Legal Over Under Betting in the US: State Laws and Tax Rules

Legal over under betting is available in approximately 39 states plus Washington DC, but only about 32 of those permit statewide online and mobile wagering as of 2026. Placing a totals bet legally means using a state-licensed sportsbook — not an offshore site — and understanding that winnings are federally taxable income regardless of amount.

How Did Sports Betting Become Legal in the US?

The Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) on May 14, 2018 in Murphy v. NCAA. That ruling returned sports-betting authority to individual states. Each state then had to pass its own legislation before operators could launch.

The rollout has been uneven. North Carolina launched online sportsbooks on March 11, 2024 with up to 12 operators authorized. Vermont launched January 11, 2024 with three. Missouri went live in December 2025 under voter-approved Amendment 2.

Which States Allow Online Over Under Betting Right Now?

The short list of states with no legal sports betting at all includes Texas, California, Utah, Idaho, Hawaii, Alaska, Alabama, Georgia, Minnesota, South Carolina, and Oklahoma. California voters rejected both Prop 26 and Prop 27 in November 2022, leaving online betting illegal there.

Some states operate under partial or restricted models. Mississippi allows app-based wagering only on-site at a licensed casino — fully mobile wagering is not available statewide. Montana limits betting to lottery terminals and a state-authorized app at approved locations. Florida mobile sports betting is restricted to Hard Rock Bet under the Seminole tribal compact, upheld in 2025.

For the full picture by state, see the state-by-state legal status of over under betting in 2026.

What Age Do You Need to Be to Place an Over Under Bet?

Most US states require bettors to be 21 or older. Illinois sets the minimum at 21+. A handful of states allow 18+, but the majority follow the 21+ standard. Always verify the minimum age in your state before signing up. Must be 21+ (18+ in some states). Gambling problem? Call 1-800-GAMBLER.

Do You Pay Taxes on Over Under Bet Winnings?

Yes — all gambling winnings, including totals payouts, are federally taxable income. This applies whether or not you receive a W-2G form from the sportsbook.

A W-2G is issued when net winnings exceed $600 and are at least 300 times the wager. Federal withholding at 24% kicks in when net winnings exceed $5,000 and also clear the 300× threshold. Backup withholding is also 24% if the bettor fails to provide a valid Tax Identification Number.

Starting with tax year 2026, the W-2G reporting threshold rises to $2,000 under the 2025 federal tax bill. That same bill caps the gambling-loss deduction at 90% of winnings for itemizers. Per the IRS Instructions for Forms W-2G and 5754 (Rev. January 2026), bettors should retain wagering tickets, bank records, and all W-2G forms as supporting documents.

Note that welcome-bonus funds count toward net earnings in the operator's tax calculation — they are not free money from a tax perspective. For a deeper breakdown, read about W-2G thresholds and federal tax rules for over under winnings in 2026.

Which Sportsbooks Are Licensed to Offer Over Under Bets?

DraftKings and FanDuel together hold roughly 70% of US online sports-betting handle and are licensed across the majority of legal states. Other major licensed operators include BetMGM, Caesars Sportsbook, ESPN BET, Fanatics Sportsbook, bet365, BetRivers, Underdog Sports, and Hard Rock Bet.

Colorado has up to 30 licenses with 20 currently active; Arizona has 17 active sportsbooks; Illinois has up to 26 licenses. North Carolina's active books include bet365, BetMGM, DraftKings, ESPN BET, Fanatics, FanDuel, Underdog Sports, and Caesars.

Only use operators licensed in your state. Check the verified list of licensed US sportsbooks for over under bets by state before depositing. For side-by-side operator comparisons, see the best sportsbooks for over under bets ranking.

Quick Reference: Key Legal and Tax Thresholds

Understanding how -110 odds affect your actual payout is the first step toward calculating your tax exposure accurately. And if you want to reduce the vig you pay — and thus the gross amount subject to tax — look into reduced-juice totals at -105, which cuts the book's hold roughly in half compared to the standard line.