College sports betting has become an integral part of the sports wagering industry in the United States. Since the Supreme Court’s 2018 decision to overturn the Professional and Amateur Sports Protection Act (PASPA), states have been granted the authority to legalize and regulate sports betting.
This has led to a patchwork of laws across the country, with some states permitting comprehensive betting on college sports and others implementing various restrictions.
The Legality of College Sports Betting in the USA
In the United States, sports betting regulations vary significantly by state. As mentioned on this gambling legality-related website, while some states allow unrestricted betting on college sports, others have introduced limitations, such as prohibiting bets on in-state college teams or banning proposition bets involving individual athletes.
Compliance with state-specific regulations is crucial for legal and responsible betting.
Arkansas: No Restrictions on College Sports Betting
In Arkansas, voters approved Issue 4 in November 2018, amending the state constitution to allow casino gaming and sports betting. The Arkansas Racing Commission oversees the state’s sports betting activities, which include betting on college sports without specific restrictions.
Betting on college sports, including games involving Arkansas-based college teams, is fully permitted. Arkansas does not impose specific restrictions on in-state collegiate events or athletes, unlike many other states.
This unrestricted approach has contributed to the steady growth of sports betting in the state, especially among fans of local college teams such as the Arkansas Razorbacks. The absence of prohibitions on in-state betting reflects Arkansas’s intention to create an inclusive and competitive betting market.
Colorado: Limited to Non-Prop College Bets
Colorado legalized sports betting in November 2019 through Proposition DD. The Colorado Division of Gaming regulates the market.
Bettors can wager on college sports, but prop bets on individual college athletes are not permitted.
Colorado allows betting on college sports, but with one notable exception: proposition bets on individual athletes are prohibited. This restriction is designed to maintain the integrity of amateur athletics while still allowing fans to engage with the broader college sports betting market.
The state’s approach strikes a balance between accessibility and ethical considerations. Bettors can wager on in-state and out-of-state college teams, including popular programs like the University of Colorado Buffaloes and the Colorado State Rams.
This inclusive framework has made Colorado a prominent hub for sports betting activity in the Rocky Mountain region.
Indiana: Restrictions on Prop Bets for College Athletes
Indiana became a sports betting state in May 2019 when House Bill 1015 was signed into law. Regulated by the Indiana Gaming Commission, sports betting in Indiana includes college athletics, although in-play proposition bets on individual college athletes are prohibited.
College sports betting is a significant component of Indiana’s robust sports wagering market. Bettors can place wagers on games involving Indiana-based college teams, such as the Indiana Hoosiers and Notre Dame Fighting Irish.
However, the state has restricted in-play proposition bets involving individual college athletes. This limitation aims to safeguard the integrity of college sports while still offering a wide range of betting options.
Indiana’s regulatory framework has been praised for its clarity and effectiveness, contributing to the state’s reputation as a model for sports betting legislation.
Iowa: Prop Betting Prohibited for College Sports
In Iowa, Senate File 617 was enacted in May 2019, legalizing sports betting under the Iowa Racing and Gaming Commission’s jurisdiction. College sports betting is allowed, but bettors cannot place proposition bets on individual players.
Wagering on college sports, including bets on in-state teams such as the Iowa Hawkeyes and Iowa State Cyclones, is permitted in Iowa.
However, the state prohibits proposition bets on individual college athletes. This restriction is intended to prevent undue pressure on amateur players and uphold collegiate athletics' integrity.
Iowa’s sports betting market has experienced consistent growth, driven in part by the popularity of college sports in the state.
The regulatory framework balances between accessibility for bettors and protection for student-athletes.
Kansas: Open College Sports Betting Market
Kansas legalized sports betting in May 2022 through Senate Bill 84. Regulated by the Kansas Lottery and the Kansas Racing and Gaming Commission, sports betting includes college athletics, with no restrictions on in-state teams or specific bet types.
Kansas has adopted a liberal approach to college sports betting, allowing wagers on in-state and out-of-state teams without significant restrictions.
Bettors in Kansas can place bets on college teams such as the Kansas Jayhawks and Kansas State Wildcats, both of which have passionate fan bases.
The state does not impose limitations on proposition bets or in-play wagers for college sports, setting it apart from some neighboring states.
This unrestricted environment has positioned Kansas as an attractive destination for sports bettors, particularly those interested in college athletics. The state’s comprehensive and user-friendly regulations have contributed to the rapid expansion of its sports betting market.
Kentucky: No Restrictions on College Sports Wagering
Kentucky legalized sports betting in March 2023 by signing House Bill 551. The Kentucky Horse Racing Commission oversees the sports betting market, where wagering on college sports is permitted without limitations.
