Summary
On May 14, 2018, the U.S. Supreme Court struck down a 1992 federal statute in Murphy v. NCAA, and that single ruling quietly rewrote the rules for esports wagering across the country. Before that day, only one state offered legal...
Table of contents
- 1 How Murphy v. NCAA Redrew the Betting Map
- 2 Is Esports Betting Specifically Legal?
- 3 Where You Can Bet on Esports: A State Snapshot
- 4 The Federal Laws That Still Apply
- 5 Skin Betting and the Offshore Gray Market
- 6 How to Bet on Esports Legally in 2026
- 7 Frequently Asked Questions
- 7.1 Is esports betting legal in the US?
- 7.2 Which states allow betting on esports?
- 7.3 Do you have to be 21 to bet on esports?
- 7.4 Is it legal to bet esports with skins?
- 7.5 Are offshore esports betting sites legal?
- 7.6 Can you bet on esports in California or Texas?
- 7.7 Will more states legalize esports betting?
- 8 Related Reading
- 9 Sources
- 9.1 Further reading
- 9.2 Further reading
On May 14, 2018, the U.S. Supreme Court struck down a 1992 federal statute in Murphy v. NCAA, and that single ruling quietly rewrote the rules for esports wagering across the country. Before that day, only one state offered legal single-game sports betting. By 2026, sports betting is legal in some form in 38 states plus the District of Columbia, and most of those markets now accept bets on League of Legends, Counter-Strike 2, and Dota 2 matches. The short answer to whether esports betting is legal in the US is “yes, in most of the country,” but the longer answer depends entirely on the state line you are standing behind.
How Murphy v. NCAA Redrew the Betting Map
For decades, the Professional and Amateur Sports Protection Act, known as PASPA, blocked states from authorizing sports wagering. Congress passed PASPA in 1992 and grandfathered in a handful of states, which is why Nevada stood almost alone with full single-game betting for the next 26 years. New Jersey challenged the law, lost repeatedly in lower courts, and finally won at the Supreme Court. The justices ruled that PASPA violated the anti-commandeering principle of the Tenth Amendment, according to the official opinion published by the Supreme Court.
That decision did not legalize anything by itself. It simply handed the question back to each state legislature. Some states moved within weeks. Others took years, and a few still have not acted. Esports betting rode in on the same wave, because most state laws regulate “sports events” broadly enough to cover competitive gaming once a regulator signs off on it.

Is Esports Betting Specifically Legal?
Here is the wrinkle that trips up most new bettors. A state can legalize sports betting and still not let you wager on a Valorant grand final. State gaming regulators publish a catalog of approved events, and esports often sits in a separate column from football and basketball. If you are still learning the basics, our beginner’s guide to esports betting walks through how these markets are structured before you place a single dollar.
Nevada takes the strictest approach. Its Gaming Control Board reviews esports events on a case-by-case basis, approving individual tournaments rather than the category as a whole. New Jersey’s Division of Gaming Enforcement has approved esports betting on selected events since 2019. Colorado, Tennessee, and West Virginia fold esports into their broader online catalogs with fewer event-by-event hurdles. The result is a patchwork where the same Counter-Strike match might be bettable in Denver and off-limits in Las Vegas on the same night.
Where You Can Bet on Esports: A State Snapshot
The table below samples how several states handle esports wagering as of 2026. It is a representative slice, not a full 50-state list, because regulations change often and operators add or remove markets through the year. For a deeper walkthrough of licensed operators and how to compare them, see our esports betting guide.
| State | Esports betting status | Regulator approach | Min. age |
|---|---|---|---|
| Nevada | Legal, event-by-event | Gaming Control Board approves each tournament | 21 |
| New Jersey | Legal | DGE approves selected esports events | 21 |
| Colorado | Legal | Esports included in approved catalog | 21 |
| Tennessee | Legal (online only) | Statewide online regulator | 21 |
| West Virginia | Legal | Lottery-run sports betting program | 21 |
| California | Not legalized | No state sports betting framework yet | – |
| Texas | Not legalized | No state sports betting framework yet | – |
| Utah | Prohibited | No legal gambling of any kind | – |
Notice the two largest states by population, California and Texas, still sit in the “not legalized” column. Repeated ballot and legislative efforts in California failed at the polls in 2022, and no framework had taken effect by 2026. That single fact keeps tens of millions of Americans outside the legal market, which is one reason offshore sites remain stubbornly popular.
