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Five Years Post-PASPA: The Spread of Legal Sports Betting in the USA

Five years ago, the Professional and Amateur Sports Protection Act (PASPA) was repealed by the Supreme Court, kicking off one of the fastest periods of gambling legalization ever seen in the USA.
The repeal of PASPA, which had prevented all but a handful of states from regulating sports betting, started a revolution in real money betting that has forever changed the US gambling industry.
Five years later, it’s time to look back at how the market has developed and the legal, economic, and social effects of this monumental change.
The Context: The Downfall of PASPA
PASPA was a federal law that came into effect in 1992. It included all states except Nevada, Oregon, Montana, and Delaware, which were excluded because their laws already had sports betting provisions.
PASPA outlawed sports betting in all other states, effectively banning it nationwide. This didn’t mean that sports betting wasn’t happening; it was just an underground, offshore activity.
PASPA remained in force until May 2018, when the Supreme Court ruled it unconstitutional. This was thanks almost entirely to the efforts of New Jersey, under the leadership of Governor Chris Christie, who brought the legal challenge after trying to legalize online sports betting in 2011 and 2014. New Jersey argued that part of PASPA violated the anti-commandeering doctrine (the tenth amendment), which, in overly simple terms, prevents the federal government from coercing states to adopt or enforce federal laws.
The District Court first heard New Jersey’s case, then the Third Circuit, with both ruling against them. However, upon appeal, the case was heard by the Supreme Court (SCOTUS) on May 14th, 2018. SCOTUS agreed that PASPA violated the anti-commandeering principle, rescinding the entire act and stating that PASPA was meant to work as a whole, meaning that if part of it was not legally viable, the whole act must be struck down.
Legal Outlook: 38 States Legal, 12 To Go
With PASPA gone, each state now had the right to decide whether to legalize sports betting, with a majority opting to. As of November 2023, 38 states have said yes, passing new laws that allow retail sports betting. Online sports betting is also available in 26.
There are 12 states left to legalize. Three of them (South Carolina, Alabama, and California) face strong opposition, and the remaining nine are looking to introduce bills in the 2024/2025 legislative sessions. North Carolina and Minnesota are tipped to be the next to join the fray, and Oklahoma introduced a new proposal two months ago.
The legal landscape remains complex, with different rules, regulators, and taxation regimes in each state. On top of this, in certain locations, the presence of tribal gaming compacts has conflicted with commercial interests (the ongoing case of Florida sports betting and tribal opposition in California serve as perfect examples).
Growth of Online Casinos – Not Going As Planned
While there was no guarantee, many industry experts and commentators hoped that the legalization of sports betting would soon be followed by online casino regulation. However, thus far, only six states have legalized online casinos: New Jersey, Delaware, Pennsylvania, Michigan, West Virginia, and Connecticut, the latest to join the ranks, passing HB 6451 in 2021. Since then, there’s been no further movement for online casinos.
Players outside the mentioned states may only use land-based casinos or free social gaming sites where available. Sweepstakes casinos are also available across the country, Idaho and Washington aside. As a legitimate gaming option, sweepstakes are taking the US by storm, but just like with real online casinos, players should use a review site to find the best options.
As sweepstakes casinos don’t require a license in the USA, expert advice such as Casino Cabbie’s Wow Vegas Online Casino Review highlights any security issues and the benefits and pitfalls of each site as well before players sign up, making them an invaluable resource.
Economics: More Than $220 Billion Spent On Sports Betting Since 2018
One of the biggest drivers of sports betting legalization is the promise of potential tax revenue. The US sports betting industry is enormous, and since 2018, more than $220 billion has been spent on wagers, contributing over $3 billion in state taxes. The revenue earned by states has been instrumental in funding local projects and new initiatives, as well as responsible gambling research and support.
More in-depth and up-to-date research focusing on the exact economic contribution of sports betting is thin on the ground, and the last comprehensive study by Oxford Economics was published in 2017. At the time, it detailed that the entire sports betting industry created over 216,671 jobs.
Due to the lack of current data, we’re left to turn to figures charting the impact of the entire gambling industry, which includes casinos and sports betting. According to statistics from the American Gaming Association in 2022, US gambling is a powerhouse industry, creating, in total, 1.8 million US jobs, with $104.2 billion in wages (these figures include the entire supply chain).
There can be no argument that over the last five years, US sports betting has been a substantial economic contributor, helping state governments recover from COVID-19, creating jobs, and stimulating economic growth.
