The Takeaway: Stop Saying Sports Betting Is Only Legal In 39 States
The truth is it's now legal in 50 states, until further notice, and that's before we add more complexity. Gambling news roundup: Suspended MLB players return; Louisiana, RI sports betting updates.
Every Thursday in The Takeaway, The Closing Line provides commentary on trends and news in the gambling industry.
This headline in The Atlantic is like a lot of pieces we have seen in recent months and years: “America's Newest Gamblers Are Playing a Dangerous Game.” (It’s paywalled, for what it’s worth.)
Here’s the first passage:
Gambling has swallowed American sports culture whole. Until early 2018, sports betting was illegal under federal law; today, it’s legal in 39 states and Washington, D.C.
Let me stop you right there: WRONG.
Right now, as we sit here, it’s legal in all 50 states. States can send cease-and-desist letters and we can have a very lively argument about whether sports event trading via prediction markets should be legal. But as I write this on June 5, 2025, sports betting is legal nationwide, at least until a federal court or the Commodity Futures Trading Commission tells Kalshi et al to stop. Don’t believe me? Let’s see what Kalshi says about it:
Any serious discussion about the current state of sports betting in the United States needs to talk about this reality from the jump. It’s no longer in just 39 states; even that is a bit misleading because statewide online sports betting is not legal in all those places. Meanwhile, you and I can place moneyline, futures and other sports bets on our phones via federally regulated prediction markets from Oregon to Maine.
I’ll give The Atlantic credit: It at least mentions the presence of sports event contracts via Kalshi and Robinhood in the discussion. Most other people and outlets ignore them or are oblivious to their existence. It feels like almost everyone is stuck in the distant past of :checks notes: 2024, before Crypto.com and Kalshi launched us into a brave new world of sports betting.
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And this goes far beyond just Kalshi and prediction markets. I could drive a few hours south to California — where sports betting isn’t legal — and gamble on sports in any number of ways.
I could make a purchase at a variety of sweepstakes sportsbooks and place a wager on almost any sports event with sweeps cash.
I could make a deposit at dozens of fantasy pick’em apps and parlay player performances for money.
I could bet at a variety of offshore and crypto sportsbooks.
You can make an argument about the legality of these things (offshore clearly is illegal), and you cannot like that they exist. But until someone says they can’t do it or makes them stop, this is reality. For instance, here’s an affiliate that works in the regulated online gambling space offering all these options on a page about legal California sports betting:
There are a dozen options offered on the page, linking to operators in the above categories (not including offshore). That’s not even close to an exhaustive list, either. (If you were to keep scrolling down you would get to Kalshi, too.)
Here’s my point: Any discussion about gambling harm, game integrity, harassment of athletes, policymaking about sports betting, etc. needs to take into account the new normal. That normal: There’s nothing material stopping you or me from gambling on sports in almost any state at apps and sites that aren’t technically or legally “sports betting.” The new normal is a complex picture that includes more than just state-regulated sportsbooks.
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Gambling news roundup
They were suspended for betting on baseball. Now their teams are welcoming them back (The Athletic): “A year after Major League Baseball suspended four players for betting on baseball, the sport now finds itself in the unusual situation of bringing the group back to the field — and their teams seem ready to welcome them back. Relievers Andrew Saalfrank and Michael Kelly, starter Jay Groome and infielder Jose Rodriguez were suspended for a calendar year on June 4, 2024, for violating Rule 21, which prohibits betting on baseball. Infielder Tucupita Marcano was also banned from the sport that day for betting more than $150,000 on baseball, including bets on Pittsburgh Pirates games while on their roster.”
Sports Betting Alliance President Kudon Unloads On ‘Insane,’ ‘Insidious’ And ‘Unprecedented’ Tax On Sports Wagers (InGame): “Sports Betting Alliance President Jeremy Kudon provided a behind-the-scenes look at how he and his clients, during the previous weekend, learned about the potential ratification of a novel new tax from Illinois lawmakers aimed primarily at squeezing more from SBA member companies FanDuel and DraftKings. If Gov. JB Pritzker indeed signs the budget bill, licensed Illinois sportsbooks will have to pay a $0.25 levy on each of their first 20 million wagers accepted during the fiscal year. And for the volume of wagers beyond 20 million, the surcharge will increase to $0.50 per wager, making the effective tax rate at or above New York’s 51% on gross gaming revenue. … ‘The anger is palpable, and I think that the anger remains palpable with my clients,’ said Kudon, who is also a partner in the law firm Orrick’s public policy group. ‘And the industry in general, it’s one of those unifying moments. I’ve heard from people that sometimes we compete with, people in state legislatures, some folks that we’re not always aligned with, and the sentiment is ‘Wow, this is insane.’”
Rhode Island Lawmakers Considering Sports Betting Expansion (Sports Betting Dime): “The Rhode Island Senate has taken a large step towards potentially expanding Little Rhody’s online sports betting market in 2026. Members of the Senate Wednesday afternoon approved SB 748, a bill to expand the state’s online sports betting from one operator to potentially a maximum of five, by a 30-3 vote.”
