- PASPA was repealed seven years ago, with legal sports betting having transformed from a curiosity into a half-trillion-dollar industry.
- What began as a fight over states’ rights has gone from taboo to mainstream, reshaping how Americans watch, bet, and engage with sports.
- With $50 billion in sportsbook revenue and $8 billion in taxes, the impact of legalized betting reaches far beyond mobile apps.
WASHINGTON – Seven years ago, the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA), a 1992 law that had banned sports betting in most of the United States. With the May 14, 2018, decision, the Court ruled in Murphy v. NCAA that PASPA violated the Tenth Amendment, clearing the way for states to regulate legal sports betting however they saw fit.
The US sports betting industry has grown from a niche activity into a half-a-trillion-dollar juggernaut, reshaping how fans engage with sports and how states fund their futures. From mobile apps to Super Bowl betting lounges, the repeal of PASPA has left an indelible mark.
In the immediate aftermath of PASPA’s repeal, a handful of states moved quickly. New Jersey, which brought the lawsuit, launched legal betting within weeks. By 2025, the number of states with legal sports betting had ballooned to 39 states plus Washington, D.C., each with their own rules and quirks.
Breaking Down The Financials
New York saw explosive growth, generating more than $3 billion from wagers for the state from nearly $65.4 billion bet on sports.
Though the landscape is uneven, the numbers speak for themselves. Earlier this month, LegalSportsBetting reported that the total amount of money bet on sports in the US crossed the half-a-trillion milestone since this time seven years ago.
From this, US bettors have won over $450 billion back, with sportsbooks keeping roughly $50 billion before paying about $8 billion in taxes.
But the industry’s reach extends beyond tax receipts. Tens of thousands of jobs have been created from data analysts and oddsmakers to customer service reps and retail clerks. Entire tech ecosystems have emerged around mobile sports betting apps, spurring investment and innovation.
Technological Expansion Helps Online Betting, Acceptance
If PASPA’s repeal opened the floodgates, smartphones turned the stream into a tidal wave. Today, more than 85% of all legal wagers are placed online with legal online sportsbooks building empires on apps that offer everything from same-game parlays to real-time cash-out options.
Live, in-game betting, which was once a novelty, is now standard as artificial intelligence models adjust odds and offer personalized suggestions.
Even sports leagues, once wary of betting, now embrace it. The NFL, which sued New Jersey over betting in 2012, approved in-stadium betting lounges in 2020. Further, partnerships between pro sports leagues and operators are ubiquitous: the NBA collaborates with FanDuel, while Allegiant Stadium’s betting kiosks were the talk during Super Bowl LVIII in 2024.
But innovation hasn’t come without concerns. Operators have invested heavily in cybersecurity and responsible gambling tools (like self-exclusion programs, time limits, and spending caps), though critics say more can be done.
Cultural and Entertainment Shifts
Media and entertainment have pivoted to capitalize. Betting-focused shows dominate sports networks, and fantasy sports apps integrate wagering features. Sportsbooks sponsor arenas, appear on jerseys, and are all over social media feeds.
Even the NFL’s stance on sports betting proves they have embraced it, from banning Vegas events in 2015 to hosting Super Bowl LVIII there.
This mainstreaming has deepened fan engagement. Viewership for marquee games often spikes in legal betting states, and fans are more likely to follow multiple teams or leagues if wagers are involved.
While advertising reflects this shift, critics, including problem gambling advocates, warn of over-saturation.
Challenges and Controversies
PASPA was originally passed in part to protect sports integrity. That concern hasn’t gone away.
While no major league game-fixing scandals have emerged post-repeal, several athletes (especially in college sports) have faced suspensions for violating betting rules. The NCAA, NFL, and NBA have ramped up education and monitoring efforts, using third-party firms like Sportradar to detect suspicious patterns.
However, the NCAA lifted its betting ban, stating that compliance and policing are too difficult. In reality, roughly 15% of Division III male athletes bet on sports while 2% to 8% of Division I male athletes do, according to an NCAA report.
Problem gambling is another pressing issue. While the vast majority of bettors play responsibly, problem gambling rates have risen in some states. Hotlines report increased call volume, and advocacy groups warn of a lack of treatment access in rural or underserved communities as well as states making enough money to treat this.
Since 2018, the National Council on Problem Gambling estimated a 30% rise in betting-related addiction calls.
However, there are legal uncertainties in fixing this. The Wire Act of 1961 still hampers interstate pooling of betting funds. While federal oversight has been proposed, it remains politically contentious, especially with states guarding their newfound revenue streams.
What Lies Ahead
As the seventh anniversary dawns, the industry shows no signs of slowing down and is poised for even more change. California and Texas remain the largest untapped markets and could legalize betting by 2030, adding billions more to the market.
With this, some sportsbook analysts predict the U.S. market could double in size by 2030.
What began as a legal victory for states’ rights has become a cultural and economic juggernaut in an industry that touches everything from local economies to national sports.
But with great opportunity comes great responsibility. Regulators, operators, and fans alike must grapple with the challenges of this new era.
As we reflect, the question isn’t whether sports betting is here to stay, because it is. The question is how we’ll navigate in the years ahead. Will the next seven years bring as much change as the last? If the history of sports betting in the US over the last few years is any guide, the answer is a resounding yes.
