two options for receiving their prize: as a structured yearly annuity spread over many years, or as a single, immediate lump sum , which is often a significantly reduced amount compared to the advertised jackpot, a detail frequently overlooked by the starry-eyed. The choice, of course, depends entirely on the specific rules of the lottery in question.

Most states now operate their own state-sponsored lotteries, and many also participate in multi-state lotteries, broadening the pool of players and, consequently, the size of the potential jackpots. There remain only five states that staunchly refuse to sell lottery tickets: Alabama , Alaska , Hawaii , Nevada , and Utah . In some states, the revenues generated from these lotteries are specifically designated for particular budgetary purposes, most frequently—and conveniently—for education, providing a palatable justification for what is essentially a voluntary tax on hope. Other states, with less pretense, simply deposit lottery revenue directly into their general funds, where it can be used for any government expenditure.

Multi-jurisdictional lotteries, by virtue of their vastly larger player bases, predictably offer far more enticing jackpots. The Mega Millions and Powerball games stand as the preeminent examples of such lotteries in the United States , drawing participants from a great number of states and regularly generating jackpots that stretch into the hundreds of millions, occasionally even billions, of dollars—sums so astronomical they almost seem to defy reality, much like the odds of winning them.

Scratchcard games

Beyond the traditional drawing-based lotteries, many state lotteries offer other forms of instant-gratification gambling. These are most commonly found in the ubiquitous scratchcard format, though some states also utilize pull-tab games, which operate on a similar principle. In both formats, cards are purchased, concealing opaque areas that hide the outcome of the game. In some straightforward versions, the contestant simply removes all the opaque material to reveal whether they have won and the corresponding prize amount. Other scratchcard games introduce a modicum of “choice,” requiring the contestant to selectively scratch certain parts of the card, perhaps to match specific symbols or amounts, or to engage in a miniature, simplified game, all designed to prolong the illusion of control before the inevitable revelation of loss. It’s a rather transparent psychological trick, but one that continues to prove effective.

Sports betting

Main article: History of gambling in the United States § Legalization of sports gambling

Map of sports betting legality as of January 2024 [update]

Sports betting legal
Sports betting illegal

The sports book at Peppermill Reno in Reno, Nevada

For decades, the landscape of sports betting in the United States was largely defined by federal prohibition. In 1992, the U.S. Congress enacted the Professional and Amateur Sports Protection Act (PASPA), a legislative hammer that effectively mandated states not to legalize sports betting. The few exceptions to this broad prohibition included parimutuel wagering on horse racing and dog racing , as well as the obscure sport of jai alai . Furthermore, states like Oregon , Delaware , and Montana were granted exemptions for their existing sports lotteries, and Nevada , ever the outlier, was permitted to continue its licensed sports pools, a testament to its long-established gambling culture. PASPA also included a brief, one-year window during which states with existing licensed casino gaming could legalize sports wagering; New Jersey famously attempted to capitalize on this, but failed to meet the deadline, setting the stage for a protracted legal battle.

The federal stranglehold on sports betting finally broke in 2018 when PASPA was unequivocally overturned by the Supreme Court of the United States in the landmark case of Murphy v. National Collegiate Athletic Association . The Court, in its ruling, determined that PASPA unconstitutionally conflicted with the Tenth Amendment , which reserves powers not delegated to the federal government to the states. This decision unleashed a torrent of legislative activity, with New Jersey , Delaware , and numerous other states swiftly drafting and enacting bills to legalize sports betting. The subsequent rush to capitalize on this new revenue stream meant that states had to quickly determine which governmental department would oversee state-regulated sportsbooks. The choices typically fell between their respective gambling commissions , existing lottery boards, or, in a unique case like Kentucky , the state horse racing commission, demonstrating the varied bureaucratic approaches to a newly legitimate industry.

As of September 2023, the landscape of sports betting has been dramatically transformed. Sportsbooks, both retail and online, are now legally operational in 38 states, the District of Columbia , and the territory of Puerto Rico . Specifically, online sports betting, which offers the ultimate convenience for the modern gambler, is legal in 30 states, Washington D.C. and Puerto Rico . The American Gaming Association reported a staggering “handle” (total amount wagered) of $121 billion in 2023, generating a revenue of $11.0 billion for commercial sportsbooks. This represents a monumental increase from 2018, the year PASPA was overturned, when approximately 25 million fewer Americans were actively wagering on sporting events. It’s a clear indication that, given the opportunity, the public’s appetite for sports betting is, if nothing else, robust.

