Yes, but there is an important qualification: sports betting was not illegal everywhere in the United States before 2018.
For much of the country, federal law prevented states from authorizing sports betting. The major turning point came in 2018, when the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act, commonly called PASPA. That decision removed the federal restriction that had prevented most states from legalizing sports betting.
Before 2018, Nevada was the major state associated with legal single-game sports betting, while a small number of other states had limited forms of sports wagering under grandfather provisions.
What changed in 2018?
The key case was Murphy v. NCAA.
In May 2018, the Supreme Court ruled that PASPA violated the Constitution’s anti-commandeering principle. The law had prohibited states from authorizing certain sports-gambling activities.
The Court’s opinion explains that PASPA restricted states from sponsoring, operating, advertising, promoting, licensing, or authorizing sports-gambling schemes based on competitive sporting events.
The Supreme Court therefore did not simply pass a new federal law making sports betting legal nationwide.
Instead, it invalidated the federal law that had prevented states from authorizing it.
That distinction is important.
Was sports betting a federal crime before 2018?
Not exactly.
PASPA did not make sports gambling itself a general federal criminal offense. The Supreme Court’s opinion specifically explained that PASPA prohibited states from authorizing sports gambling and created a mechanism for civil enforcement.
At the same time, individual states could have their own laws prohibiting gambling, and federal laws other than PASPA could apply to particular gambling activities.
So saying “sports betting was federally illegal everywhere before 2018” is an oversimplification.
A more accurate statement is that PASPA generally prevented states from legalizing and authorizing sports betting, while state gambling laws determined much of the actual legality of wagering within each state.
What was PASPA?
Congress enacted PASPA in 1992.
Its purpose was to prevent states from broadly expanding legalized sports gambling. The law created a federal framework that largely prohibited states from authorizing sports betting while allowing certain jurisdictions that already had qualifying sports-gambling laws to continue under a grandfather provision.
The American Gaming Association’s historical account identifies four states that had qualifying sports betting provisions when PASPA took effect: Nevada, Delaware, Montana, and Oregon.
However, the type of sports betting available in those states was not identical.
Nevada became the clearest example of full-scale legal, regulated sports wagering, while the other grandfathered states had more limited forms.
Why was Nevada different?
Nevada had a long-established legal sports-wagering industry before PASPA.
Because of that history, Nevada was able to continue offering traditional sports betting after PASPA was enacted.
For decades, this meant that a person who wanted to place a legal single-game sports wager through a licensed bookmaker generally had far fewer options than a bettor has today.
Nevada’s sports books became a defining feature of American sports gambling culture.
What about Delaware, Montana, and Oregon?
These states had forms of sports wagering that survived because of PASPA’s grandfather provisions.
The American Gaming Association’s 2016 report explained that Nevada, Delaware, Montana, and Oregon were the four states that had previously allowed sports betting and were therefore permitted to continue under the federal law.
However, the availability and structure of betting differed by state.
That is why it is misleading to imagine that sports betting was simply “legal in four states and illegal everywhere else.” The legal landscape included different types of wagering and state-specific regulations.
Why did the Supreme Court strike down PASPA?
The central constitutional issue was federalism.
The Supreme Court concluded that Congress could not simply command states to maintain or enforce a particular prohibition in the way PASPA attempted to do.
The Court’s decision focused on the Constitution’s anti-commandeering principle, which limits the federal government’s ability to require states to implement federal regulatory policy.
The decision therefore changed the legal landscape dramatically.
After PASPA was invalidated, individual states were free to decide whether to legalize sports betting, subject to other applicable federal and state laws.
Did every state legalize sports betting in 2018?
No.
The Supreme Court decision did not automatically legalize sports betting in all 50 states.
Instead, it gave states the authority to decide for themselves.
Some states moved quickly to establish regulated markets. Others took years, and some continued to prohibit or restrict sports betting.
The American Gaming Association reported that by the end of 2019, legal sports betting was available in 14 states.
This illustrates how the post-2018 system developed: legalization happened state by state.
Why did sports betting expand so quickly after 2018?
There was already strong consumer demand.
For decades, Americans had wagered on sports through illegal bookmakers, offshore operators, informal betting pools, and other channels.
