For generations, Americans have participated in sports betting. However, the recent shift isn’t in who is betting, but rather how and where. Increasingly, states are choosing to regulate sports betting, bringing the activity out of the shadows and into a transparent marketplace designed to protect consumers and generate revenue for public benefits.
The Rise of Legal Sports Betting
Legal online sports wagering is now available in more than 30 states. This expansion is largely due to the recognition that simply prohibiting betting doesn’t eliminate it; it merely drives it offshore, where We find no consumer protections. Legalization and regulation, so far, have proven effective in curbing the illegal market within the United States.
Although approximately three-quarters of Americans favor legal, regulated sports betting in their state, roughly 3 to 4 percent experience problem gambling. However, legal markets are uniquely positioned to address this issue by funding solutions and providing resources that are unavailable in illegal markets.
Responsible Gaming Initiatives
Regulated operators collectively invest hundreds of millions of dollars annually in responsible-gaming tools, education, research, and treatment services. These include deposit and time limits, self-exclusion programs, and trained staff intervention.
Studies in states like New Jersey, Connecticut, and Indiana suggest that legalization hasn’t led to a surge in problem gambling. A Rutgers University study found that the prevalence rate of high-risk problem gambling remained stable in New Jersey between 2017 and 2021, even after sports betting was legalized. Similar stability has been observed in Connecticut over a 15-year period, and a decrease in Indiana from 2021 to 2024.
Economic Impact and Transparency
Legal sports betting is also proving to be economically beneficial. A Progressive Policy Institute report found no increase in bankruptcies or financial instability in states that have legalized mobile sports betting, and gambling’s share of consumer spending has remained steady at just over 1 percent. Savings rates and retirement contributions have also remained relatively stable.
Recent sports scandals, rather than undermining the case for legalization, have actually highlighted its benefits. Because betting is now legal and monitored, regulated sportsbooks can flag unusual wagering patterns and share that information with leagues and law enforcement, exposing misconduct that would have otherwise remained hidden.
Nationwide, legal sports betting has generated billions of dollars in tax revenue, supporting education, infrastructure, and local aid. It also supports more than ten thousand US jobs and has significantly reduced the size of the illegal market. Today, 77 percent of all bets in the United States are placed in legal markets.
Frequently Asked Questions
What is the Sports Betting Alliance?
The Sports Betting Alliance is a trade advocacy organization representing legal, regulated online sportsbook operators.
What percentage of Americans favor legal sports betting?
According to American Gaming Association findings, about three-quarters of Americans favor legal, regulated sports betting in their state.
Has legalization led to an increase in problem gambling?
Studies in New Jersey, Connecticut, and Indiana suggest that legalization has not led to a significant increase in problem gambling rates.
As states continue to weigh the benefits and risks of sports betting, the choice remains clear: a regulated environment with safeguards and transparency, or an unregulated one with none of the above.