The following table meticulously details the current legality of sports betting across U.S. states and territories, including both retail (in-person) and online wagering options, along with pertinent notes on their legislative journey and effective dates.

State	Sports betting legalized	Retail sports betting	Online sports betting	Notes
Alabama	No	No	No
Alaska	No	No	No
Arizona	Yes	Yes	Yes	Legalized on April 15, 2021; effective May 24, 2021
Arkansas	Yes	Yes	Yes	Legalized in November 2018; effective July 1, 2019. Online sports betting allowed since February 22, 2022.
California	No	No	No
Colorado	Yes	Yes	Yes	Legalized on November 5, 2019; effective May 2020
Connecticut	Yes	Yes	Yes	Legalized in May 2021; effective November 2021
Delaware	Yes	Yes	No	Offered parlay betting and championship futures for the NFL prior to PASPA being struck down; expanded on June 5, 2018
Florida	Yes	Yes	Yes	Legalized in May 2021; effective briefly in November-December 2021; resumed in November 2023; owned by the Seminole Tribe of Florida .
Georgia	No	No	No
Hawaii	No	No	No
Idaho	No	No	No
Illinois	Yes	Yes	Yes	Legalized on June 2, 2019
Indiana	Yes	Yes	Yes	Legalized in May 2019; effective September 1, 2019
Iowa	Yes	Yes	Yes	Legalized in May 2019; effective August 15, 2019
Kansas	Yes	Yes	Yes	Legalized on July 1, 2022; effective September 1, 2022.
Kentucky	Yes	Yes	Yes	Legalized in March 2023, effective June 28, 2023. In-person sportsbook location bets allowed since September 7, 2023. Online betting allowed since September 28, 2023.
Louisiana	Yes	Yes	Yes	Legalized in November 2020; only in 55 out of 64 parishes.
Maine	Yes	Yes	Yes	Legalized on May 2, 2022. Online sports betting went live on November 3, 2023, with in person betting allowed but no authorized entity yet licensed.
Maryland	Yes	Yes	Yes	Legalized in November 2020; effective June 2021.
Massachusetts	Yes	Yes	Yes	Legalized on August 10, 2022.
Michigan	Yes	Yes	Yes	Legalized in December 2019; in-person sports betting allowed starting March 2020; online and mobile betting allowed starting January 22, 2021
Minnesota	No	No	No
Mississippi	Yes	Yes	No	Legalized on August 1, 2018; mobile betting not allowed
Missouri	Scheduled	Scheduled	Scheduled	Voters approved sports betting on November 5, 2024. Scheduled to go live on December 1, 2025.
Montana	Yes	Yes	Yes	Legalized on May 3, 2019. *Online gaming in Montana is only permitted on the premises of gaming facilities.
Nebraska	Yes	Yes	No	Legalized in May 2021; effective June 2023.
Nevada	Yes	Yes	Yes	Legalized in 1949 (prior to PASPA)
New Hampshire	Yes	Yes	Yes	Legalized in July 2019
New Jersey	Yes	Yes	Yes	Legalized on June 14, 2018
New Mexico	Yes	Yes	No	Legalized on October 16, 2018
New York	Yes	Yes	Yes	Legalized on July 17, 2019. Online sports betting allowed since January 8, 2022.
North Carolina	Yes	Yes	Yes	Legalized on July 26, 2019; tribal casinos only; mobile betting not allowed
North Dakota	Yes	Yes	No	Only at the Dakota Magic Casino and Hotel in Hankinson , owned by the Sisseton-Wahpeton Oyate Tribe
Ohio	Yes	Yes	Yes	Legalized on March 23, 2022; effective January 1, 2023
Oklahoma	No	No	No
Oregon	Yes	Yes	Yes	Legal prior to PASPA but limited; expanded on August 27, 2019
Pennsylvania	Yes	Yes	Yes	Legalized on November 16, 2018
Rhode Island	Yes	Yes	Yes	Legalized on November 26, 2018
South Carolina	No	No	No
South Dakota	Yes	Yes	No	Legalized on November 3, 2020; limited to the city of Deadwood
Tennessee	Yes	No	Yes	Legalized on April 30, 2019; allows only online betting
Texas	No	No	No
Utah	No	No	No
Vermont	Yes	No	Yes	Legalized on June 14, 2023; effective January 2024; allows only online betting.
Virginia	Yes	Yes	Yes	Legalized on July 1, 2020
Washington	Yes	Yes	No	Legalized in March 2020; effective September 2021
West Virginia	Yes	Yes	Yes	Legalized on August 30, 2018
Wisconsin	Yes	Yes	No	Legalized in July 2021; effective November 2021; tribal casinos only
Wyoming	Yes	Yes	Yes	Legalized in April 2021; effective September 2021.
American Samoa	No	No	No
District of Columbia	Yes	Yes	Yes	Legalized in May 2019
Guam	No	No	No
Northern Mariana Islands	No	No	No
Puerto Rico	No	No	No
US Virgin Islands	No	No	No