There is no federal law that names esports betting and bans it; the question is always which state you are standing in.
The Federal Laws That Still Apply
Even after Murphy, a few federal statutes shape how legal esports betting operates. The Wire Act of 1961 restricts the interstate transmission of bets by wire, which is why licensed apps use geolocation to confirm you are physically inside an approved state. The Unlawful Internet Gambling Enforcement Act of 2006, or UIGEA, targets the payment processing behind illegal online gambling rather than individual bettors. None of these laws single out esports, but they set the boundaries every licensed sportsbook works within.
| Law or ruling | Year | What it does |
|---|---|---|
| Federal Wire Act | 1961 | Restricts interstate transmission of sports bets by wire |
| PASPA | 1992 | Banned state-authorized sports betting outside grandfathered states |
| UIGEA | 2006 | Bars payment processing for unlawful online gambling |
| Murphy v. NCAA | 2018 | Struck down PASPA and returned the decision to the states |
Age is the other federal-adjacent constant. Most states set 21 as the minimum, mirroring casino rules, though a small number allow 18 for certain online wagers. If the mechanics of pricing still feel fuzzy, our explainer on how esports betting odds work shows how American and decimal lines translate into payouts.
Skin Betting and the Offshore Gray Market
No honest discussion of esports betting legality can skip skin gambling. Around 2016, third-party sites let players wager Counter-Strike: Global Offensive weapon skins as virtual currency, often without any age check. The Washington State Gambling Commission ordered Valve to stop facilitating that activity, and Valve sent cease-and-desist notices to dozens of skin gambling operators. Skin betting on unlicensed sites remains illegal and unregulated, and it sits far outside the protections of a state-licensed sportsbook.
Offshore sites are the second gray area. Operators based outside the United States accept American customers without holding a state license, which puts them in violation of state law even when individual bettors are rarely prosecuted. The trade-off is real: no guaranteed payout, no dispute resolution, and no regulator to call. Understanding why this matters is easier once you grasp the structural differences in our piece on esports betting versus traditional sports betting.
A licensed sportsbook in New Jersey and an offshore site advertising the same match are not the same legal animal.
How to Bet on Esports Legally in 2026
Staying on the right side of the law is straightforward once you know the steps. Stick to operators that hold a license in your state, and confirm esports appears in their event catalog before you deposit.
- Confirm your state allows sports betting and that esports is an approved category.
- Choose a state-licensed operator such as DraftKings, FanDuel, BetMGM, or Caesars Sportsbook, all of which list esports markets in approved states.
- Verify your identity and age, since licensed apps require it before your first wager.
- Keep location services on, because geolocation must confirm you are physically inside a legal state.
- Set deposit and time limits using the responsible-gaming tools every licensed operator provides.
Integrity is the final piece. The Esports Integrity Commission monitors competitive matches for fixing and suspicious betting patterns, and licensed sportsbooks share data with bodies like it. Brand investment also signals how mainstream the space has become; our review of DraftKings as an esports sponsor shows how operators court the same audience they take bets from.

Frequently Asked Questions
Is esports betting legal in the US?
Esports betting is legal in roughly 38 states plus the District of Columbia, wherever a state regulator has approved it. There is no federal statute that bans esports betting by name. After the Supreme Court struck down PASPA in Murphy v. NCAA in 2018, each state gained the power to authorize sports wagering, and most that did now permit esports markets. Legality depends on two things: whether your state allows sports betting at all, and whether its regulator has cleared esports as an approved event category. Always check both before placing a bet.
Which states allow betting on esports?
States including New Jersey, Colorado, Tennessee, West Virginia, and Nevada permit esports wagering, though their approaches differ. Nevada reviews each esports tournament individually through its Gaming Control Board, while New Jersey’s Division of Gaming Enforcement approves selected events. Colorado and several other online-friendly states fold esports into broader approved catalogs. Large states such as California and Texas have not legalized sports betting at all as of 2026, so esports wagering is unavailable there through licensed operators. Because regulators update their catalogs frequently, the best practice is to verify directly with a licensed sportsbook in your state.
Do you have to be 21 to bet on esports?
In most states, yes. The standard minimum age for sports and esports betting is 21, matching the rules that govern casinos. A small number of states allow 18-year-olds to place certain online wagers, but 21 is by far the most common threshold across legal markets. Licensed operators verify your age and identity before accepting a first deposit, and they use geolocation to confirm you are physically inside an approved state. Attempting to bet underage, or using someone else’s account, violates both the operator’s terms and state law, and it can void any winnings you might otherwise collect.
