Sports Betting by State: Where Is It Legal in 2026?

Sports betting is legal in 39 states and Washington D.C. as of May 2026, and 30 of those states allow fully licensed online sportsbooks. If you live in one of the remaining 11 states, you are either stuck with in-person options only or locked out entirely.

Where Sports Betting Is Legal Right Now

The 39 legal states cover most of the country's population. Online betting is available in major markets including New Jersey, New York, Pennsylvania, Illinois, Michigan, Colorado, and Virginia. These states host the big operators: FanDuel, DraftKings, BetMGM, Caesars, and ESPN Bet.

States with legal betting but no online option include Mississippi and Montana, where you must place bets at a physical sportsbook or licensed retail location. That distinction matters if you are researching where to live and want full mobile access.

Five states have passed legislation but have not yet launched: North Carolina expanded its market in 2023 but has seen ongoing regulatory adjustments, while a handful of others are still working through licensing timelines.

States Where Sports Betting Is Still Illegal

As of May 2026, these states have no legal sports betting framework at all: California, Texas, Florida (online remains blocked despite ongoing litigation), Idaho, Utah, Hawaii, Alaska, Alabama, Georgia, Minnesota, and Missouri. That is a significant list.

California and Texas together represent roughly 60 million adults of legal betting age. Both states have seen repeated failed ballot initiatives and legislative attempts. Texas has tribal gaming interests that complicate any path forward. California's 2022 ballot failure was so expensive, over $300 million spent by both sides, that another attempt has moved slowly.

Florida is a special case. The Seminole Tribe's Hard Rock Bet app operated under a legal gray area for years, and federal court battles have dragged into 2026 without a clean resolution. Online betting there remains effectively off-limits for non-tribal operators.

Utah and Hawaii are the most locked-down states. Both have constitutional or cultural barriers to any form of gambling expansion, and neither shows signs of movement.

The 2026 Federal Tax Situation on Winnings

This is where things get complicated for bettors who actually win. Federal law requires sportsbooks to report winnings of $600 or more to the IRS if your payout is at least 300 times your wager. That threshold has not changed, but the broader tax environment around gambling income has shifted.

Under the Tax Cuts and Jobs Act extension framework that carried into 2026, gambling winnings remain fully taxable as ordinary income at the federal level. The standard deduction increase means fewer bettors itemize, which also means fewer bettors can deduct gambling losses against their winnings. You can still deduct losses up to the amount of your winnings if you itemize, but with the higher standard deduction, most casual bettors lose that benefit entirely.

State tax treatment on gambling winnings varies considerably. New York taxes gambling income at up to 10.9%, the same rate that applies to your regular income. States like Nevada, Wyoming, South Dakota, and Texas have no state income tax, meaning sports betting winnings face zero state tax. If you are a serious bettor, that difference is material. Our Capital Gains Tax by State breakdown covers how investment and income tax rates stack up state by state, and the same logic applies to gambling income.

Can You Use a VPN to Bet Across State Lines?

No. Using a VPN to spoof your location and access a sportsbook in a state where you are not physically present violates the terms of service of every major operator and potentially federal law under the Wire Act. Sportsbooks use GPS verification, IP address checks, and device fingerprinting simultaneously. Accounts caught doing this get permanently banned and winnings get confiscated.

This also applies to traveling. If you place a bet while physically in New Jersey, that bet is legal even if you live in Texas. Legal sports betting is tied to where your body is, not where you live.

If you are thinking about relocating to a no-income-tax state that also has legal online betting, Nevada, Wyoming, and South Dakota all fit that profile. Use our state comparison calculator to see how the full tax picture changes when you move.

For retirees specifically, the gambling income question connects to a broader picture of how states treat all forms of passive income. Our Best States for Retirees to Avoid Taxes covers which states offer the most favorable treatment across the board.

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Key Takeaways

• Sports betting is legal in 39 states and D.C. as of May 2026, with 30 offering licensed online platforms.
• California, Texas, and Florida remain the three largest states without functioning legal online sportsbooks.
• Federal gambling winnings are taxed as ordinary income; living in a zero-income-tax state eliminates state-level tax on those winnings entirely.

Compare states side by side on taxes, laws, and cost of living at liveordiehere.com to see where your betting income, and all your income, goes furthest.