Gambling revenues

This article needs to be updated. Please help update this article to reflect recent events or newly available information. (January 2023)

One might observe that the relentless march of human desire for immediate gratification, or perhaps just a fleeting escape from reality, is perfectly reflected in the ever-inflating figures of gambling revenues. These numbers, far from being mere statistics, paint a vivid picture of a deeply ingrained societal habit, one that governments are increasingly eager to tap into.

According to the Center for Gaming Research at University Libraries, the total legal gambling revenues for the year 2007 were as follows, providing a snapshot of the industry over a decade ago:

Total: $158.54 billion
Commercial casinos: $41.2 billion
Tribal casinos : $31.945 billion
Card rooms : $1.9 billion
Lotteries : $80.55 billion
Legal bookmaking: $248 million
Pari-mutuel wagering : $295 million
Charitable games and bingo : $2.15 billion

Fast forward to 2023, and the landscape, while still dominated by familiar forms, shows a clear and dramatic shift in scale and composition. The American Gaming Association , providing figures specifically for commercial establishments (and notably excluding tribal casinos in this particular breakdown), reported the following staggering revenues for 2023:

Total: $66.6 billion (a significant increase from the commercial casino portion of 2007, even when accounting for different reporting scopes)
Casinos: $49.4 billion (reflecting the continued dominance of traditional casino operations)
Sports gambling (not including parimutuel): $11.0 billion (a category that has exploded in the wake of federal legalization, demonstrating the immense, pent-up demand for wagering on athletic contests)
- Online sports betting: $10.4 billion (highlighting the overwhelming preference for digital convenience, where bets can be placed from anywhere, at any time)
- Retail sports betting: $0.6 billion (a comparatively tiny fraction, indicating that while brick-and-mortar sportsbooks exist, the future, and indeed the present, is largely online)
Online casino: $6.2 billion (a growing segment that brings the entire casino experience, from slots to table games, directly to the user’s screen)
Total Online (sports and casino): $16.6 billion (underscoring the transformative power of digital platforms in the gambling industry, enabling unprecedented accessibility and transaction volumes, much to the delight of operators and the potential detriment of those who find themselves caught in its pervasive web).

Concurrently, the National Indian Gaming Commission (NIGC) independently reported that Native American gaming operations generated an impressive $41.9 billion in revenue in 2023. This figure, combined with the commercial sector’s numbers, paints a comprehensive picture of a multi-billion dollar industry that continues to expand, driven by technological innovation, evolving legal frameworks, and the enduring human fascination with chance.

Gambling In The United States

History

Sectors

Primary sector

Secondary sector

Tertiary sector

Financial services

Largest companies

Economy by state

State statistics

Economy by city or county

Labor force

Labor Law

Employment

History

Authorized types

Legality

Legality of gambling types in U.S. states and territories (commercial, racetrack casinos, etc.)

Recriminalization

Types

Commercial casinos

Native American gaming

Lotteries

Scratchcard games

Sports betting

Gambling revenues

Notes

See also