College sports betting in Kentucky is fully permitted, with no restrictions on in-state teams or specific bet types.
This inclusive approach allows fans of local programs like the Kentucky Wildcats and Louisville Cardinals to engage fully with the betting market. Kentucky’s decision to adopt a straightforward and unrestricted framework reflects the state’s commitment to creating a competitive and appealing sports betting environment.
The legalization of sports betting has also generated substantial revenue for the state, further cementing its role as a significant player in the sports wagering industry.
Louisiana
Louisiana’s journey toward legalized sports betting began with the 2020 elections, where voters in 55 of the state’s 64 parishes approved sports wagering.
This approval led to the enactment of legislation in June 2021, signed by Governor John Bel Edwards, establishing the regulatory framework for sports betting in the state.
The Louisiana Gaming Control Board oversees sports betting operations, ensuring compliance with state laws and regulations. The state offers both retail and online sports betting options, providing residents with convenient access to wagering platforms.
Louisiana has experienced significant revenue growth in its sports betting market. According to the American Gaming Association’s “State of the States 2023” report, the state generated substantial revenue from sports betting activities, contributing to its economy and tax revenues.
Michigan
Michigan’s path to legalized sports betting culminated on December 20, 2019, when Governor Gretchen Whitmer signed HB 4916. This legislation authorized retail and online sports betting, with retail sportsbooks launching in March 2020 and online platforms going live on January 22, 2021.
The Michigan Gaming Control Board (MGCB) regulates sports betting in the state, ensuring fair play and adherence to legal standards. Michigan’s sports betting market is robust, featuring various operators and platforms catering to a diverse audience.
Financially, Michigan’s sports betting industry has significantly contributed to state revenues. The state has reported substantial monthly handles and revenues, reflecting the market’s growth and the population’s engagement with sports wagering.
Mississippi
Mississippi was among the first states to embrace sports betting following the Supreme Court’s decision to overturn PASPA in 2018. The state legalized sports betting in August 2018, with the Mississippi Gaming Commission as the regulatory authority.
Mississippi’s sports betting market is unique in permitting only in-person wagering at licensed casinos; online sports betting remains illegal. This limitation has influenced the market’s dynamics and revenue potential.
Despite these restrictions, Mississippi’s sports betting industry has generated notable revenues. The state’s monthly reports indicate consistent performance, contributing to the state’s gaming revenue and economic activity.
Nevada
Nevada has a long-standing history with sports betting. It was the only state with legal sports wagering prior to the repeal of PASPA. The Nevada Gaming Control Board regulates the industry, maintaining strict oversight to ensure integrity and compliance.
The state’s sports betting market is extensive, with numerous sportsbooks operating within casinos, offering a wide range of betting options. Nevada’s experience and established infrastructure have made it a leader in the sports betting industry.
Financially, Nevada’s sports betting industry has consistently reported high revenues. The state’s monthly gaming reports highlight the significant contributions of sports wagering to the overall gaming revenue, underscoring its importance to Nevada’s economy.
New Mexico
New Mexico’s approach to sports betting is distinct, as it operates under tribal gaming compacts rather than state legislation.
In October 2018, the Santa Ana Star Casino & Hotel became the first venue in the state to offer sports betting, leveraging existing agreements that permit Class III gaming activities.
The New Mexico Gaming Control Board oversees gaming activities, including sports betting conducted by tribal casinos. The state’s sports betting market is limited to in-person wagering at these tribal establishments, with no provisions for online betting.
Revenue data for New Mexico’s sports betting market is less publicly available compared to other states.
But adding sports betting has made tribal casinos more money, which helps them stay financially strong and provide better services to their communities.
North Carolina
North Carolina’s journey into sports betting began with the passage of Senate Bill 154 in July 2019, which Governor Roy Cooper signed into law.
This legislation authorized sports wagering exclusively at two tribal casinos operated by the Eastern Band of Cherokee Indians: Harrah’s Cherokee Casino Resort and Harrah’s Cherokee Valley River Casino. These venues began accepting sports bets in March 2021.
A significant expansion occurred on March 11, 2024, when online sports betting was legalized statewide, allowing residents to place bets via mobile and desktop platforms.
This development led to a substantial increase in betting activity. In the first two months following legalization, from March 11 to April 30, 2024, over $1 billion was wagered, resulting in approximately $30.9 million in state tax revenue.
North Dakota
In North Dakota, sports betting is available exclusively at tribal casinos. The Dakota Magic Casino, operated by the Sisseton-Wahpeton Oyate tribe, began offering sports betting in 2021 under existing Class III gaming compacts. Efforts to expand sports betting statewide have faced challenges.