Is it legal to bet esports with skins?
No. Wagering in-game items such as Counter-Strike weapon skins on third-party sites is unlicensed gambling and is illegal in the United States. The Washington State Gambling Commission ordered Valve to stop facilitating skin gambling in 2016, and Valve issued cease-and-desist notices to operators that ran skin betting platforms. These sites typically lack age verification and consumer protections, and many have targeted minors. If you want to bet on esports legally, use a state-licensed sportsbook that accepts standard currency and operates under a regulator. Skin betting offers none of those safeguards and carries real legal and financial risk.
Are offshore esports betting sites legal?
Offshore sites that accept U.S. customers without a state license operate in violation of state gambling law, even though individual bettors are rarely prosecuted. The bigger problem is the lack of protection. With no U.S. regulator overseeing them, offshore operators are not bound by state rules on payouts, dispute resolution, or responsible gaming. If a site refuses to release your winnings, you have no regulator to contact and limited legal recourse. Sticking to operators licensed in your own state means your funds are protected and disputes can be escalated to a gaming commission. That oversight is the entire point of a regulated market.
Can you bet on esports in California or Texas?
Not through licensed operators as of 2026. Neither California nor Texas has legalized sports betting, so no regulated esports markets exist in either state. California voters rejected two sports betting ballot measures in 2022, and subsequent efforts had not produced a working framework. Texas has seen repeated legislative proposals stall as well. Because these are the two most populous states, their absence keeps a large share of Americans outside the legal market. Residents sometimes turn to offshore sites, but those operate illegally and without consumer protection. The situation could change if either legislature acts, so it is worth watching.
Will more states legalize esports betting?
The trend points that way. Since the 2018 Murphy decision, the number of states with legal sports betting has climbed steadily toward 40, and esports has become a routine part of approved catalogs in markets with online wagering. As esports audiences and tournament prize pools grow, regulators face pressure to formalize esports rules rather than treat each event ad hoc. Holdout states with large populations remain the biggest variable, since legalization there would expand the legal esports market significantly. Expect gradual expansion rather than a sudden nationwide shift, with each new state setting its own age limits and approval process.
Related Reading
- Esports Betting Guide: Best Sites, Odds, and Match Analysis
- 10 Common Esports Betting Mistakes (and How to Fix Them)
- CS2 (Counter-Strike 2) Betting Guide: Markets, Odds & Tips
- Esports Betting Bankroll Management: Staking Plans
- Esports Betting Bonuses & Promo Codes: How to Compare Real Value
- Esports Betting Markets Explained: Match Winner, Handicaps, Maps & Props
- Esports Betting Strategy: 12 Proven Tactics to Find an Edge
- Esports Betting vs Sports Betting: Key Differences
- How Esports Betting Odds Work: American & Decimal Explained
- League of Legends Betting: How to Wager on LoL Esports in 2026
- Live Esports Betting: How to Bet on Matches in Real Time
- What Is Esports Betting? A Beginner's Guide for 2026
- Rivalry Review 2026: Esports Betting Markets, Odds & Safety
- Thunderpick Review 2026: Esports Odds, Crypto & Bonuses
Sources
- Supreme Court of the United States, opinion in Murphy v. NCAA – https://www.supremecourt.gov/opinions/17pdf/16-476_dbqn.pdf
- Wikipedia, “Murphy v. National Collegiate Athletic Association” – https://en.wikipedia.org/wiki/Murphy_v._National_Collegiate_Athletic_Association
- Wikipedia, “Sports betting in the United States” – https://en.wikipedia.org/wiki/Sports_betting_in_the_United_States
- Wikipedia, “Professional and Amateur Sports Protection Act” – https://en.wikipedia.org/wiki/Professional_and_Amateur_Sports_Protection_Act
- Wikipedia, “Unlawful Internet Gambling Enforcement Act of 2006” – https://en.wikipedia.org/wiki/Unlawful_Internet_Gambling_Enforcement_Act_of_2006
- Wikipedia, “Esports” – https://en.wikipedia.org/wiki/Esports
- Congress.gov, legislative record for PASPA (S.474, 102nd Congress) – https://www.congress.gov/bill/102nd-congress/senate-bill/474
Further reading
Top Esports Organizations 2026: Teams, Rosters, and Performance Rankings