Louisiana Wagering Tax Raise On Senate Agenda For Sunday (In Game): “A proposal that would raise the digital sports betting tax in Louisiana from 15% to 21.5% is scheduled for a third reading and final passage in the Louisiana Senate Sunday. HB 639 passed out of the House May 20, and this week began a consistent march toward the Senate floor. The Louisiana legislature is set to adjourn June 12.”
What would the proposed Ohio sportsbook handle tax look like? (SBC Americas): “State sportsbooks currently pay 20% on gross revenue with no promotional credit deductions. Blessing’s framework would tax 2 percent on handle minus the federal excise tax. The total handle amount would include promotional credit but not voids. This new tax from a state that already doubled the sports betting tax rate since launch would be bad news for every Ohio operator, but would some operators feel the pain more than others? SBC Americas looked at the most recent month of revenue from Ohio sportsbooks and calculated how the proposed handle tax would impact each operator. The results not only reflected a substantial uptick in total taxes paid, but a framework that put a greater financial burden on sportsbooks with lower hold. In fact, were the proposed tax implemented on April returns, two operators would have been required to pay substantial sums of taxes despite posting no revenue in the month.”
Crypto.com points to Kalshi verdicts in new Nevada lawsuit (SBC Americas): “Derivatives exchange Crypto.com has walked in Kalshi’s footsteps by filing a lawsuit in federal court against Nevada’s gaming regulator regarding sports contracts. The suit, which was filed in the U.S. District Court for Nevada on Tuesday, names Nevada Gaming Control Board (NGCB) Chairman Kirk Hendrick and other board officials as defendants. Crypto.com | Derivatives North America (CDNA) seeks a permanent injunction against the NGCB, arguing that the board is over-stepping its bounds by trying to shut down Crypto’s sports contracts.”
Kalshi Secures Court Win As Judge Rejects Nevada’s Motion To Dismiss Lawsuit (InGame): “A federal court has rejected the state of Nevada’s motion to dismiss a lawsuit filed by Kalshi against the state in the latest legal win for the prediction market. The decision, from the U.S. District Court for the District of Nevada, means Kalshi will — at least for now — be able to keep offering its controversial sports event contracts in Nevada, though the court is still yet to make its final ruling on the ultimate merits of the case.”
DraftKings, UFC drop new responsible gaming advertisements: Watch below.
Illinois Gaming Board Chairman Schmadeke Steps Down (Casino Reports): “Charles Schmadeke, who oversaw one of the largest multiple-gaming-vertical expansions in the United States over the last six years, announced Thursday he is stepping down as chairman of the Illinois Gaming Board effective July 1. Schmadeke made the announcement at the outset of the open session of Thursday’s scheduled IGB meeting, saying he ‘advised Governor [JB] Pritzker that after two terms it is time for me to call it a day.’”
Trusted Voices: Conversations About Betting is designed to equip adults, including parents and coaches, with tools and resources to talk to young people about gambling, including information on warning signs, risks and proxy betting. The program is led by retired professional basketball player Randy Livingston and his wife, basketball agent Anita Smith, who share their personal stories related to problem gambling, with the hope of preventing others from experiencing similar harms. Learn more and join the conversation here.
Wow, every time I feel like I am getting closer to seeing things your way, the further away I get. You are not wrong, but since you are using Meme's to tell people to stop, I feel I can bring some heat and truth. How about this to start: It's been 7 years since PASPA was overturned. The industry, LEGAL industry, has spent Hundreds of Millions of Dollars on Lobbyists. They LEGALLY have generated $40 Billion in Incremental Revenue. How much on studies to take a look at the fastest and largest expansion of gambling in World History???? $0.0 Gross and unacceptable. Yeah, let's publicly decry a magazine article but crickets on the industry's lack of usable data.
Ok, well at least the Responsible Gaming Orgs will run studies, right? Responsible Online Gaming Association: ROGA. Also known as professional conference attendees who bring up old data and lack of lived experience. They surely would step up and do one, right? No, why, they get $20 Million from the Gambling Industry to come up with puff prevention programs that woo regulators. That's a $20M checked box, nothing else.
All it does is delay more funding, resources, programs as people continue to get addicted at alarming rates. The Gambling Industries current stance relies on scum of the earth iGaming lobbyists to slither into state capitols with unlimited expense accounts, zero morals and sheep for an audience. Suggesting to lawmakers that those who oppose expansion are telling you lies.
How about standing on facts....one, just one. Ohio, a decision to make in 4 weeks or less. Their range for potential tax revenue ranges from $300M to $900M - you can't be serious. Ok, either way that's a lot of money but what will the impact be on addiction? Scott Ward, Sports Betting Alliance, NONE. HE TOLD A COMMITTEE WHILE TESTIFYING THAT THERE WILL BE NO IMPACT! At least Ohio is firm on their license fees? They're not? They must be firm on how many licenses and who get them? They're not? They have to be sure about the tax rate they are going to charge? They're Not? Is this even legal according to their constitution? You don't know? Well can we at least amortize the license fees? Maybe. Is your state ready to take on the added stress to the system? They're not? Sounds like another committee meeting might get this ALL cleaned up. Meanwhile, Dustin is worried about Kalshi and a magazine article.