In 2021, a bill proposing a statewide referendum on sports betting passed the House but narrowly failed in the Senate. As a result, sports betting remains limited to in-person wagering at select tribal casinos, with no legal online or mobile betting options available.
West Virginia
West Virginia was among the early adopters of sports betting following the Supreme Court’s 2018 decision to overturn PASPA. The state legalized sports wagering in March 2018 by passing the West Virginia Sports Lottery Wagering Act. The West Virginia Lottery Commission oversees the industry, ensuring compliance and integrity.
West Virginia permits both retail and online sports betting. The first retail sportsbooks opened in August 2018, and online platforms launched shortly after that.
The state has seen consistent growth in its sports betting market. In the fiscal year 2023, West Virginia reported a total sports betting handle of approximately $518 million, generating around $4.5 million in tax revenue for the state.
Wyoming
Wyoming entered the sports betting arena with the passage of House Bill 133 in April 2021, which Governor Mark Gordon signed into law.
This legislation authorized online-only sports betting, making Wyoming one of the few states to adopt a mobile-centric approach.
The Wyoming Gaming Commission regulates the industry, issuing licenses to operators and ensuring compliance with state laws.
The first online sportsbooks launched in September 2021, allowing residents to place bets via mobile devices and computers. Wyoming’s sports betting market has shown steady growth. In its first full year of operation, the state reported a total handle of approximately $200 million, resulting in around $2 million in tax revenue.
States with Restrictions on College Sports Betting
Several states in the United States allow sports betting but impose restrictions on wagering involving college sports. These limitations are often introduced to protect the integrity of amateur athletics and reduce the potential for undue influence on student-athletes.
In numerous instances, states prohibit betting on in-state college teams or events, shielding local athletes from additional scrutiny.
For example, in some states, such as New Jersey and Virginia, residents are barred from placing bets on games involving in-state college teams or tournaments held within the state.
Other states take a more nuanced approach, allowing betting on college games but restricting specific types of wagers.
In Illinois, for instance, bets on in-state college teams are allowed only at retail sportsbooks, with online platforms prohibited from offering these options.
Similarly, Colorado and Iowa prohibit proposition bets on individual college athletes, such as betting on the number of points scored or specific in-game performances, to minimize the risk of unethical behavior or pressure on student-athletes.
These restrictions reflect a cautious approach to integrating college sports into the broader sports betting landscape.
While they may limit the betting options available to residents, they underscore a commitment to maintaining the integrity of collegiate athletics and addressing concerns unique to amateur sports.
Financial Prospects from Legalization of College Sports Betting
The legalization of college sports betting, even in states with restrictions, has delivered substantial financial and economic benefits, showcasing its potential as a key driver of state revenue.
The numbers indicate that states with these restrictions still thrive, leveraging the popularity of college sports betting to generate significant economic activity.
In New Jersey, where betting on in-state college teams or events is prohibited, the state’s sports betting market remains a national leader. In 2023 alone, New Jersey reported a total sports betting handle exceeding $10 billion, with an estimated 20% of wagers—over $2 billion—placed on college sports.
Tax revenues from sports betting in New Jersey reached $110 million for the year, a significant contribution to state programs, including education and infrastructure.
The absence of bets on in-state college teams has not hindered growth, as bettors continue to engage heavily with out-of-state collegiate events.
Illinois, another state with restrictions, allows betting on in-state college teams only at retail sportsbooks while prohibiting online wagers for such teams.
Despite this limitation, Illinois saw a record-breaking sports betting handle of $1.14 billion in March 2023, with approximately $230 million attributed to college sports. The state collected $14 million in taxes from that single month.
Annually, Illinois generates over $125 million in tax revenue from sports betting, underscoring the significant economic impact even with limited options for in-state collegiate wagers.
Colorado, which bans proposition bets on individual college athletes, also demonstrates financial solid performance. In 2023, the state reported a total sports betting handle exceeding $6.6 billion, with college sports accounting for roughly 18%—around $1.2 billion.
Tax revenue from sports betting in Colorado totaled $29 million for the year. The restriction on individual player prop bets has had minimal financial impact, as bettors continue to wager on game outcomes and broader collegiate events, driving economic activity across the state.
Similarly, New Jersey attributes thousands of jobs to its thriving sports betting ecosystem, which contributes over $1.5 billion annually to the state’s economy when including indirect economic activity like advertising and consumer spending.
Even in states like Virginia, where betting on in-state college teams is prohibited, the economic benefits are notable. Virginia reported a $5.1 billion handle in 2023, with college sports contributing an estimated $1 billion.
Tax revenue from sports betting in Virginia reached $52 million for the year, reflecting the demand for wagering on out-of-state collegiate events.
