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US Sports Betting Guide (How Legal Betting Works in 2026)

By the OddsDerby editorial team · Updated · 5 min read

Legal sports betting in the United States is regulated state by state, so whether you can bet, where and how depends on the state you are physically in when you place the bet. Since the Supreme Court cleared the way in 2018, many states have launched retail and online sportsbooks, typically with a minimum age of 21 and strict geolocation checks. This US sports betting guide covers how the system works, how to read American odds and the main bet types, and what to know about taxes and responsible play.

For decades, a federal law called the Professional and Amateur Sports Protection Act (PASPA) effectively limited full-scale sports betting to Nevada. In May 2018, the US Supreme Court ruled in Murphy v. NCAA that PASPA was unconstitutional. The decision did not legalize sports betting nationwide; it allowed each state to decide for itself.

Since then, states have taken very different approaches:

  • Some allow online and retail sports betting.
  • Some allow retail only, at casinos, racetracks or tribal venues.
  • Some limit betting to a single operator or a state lottery platform.
  • Some have not legalized sports betting at all.

The map keeps changing as new laws pass and existing markets are amended, so we do not list states here. Check your state gaming regulator's website for the current position and the list of licensed sportsbooks. Our US betting sites page also tracks licensed operators.

Who can bet: age, location and identity

Age

The minimum age is 21 in most states. A few allow betting from 18 in certain circumstances, so always check your state's rules. Licensed sportsbooks verify your age during sign-up.

Geolocation

Online betting is legal only while you are physically located in a state where it is permitted, regardless of where you live. Licensed apps use geolocation technology to confirm your location before every bet. If you are near a state border, on a VPN or using location-spoofing tools, bets may be blocked. Using a VPN to get around these checks breaks sportsbook terms and can lead to account closure and forfeited winnings.

Identity verification

Expect to provide your full name, date of birth, address and the last four digits of your Social Security number. Some sportsbooks ask for photo ID as well.

Choosing a sportsbook

Major licensed sportsbooks include DraftKings, FanDuel and bet365, among others. Availability depends on your state. When comparing, look at:

  • Licensing by your state regulator
  • Odds and pricing, especially on spreads and totals where the standard −110 can vary. Our odds comparison pages help.
  • Promotions and their terms. See our bonuses page and betting bonuses explained.
  • Deposit and withdrawal options, such as debit cards, online banking, PayPal or other e-wallets where available
  • Responsible gambling tools, including deposit limits and time-outs

Understanding American odds

US sportsbooks show American odds by default:

  • Negative odds (−150) show how much you need to stake to win $100. Bet $150 to win $100 profit.
  • Positive odds (+130) show how much a $100 stake wins. Bet $100 to win $130 profit.

The common price −110 means risking $110 to win $100, a decimal price of about 1.91. Our odds converter switches between American, decimal and fractional instantly, and betting odds explained shows the formulas.

The main US bet types

Moneyline

A straight bet on who wins, usually including overtime. Example: Boston Celtics −200, opponents +170. A $50 bet on the Celtics wins $25 profit; a $50 bet on the underdog wins $85.

Point spread

The spread handicaps the favourite. If the Philadelphia Eagles are −6.5, they must win by 7 or more for a spread bet on them to win. A bet on the underdog at +6.5 wins if they lose by 6 or fewer, or win outright. Spreads are usually priced around −110 on both sides.

Totals (over/under)

Bet on whether the combined score goes over or under a line. With an NFL total of 44.5, a final score of 24-21 (45 points) means the over wins.

Parlays and same-game parlays

A parlay combines several bets into one, and every leg must win. Odds multiply, so payouts grow quickly, but so does the risk. Same-game parlays, which combine outcomes from a single game, have become very popular at sportsbooks such as FanDuel and DraftKings. Because the outcomes are related, the sportsbook adjusts the odds, and these bets usually carry a higher built-in margin. Our accumulator betting guide explains the maths.

Props and futures

Player props (such as passing yards, points or strikeouts), game props and futures (such as the championship winner) are widely offered. Learn more in betting markets explained.

A quick worked example

You bet $110 on a spread at −110 and $50 on a +250 underdog moneyline. If both win, you collect $210 from the spread ($110 stake plus $100 profit) and $175 from the moneyline ($50 stake plus $125 profit). If the spread wins and the moneyline loses, you get $210 back on $160 staked. Our bet calculator handles these numbers for you.

Taxes on sports betting winnings

Under federal law, gambling winnings are taxable income, whether or not you receive a tax form. In general terms:

  • For winnings above certain thresholds, the sportsbook may issue a Form W-2G and, in some cases, withhold federal tax.
  • You are expected to report all gambling winnings on your tax return, even small amounts that do not trigger a W-2G.
  • Many states also tax gambling winnings.
  • Rules on deducting gambling losses have changed recently and depend on how you file.

Tax rules are complex and change over time, so keep good records of your bets and speak to a qualified tax professional for advice on your situation.

Avoiding unlicensed offshore sportsbooks

Offshore sites that accept US customers without a state licence offer no consumer protection. If they refuse to pay or close your account, you have little recourse. Stick to sportsbooks licensed by your state regulator. Our guide to betting scams to avoid explains how to check a licence.

Responsible gambling

Licensed US sportsbooks must offer tools such as deposit limits, time-outs, cool-off periods and self-exclusion. Many states also run their own self-exclusion programmes. If gambling is causing problems for you or someone you know, call 1-800-GAMBLER for confidential help. You must be 21 or older in most states. Our responsible gambling page has more resources.

FAQ

Is sports betting legal in every US state?

No. Since Murphy v. NCAA in 2018, each state decides whether and how to allow sports betting. Some allow online and retail betting, some retail only, and some none at all. The picture changes often, so check your state gaming regulator for the latest rules.

Can I bet on sports in a state where I do not live?

Generally yes, if you are physically located in a state where online betting is legal and you meet its age requirements. Sportsbook apps use geolocation to confirm where you are when you bet, not where you live.

What is the legal age for sports betting in the US?

The minimum age is 21 in most states, although a few set it at 18 in certain cases. Check your state's rules, and expect licensed sportsbooks to verify your age and identity.

Do I have to pay taxes on sports betting winnings?

Yes. Gambling winnings are taxable income under federal law, and many states tax them too. Sportsbooks may issue a Form W-2G for winnings above certain thresholds, but you should report all winnings. Speak to a tax professional for advice.

What does −110 mean in sports betting?

It means you need to bet $110 to win $100 profit. It is the standard price on many spreads and totals, and the difference between −110 and an even-money +100 price is how the sportsbook builds in its margin.

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