Gaming is very popular around the world and certainly has a huge fanbase in the USA. Whether you like to try MMOs, RPGs or the latest mobile games, this is a hobby with lots to offer. As a reputable industry, gaming has regulations in place to protect players. This includes ratings on games and rules around what can be shown in game adverts on TV.
Regulation plays a vital role in other industries and this includes betting. While casino gaming online is an obvious example of this for players, sports betting is also a heavily regulated space. One thing which might not be apparent to any US-based bettor though is how betting laws can vary between individual states.
This makes it necessary to learn exactly how state rules around betting work before putting any money down. But how do betting regulations in various states compare?
Betting not legal in every state
In simple terms, some states do have regulations which allow legal sports betting but others do not. The net effect of this is that sports betting is legally allowed in some states but is a prohibited activity in others.
This guide to sports betting in Ohio at WSN illustrates this, and shows that state officials made it a legal activity in 2021. Other states like New Jersey, New York, Philadelphia and Delaware have also passed laws since 2018 which have legalized sports betting.
Betting regulations look a lot different in some other states by comparison though. Places like Idaho, California, Hawaii and Alaska have yet to pass laws which allow betting. This indicates they have a different take on this activity.
Taxation rates vary between states
Just as the best MMORPG sites differ in what they offer to users, the rate of taxation applied on sports betting by states often varies. These are taxes which sports betting providers in a state pay on their revenues and are included in official state betting regulations.
The easy way to think about this is that some states charge higher rates of tax on sports betting providers than others. New York and New Hampshire have a 51% sports betting taxation rate.
On the other end of things, Nevada and Iowa come in well under this at 6.75%. Setting the taxation rate is a balancing act for individual states, as they need it to be high enough to raise decent amounts but attractive enough to encourage sports betting providers to set up within their borders.
Types of betting allowed in various states
When comparing regulations for betting in different states, it’s not just about the act of betting itself being made legal. The types of sports betting which have been legalized often differs between states. This means regulations around what kind of betting is allowed looks different in some states compared to others
For instance, Nevada allows both in-person (retail) and online wagering on sports. This is also true for states like Arizona, Colorado and Connecticut. Not all US states have passed regulations which make both retail and online wagering legal though. Montana, Nebraska and New Mexico only allow retail betting in person at physical locations under law.
College sports betting rules vary
A closer look at US sports betting regulations shows that there’s significant differences in how states deal with college sports. Legislation often takes differing approaches to what type of bets can be made on college sports or if you can bet on them at all.
Illinois does not allow betting on in-state college teams or college player prop bets, while Indiana allows betting on in-state college teams and pre-game player prop wagers but doesn’t support live player prop bets.
Washington has regulations which allow betting on college games held in the state but rules against wagers on in-state college teams and player prop bets. At the other end of the scale, states like Arkansas, Kansas, Kentucky and Michigan currently have no restrictions around college sports betting in their regulations.
Structure of sports betting markets
Although you might assume each state has similar rules around how sports betting markets operate, this is not strictly true. Some states adopt an open structure under law which allows numerous licensed platforms to operate. New Jersey is a case in point and has multiple operators making up its market.
Other states have regulations which include a limited market structure. This type of approach leads to there being a lot fewer sports betting providers being available for gamblers to sign up with. New Hampshire is a good example of a state which regulates on a limited market basis.
Sports betting in the US: Regulations vary between states
There’s little doubt that the sports betting picture in the US is a complex one and that regulations in each state vary. This becomes clear when you start to compare how states legislate sports wagering and exactly how they handle this activity under their individual laws. If you plan to start placing bets on sports in the US, it’s essential to check the latest regulations in the state you’ll bet from.
