Sports betting has become a winning proposition in America, booming after the 2018 repeal of the Professional and Amateur Sports Protection Act (PASPA). Since then, revenues have soared, millions of Americans have embraced legal wagering, and more states have opened their markets to meet rising consumer demand. Yet, the path to full legalization has been uneven, with debates over black markets, consumer well-being, and regulatory challenges continuing to shape the landscape. This index provides a state-by-state analysis of sports betting policies, highlighting successes, setbacks, and opportunities for improvement.
Our second edition of the index builds on the existing analysis using public information provided by the Legal Sports Report and the Tax Foundation, information provided by state authorities, real-time legal updates, tax authority records, and press articles on the topic. Readers will discover a new assessment of sports betting taxation and taxation discrimination. Older categories have been expanded with more granular assessments of each case and a reweighted points system. We added a complete methodology section that goes into full detail and justification for each variable. Similar to the US State Vaping Index 2024, scores now have a grading system of A+, A, B, C, D, and F.
Please note that legal developments reflect the latest available information at the time of this report (April 2025).
At a macro level, the defining characteristic of the current U.S. sports betting landscape is consistency, particularly in terms of regulatory barriers and taxation. Much like the previous assessment, the median score across states is 29.5 out of 55—a solid “C” grade—reflecting a widespread trend of partial legalization constrained by complex, often burdensome regulations. States like Massachusetts exemplify this middle ground, with formal legalization but numerous restrictions on betting types and high effective tax rates that undermine market innovation. Meanwhile, heavily taxed and tightly regulated jurisdictions such as New Jersey and Montana face structural challenges that drive consumers toward unregulated markets, the latter being a stark warning about the consequences of state monopolies and digital exclusion.
At the opposite end, states like Nevada, Iowa, Wyoming, Kansas, and West Virginia provide a blueprint for effective, competitive, and consumer-friendly sports betting environments. Their balanced tax structures, high market accessibility, and minimal restrictions not only promote healthy industry growth but also serve as a bulwark against illegal gambling. In sum, while the legal landscape has matured, most states remain mired in outdated or overly cautious frameworks, with only a handful demonstrating the full potential of thoughtful, market-oriented regulation.
There are several policy and consumer upsides to choosing the fourteen states with an A+ and A grade for sports betting, such as having the complete set of online and retail wagering options, almost no restrictions on how one can legally bet, a significant degree of market competition offering good services at lower prices, and a low, non-discriminatory and efficient tax regime.
Research note: We strive to improve the quality of this index’s underlying data every year and refine its methodology further. However, we sometimes face contradictory information, indicators measured differently by different states, and constant shifts in legislation (where a stalled bill may be adopted or suddenly abandoned). We ask the index readers to acknowledge the difficulties in working with heterogeneous data and caution users to be aware of the underlying complications.
Furthermore, what makes a state “good” for each individual can have a distinct qualitative element. Please remember, then, that our assessments are strictly quantitative and policy-oriented. We are not passing moral judgment on a state’s goodness and badness or downplaying personal experiences surrounding sports betting by ranking one state lower than another. We are simply highlighting takeaways based on the data available at the time of this index.
We will, from time to time, keep you updated on new and troublesome regulations in your country and ways that you can help use fight them. Don’t worry, being a member is always free!
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