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The U.S. sports betting landscape has dramatically changed since the Supreme Court's 2018 decision that struck down PASPA, allowing states to legalize sports betting. However, issues like underage betting and declining handles in some states remain significant concerns.
Hard as it is to believe in 2026, there was a time not long ago when it was difficult to place a legal sports bet in these here United States. If a bettor wasn’t in Nevada, they were S.O.L. That all changed eight years ago this Thursday, on May 14, 2018, with a U.S. Supreme Court decision striking down the nation’s Professional and Amateur Sports Protection Act of 1992. New Jersey had challenged the PASPA provisions preventing states from legalizing sports betting, and the sports leagues and NCAA had in turn challenged New Jersey’s law through which it intended to begin allowing wagers. In its short-of-unanimous ruling in *Murphy v. National Collegiate Athletic Association*, the high court found that PASPA violated the Tenth Amendment, which gives states any rights that are not already explicitly granted to the federal government. And that opened the floodgates. There is now a high likelihood that you live in a state where you can place a legal bet, although the two biggest states — California and Texas — remain holdouts where prospective sports gamblers are limited to use of prediction market contracts or illegal means such as offshore accounts. While sports betting isn’t allowed everywhere, it’s safe to say that through ubiquitous advertising, partnerships with the same leagues that once scorned the practice, and other means, it has become normalized in American culture to an extent that would have been unthinkable a decade ago.
Happy PASPA Day. In West Virginia we had the legislation already passed and ready to go when the ruling came down!
— Shawn Fluharty (@WVUFLU) May 14, 2026
It’s only fair to acknowledge some of the downside from the proliferation of sports betting. A new example: There are numerous cases in Connecticut of children using their parents’ DraftKings and FanDuel accounts to place bets, according to a report from *CT Insider*. State records show the children placing bets were as young as 7, the article stated. As Connecticut’s two largest sports betting operators, DraftKings and FanDuel identified more than 200 suspected instances in a 12-month period of bets being placed by individuals younger than 21, *CT Insider* reported based on records obtained through a Freedom of Information Act request. In the report, Kristofer Gilman, director of the gaming division within the Connecticut Department of Consumer Protection, credited the sportsbook operators with taking the issue seriously and using advanced technology to try to identify such instances and ban the accounts being used. The hundreds of cases reported to regulators may, however, be just a fraction of total volume of underage betting, Gilman said. The Connecticut Legislature this session approved a measure, awaiting action by Gov. Ned Lamont, that would provide penalties of up to three months in prison, a fine of up to $500, or both, for adults found to have let someone underage open a gambling account or place bets in their name.
Arizona and Colorado are slower than some of the other states in reporting their monthly sports betting figures, and their latest reports for March have something else in common: their statewide handle was down from a year prior. Arizonans wagered $836.9 million on sports in March, representing a 5.7% decline from March 2025, according to the Arizona Department of Gaming. The Colorado Department of Revenue reported that the total handle of $560.9 million was off 9.2% year-over-year. Maryland Lottery and Gaming, meanwhile, had a different story in its most recent numbers, for betting in April. The $574.2 million wagered there actually represented an 11.8% increase over April 2025.
A Pennsylvania lawmaker has filed a bill that would bring prediction markets — and their sports event contracts — under a state regulatory framework with a 20% tax rate. Under HB 2497, prediction markets such as Kalshi or Polymarket would be required to get a license from the Pennsylvania Gaming Control Board and the minimum age of their customers would be 21, similar to legal sportsbooks and three years older than what the prediction markets traditionally use. A one-year license would cost $1 million. The bill, which was referred to the House Gaming Oversight Committee, calls for the state regulator to issue temporary rules within a year if the law comes into effect, and permanent regulations within a year after that. It would be able to restrict trades on elections, military conflicts, natural disasters, and court rulings. In legislative news elsewhere, the Colorado Senate signed off Wednesday on a sports betting measure already approved by the House to ban credit card funding and push notifications. SB 131 now heads to Gov. Jared Polis for action. In Minnesota, a bill designed to make prediction markets illegal was sent to Gov. Tim Walz Thursday. *— Jill R. Dorson*
The change-of-plea hearing for Marves Fairley, who was charged in both the NBA and NCAA sports betting scandals, was postponed this week. A docket entry in the Eastern District of New York stated the hearing has been adjourned sine die, which means there is no new date set. The hearing was originally to have taken place Tuesday. Fairley has already signed documents stating he will plead guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering in the NBA case, and to bribery and wire fraud charges in the NCAA case. Fairley, who billed himself as a tout for NBA games, is one of two defendants named in both cases. *— Jill R. Dorson*
Polymarket US Fully Live Without Waitlist, Six Months After Test Launch Prediction Markets As Follow-Up To DFS: The Parallels Are Strikingly Similar Kalshi’s True Betting Handle Obscured, But It May Have Caught Up To DraftKings And FanDuel Past Is Prescient: New Mexico Tribes Make Case Congress Didn’t Intend Sports Contracts In Complaint Against Kalshi Wisconsin Federal Judge: It’s Clear Ho-Chunks Can Sue Kalshi Under IGRA Robinhood’s Exchange Rothera Self-Certifies First Prediction Market Contracts Minnesota Legislature Sends First-Of-Its-Kind Prediction Ban Bill To Governor UFC Boss Dana White Asks Trump To Dump 90% Loss Deduction Cap New Jersey Lawmakers’ Irrational Proposal Would Penalize Responsible Gamblers Lawmakers Challenge Sportsbook, Prediction Market CEOs On Youth Gambling Risks
The Supreme Court ruled in Murphy v. National Collegiate Athletic Association that PASPA violated the Tenth Amendment, allowing states to legalize sports betting.
Since 2018, many states have legalized sports betting, making it more accessible, though some states like California and Texas still do not allow it.
In Connecticut, over 200 cases of underage betting have been reported, prompting legislative measures that could impose penalties on adults enabling such activities.
A bill in Pennsylvania proposes a 20% tax on prediction markets, requiring them to obtain a license and setting the minimum customer age at 21.

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