How about taking a stand that not a single gambling company dollar has gone into a non-partisan, respected study to take a look at Cannibalization? Black Markets? Underage Gambling? Addiction Rates? Suicides, Bankruptcies, Divorces, Domestic Violence Cases? How about that Dustin? What does that have to do with your article...everything. Sarcastically preaching to everyone that before they can have an opinion on Legal Gambling impact on Gambling Harm - we must admit that Illegal gambling exists in all 50 states is so utterly dumb.
Pinnacle and Bovada have been around since before you were born. Everyone, that wanted one, had a bookie or knew of one. So, before you tell others how they should correct their way of thinking - you should have included that fact - it has been and will be around forever, in all 50 states. Also, if you weren't going to bring Responsible Gambling into the argument I also would have kept going - but you did.
As they say, you are entitled to your opinion, but you aren't entitled to your own facts. Gambling Addiction is spiking because of LEGAL expansion of Sports Betting and iGaming. Legal. Full stop! Again, if you want to scream about the fact that there is gambling in all 50 states right now, that is fine, and true. If you want call the article headline a myth, fine. Their point however is an important one and it's true. Legal expansion = More Addiction. I am not against gambling expansion, but until those who control it, admit that they are significantly raising addition percentages, and have a serious plan to address it, get the hell out of here. Everyone of you.
But to even remotely suggest that I can't claim gambling harm impact is increasing at an alarming pace due to the expansion of LEGAL sports betting and iGaming is absurd and you can't be taken seriously. You remind me of the know-nothing legislator that said "It's only 1%-2% of the population and they are all the one's playing in the illegal market already. Might as well legalize it, tax it and provide the support." Oh, ok, that argument again?
Really, do you think all people who are addicted to Fentanyl or Heroin first tried it at the actual Crack House? If you bring it into people's lives it increases the odds of trial. I can't stand black market gambling but it has existed forever AND IT IS GROWING. How about DraftKings going from $350M in 2019 to $4.77BILLION in 2024? Just people moved over from the black market? Really, Dustin?
Ok, Ohio, by legalizing iGaming how much tax will you generate? You have a $600M spread in projections? Wow. Ok, you must know the impact of addiction and have talked it over with the head of Responsible Gaming for your state, right? Wait, he is saying they can't keep up with Sports Betting let alone throwing in iGaming? That's awkward. Finally, you must really believe in making sure people get proactive care by the gambling companies that they won't get from the illegal market? Oooh, again, not so much. Pinnacle has a better payout reputation than many legal bookies.
Instead, because one dork from Boston in 2012, who couldn't play sports, figured out a way to put fantasy sports online. Now all of a sudden he is being slighted by new, illegal threats? Was DraftKings legal from 2012 until 2016 when it was finally legalized? Very debatable. That's who we are worried about? A guy that used a loosely interpreted 2006 law to just decide they can run their business because they said so? Does that sound familiar? The guy that generated $4.77 BILLION last year alone. That's who we are worried about?
Argue about Sweeps and Kalshi and Robinhood and Prize Picks and Skill Games and Bingo and Office Squares and Fantasy Leagues and the "26 live illegal sites that you can get on right now, while on the toilet, in Utah, without WiFi service and most importantly nobody to intervene (as if the gambling company's care). You're right it's happening.
Guess what? Take all of the illegal gambling that exists this very minute and put it to the side. Now let's do the 39 states and DC for LEGAL Sports Betting and the 7 states with LEGAL iGaming - that's it. Just that pool. GAMBLING ADDICTION IS SPIKING AND RESPONSIBLE GAMING CANNOT REMOTELY KEEP UP! Is that a true or false statement?
So insanely stupid and an extreme lack of the truth. One Ohio legislator said when talking about a casino on every phone: "If I don't want to smoke cigarettes I won't carry cigarettes." REALLY - that's your stance? $3 Billion a year on advertising LEGAL gambling doesn't make a difference? The fact that young men are experiencing generational damage doesn't make a difference? The young person's brain doesn't fully develop until they are 25 doesn't matter? Just don't do it? That's your position? In the year 2025, for anyone in authority or elected by human beings to frame gambling addiction as a bunch of lowlifes on illegal gaming sites who don't have any will power. SCREW OFF!
You have no idea the size of the black market in any state at the moment and you don't have a clue about societal ills costs vs tax revenue. None.
You are joining the clown car of deniers? Hey Everyone, Dustin is now consulting for Massachusetts. What do you think the chances are that he encourages them to legalize iGaming because people are playing it illegally anyway? I would say based on this utter gibberish the chances just went up pretty high.
The pure irony of you calling out an article on gambling addiction related to the expansion of legal sports betting is crazy. Why don't you mock information coming from a non-partisan gambling impact study? Oh, because you can't. It doesn't exist and that is no accident. Good luck Massachusetts, great hire.