Once states began creating regulated markets, bettors gained access to licensed sportsbooks, legal betting locations, and eventually widespread mobile wagering in participating states.
The American Gaming Association reported in 2019 that newly legalized markets were already generating substantial wagering activity outside Nevada.
The development of smartphone apps also made legal betting considerably easier for consumers in states that authorized online wagering.
Did online sports betting become legal everywhere after 2018?
No.
This is another common misunderstanding.
The Supreme Court decision removed PASPA’s federal barrier, but each state still had to decide whether and how to authorize sports betting.
Some states permit online and mobile betting statewide. Others restrict wagering to physical casinos, sportsbooks, or specific locations. Some states permit certain forms of sports betting while prohibiting others.
State laws can also impose restrictions on college sports, betting markets, advertising, age requirements, licensing, and tax rates.
Why was sports betting controversial before 2018?
One major concern involved the integrity of sporting events.
Critics worried that legalized sports betting could increase match-fixing, corruption, athlete manipulation, or other threats to competition.
Professional leagues also argued that widespread sports betting could create risks involving players, coaches, officials, and other participants.
Supporters of legalization responded that prohibition did not eliminate betting demand. Instead, they argued that a regulated market could bring betting into a monitored legal system.
The post-2018 system has therefore involved not only legalization but also regulation, integrity monitoring, responsible gambling programs, and enforcement against unlicensed operators.
What happened to the illegal betting market?
It did not disappear.
Legal sportsbooks created regulated alternatives, but illegal and offshore betting remained an issue.
The pre-2018 market was enormous, although estimates varied substantially depending on methodology. The American Gaming Association’s 2016 report estimated that Americans wagered very large amounts illegally on sports, illustrating the scale of demand that existed before widespread legalization.
The growth of regulated betting has shifted some activity into legal markets, but the existence of legal sportsbooks does not automatically eliminate unregulated gambling.
Was betting on fantasy sports the same thing?
Not necessarily.
Daily fantasy sports and traditional sports betting have been regulated under different legal frameworks, and the distinction became especially important as sports wagering expanded.
A fantasy contest generally involves selecting players or teams and competing against other participants under a contest structure. Sports betting involves wagering on an outcome or proposition connected to a sporting event.
The legal treatment of each activity has varied.
What did “legal sports betting” mean before 2018?
The phrase requires context.
A person could legally wager on sports in certain circumstances and jurisdictions before 2018. Nevada is the clearest example.
The broader point is that there was no nationwide system of legal, regulated sports betting comparable to the market that developed after PASPA was overturned.
Before 2018, most states could not simply pass a law establishing a traditional sports-betting market because PASPA restricted state authorization.
After 2018, states could make that decision themselves.
Frequently Asked Questions
Was sports betting illegal in the United States before 2018?
Not everywhere. Sports betting was legally available in certain forms and jurisdictions, most notably Nevada. PASPA, enacted in 1992, generally prevented most states from authorizing sports betting.
What law made sports betting difficult to legalize before 2018?
The Professional and Amateur Sports Protection Act, or PASPA, was the major federal restriction.
Did the Supreme Court legalize sports betting?
Not directly. In Murphy v. NCAA, the Supreme Court struck down PASPA. States were then able to decide whether to authorize sports betting under their own laws.
When did sports betting become legal in the United States?
There was no single nationwide legalization date. The major legal turning point was May 2018, but states subsequently legalized sports betting at different times.
Was Nevada the only state with legal sports betting before 2018?
Nevada had the most extensive traditional sports-betting market. Delaware, Montana, and Oregon also had qualifying forms of sports wagering that were grandfathered under PASPA.
Why did states legalize sports betting after 2018?
States had several reasons, including consumer demand, potential tax revenue, regulation of an existing market, and competition with neighboring states.
Conclusion
So, was sports betting illegal before 2018? The best answer is not everywhere, but it was heavily restricted across most of the United States.
PASPA, enacted in 1992, prevented most states from authorizing sports betting, while a small number of jurisdictions retained qualifying forms of wagering. The Supreme Court’s 2018 decision in Murphy v. NCAA struck down PASPA’s restrictions, allowing states to decide whether to establish regulated sports-betting markets.
That decision did not create one nationwide sports-betting system. Instead, it began the state-by-state legalization era that continues to shape American sports gambling today.