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After a flurry of states legalizing sports betting every year for nearly a decade, the pace of legalization has slowed down.
Only one state—Missouri—legalized sports wagering in 2024. And this year, only one or two states at most are likely to reform their laws. This action is only a trickle compared to prior years. In 2023, six states launched new betting markets: Florida, Kentucky, Maine, Massachusetts, Nebraska and Ohio.
“All the low hanging fruit has been picked,” says Chris Cylke, the senior vice president of government relations at the American Gaming Association. “What you’re left with is a real handful of states.”
Gambling on sports is currently legal in 39 states (plus Puerto Rico and Washington, D.C.), while mobile sports betting is legal in 31 states. The legalization of sports betting spread across the country rapidly starting in 2018 when the Supreme Court overturned the Professional and Amateur Sports Protection Act. Better known as PASPA, the law effectively made sports betting illegal except in Nevada and a few other states. After the ban was struck down, states have been allowed to legalize sports betting and launch their own programs.
Despite the slowdown in new markets, 2024 was another one for the record books in terms of the amount of money Americans gambled on sporting events. Americans wagered an estimated $150 billion in 2024, a $30 billion increase over 2023, according to the American Gaming Association. American sportsbooks generated more than $14 billion off those wagers, up 27% compared to 2023.
There is still hope for a few states to legalize sports wagering in 2025.
“This year is leaning towards a slow boil,” says Cylke. [Last year] was an encouraging year— we added one state—and there were places that got close and hopefully that momentum and optimism will continue to translate into success in 2025.”
Looking ahead, there are a handful of states that could legalize new sports betting markets, but do not hold your breath for the biggest two—California and Texas.
Here’s where the action stands with the states that have yet to legalize sports betting:
Alabama
A bill that would have allowed mobile sports wagering, up to seven casinos and a lottery failed last year after a fierce debate. There are three tribal casinos in Alabama, which only have electronic bingo machines, but this bill would have allowed for up to seven commercial casinos to open throughout the state. Without a lottery, slot machines, card games, and sports betting, Alabama is one of the most restrictive jurisdictions when it comes to gambling.
California
After two failed ballot initiatives in 2022, the tribes, gaming companies and politicians in the Golden State hit pause for the last few years. California’s stake holders are expected to come back to the table this year to negotiate what a successful ballot measure would look like and get enough signatures. This process is expected to last a year—moving any potential for legalization to 2026.
Georgia
Lawmakers have tried to pass sports betting bills for the past three years and were unsuccessful in getting a ballot measure in front of voters in 2023. Georgia will not be a slam dunk, but there is optimism for reform in 2025.
Minnesota
A bill that would give control to a legal sports betting market in Minnesota to Native American tribes failed to pass the state senate in 2022 and the effort failed again in 2023. Last year, legislators could not find a consensus and no bill moved forward. With a good deal of support politically, Minnesota lawmakers will try again this year.
Texas
The Lone Star state’s legislature was not in session in 2024, but Texas lawmakers are back to work this year. In late 2023, Miriam Adelson—the billionaire widow of Sheldon Adelson, the former CEO and chairman of casino company Las Vegas Sands—bought a majority stake in the Dallas Mavericks NBA team from billionaire Mark Cuban. Las Vegas Sands and its lobbyists have been working on elected officials to support the idea of legalizing casinos in the state. “The conventional wisdom is that they will make progress, but won’t get across the finish line,” says Cylke. Since the Texas legislature only meets every other year, the legalization debate will likely play out in 2027.
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