Social: 77% of American Adults Support Legalization in their State
Legally and economically, things have changed rapidly in the States since the repeal of PASPA, but what about the social impacts?
Research shows that 85% of Americans think the removal of PASPA was correct, with 77% now supporting sports betting legalization in their state. Moreover, the number of Americans open to placing sports bets has grown by 24 million since 2019. With many enjoying the newly legal betting options available to them, public attitudes towards gambling as a whole have seemingly softened.
With many states also benefiting from increased government budgets brought through sports betting tax revenue, it’s important to recognize the benefits this has made to social provisions. Many states have used the influx to contribute more money to education funds and other social causes, like reducing homelessness.
A proportion of the money is also used to fund state problem gambling assistance, with many running state-based hotlines and counseling services. Nonetheless, in many cases, this funding is not enough to offset the increased rates of gambling harms caused by legalization.
Future Outlook: Challenges and Concerns
Looking forward, the US online sports betting industry has a projected compound annual growth rate (CAGR) of 17.33% for 2023-2027, meaning there’s much more to come. However, this rapid growth will lead to some challenges.
Offshore gambling has been a considerable issue for the legal sports betting market. In 2022, The American Gaming Association estimated that Americans wagered $63.8 billion with illegal bookies, costing $3.8 billion in lost gaming revenue and $700 million in state taxes.
While offshore gambling is reducing, the latest data shows that 77% of online sports bets are now placed through regulated operators, compared to just 44% in 2019. However, things are not all rosy, and 48% of those who bet offshore believe they are placing legal wagers.
Gambling addiction also poses a considerable threat to the sustainability of the entire US gambling industry, with some states recently reporting problem gambling rates over 6%, which is three times the national average (to contextualize this figure better, the UK has a problem gambling rate of 0.2%). High rates of problem gambling twinned with rapid growth potentially represent a ticking time bomb that could rock the entire US industry.
It’s undoubtedly been an incredible five years for US bettors and sportsbooks; as a newer gambling market, the US must now look to more mature gambling jurisdictions to see what player protection methods work best and implement them sooner rather than later.
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BetBlocker and Responsible Online Gaming Association Partner to Deliver Free Blocking Software for the United States

US charity BetBlocker and the Responsible Online Gaming Association (ROGA), an independent association representing 90% of the legal U.S. sports betting industry, are today announcing a partnership to ensure that any American can access free, anonymous to use blocking software.
BetBlocker provides free, anonymous to use, blocking software allowing users to manage their access to online gambling services. The charity has supported over a 150k active users 2025, including over 10k US users.
Duncan Garvie, Founder of BetBlocker, offered this comment on the partnership:
“The single most effective way for BetBlocker to reach the audience that stand to benefit from our tool is via partnerships with the industry. ROGA represents a coordinated by the U.S. industry to improve responsible gaming standards throughout the sector. Having their backing for the BetBlocker project is a significant step forward for our organisation and will ensure that people who want support to structure where and when they can play online will be able to do so anonymously and for free.”
ROGA was established to raise the standard for responsible online gaming through collaboration, innovation, and a commitment to evidence-based practices,” said Dr. Jennifer Shatley, Executive Director of ROGA. “Making resources like BetBlocker more visible and accessible is one way we put that mission into action. We’re equipping individuals with practical tools that support their decisions and well-being.”
BetBlocker’s app is available on Android, iOS, Windows, Mac, Linux and Fire OS and can be set-up in under two minutes. The service is committed to reducing barriers to access to blocking software to improve engagement with this effective gaming management tool. ROGA’s commitment to viewing players as individuals and customizing support to their needs’ aligns perfectly with the soon to be launched Scheduling feature that BetBlocker will provide, supporting players to create profiles to ensures their block is on when they need it.
This collaboration represents a conscious commitment by both organizations to ensure that players who need support to manage their engagement with online gaming are supported with a diverse spectrum of available support options that can be tailored to the person’s individual needs.
About the Responsible Online Gaming Association
Launched in March 2024, the Responsible Online Gaming Association (ROGA) is comprised of eight of the nation’s largest online gaming operators, committed to promoting evidence-based best practices for responsible gaming. More information about ROGA is available here.
About BetBlocker
BetBlocker, a charity registered in Delaware. It is a not-for-profit that provides the only free (to everyone) gambling blocking software and multi-site and multi-jurisdiction responsible gaming mechanisms for consumers. At no cost, the game-changing software empowers users to play responsibly, allowing them to take steps to manage their access to gaming across all devices and platforms. BetBlocker is available all over the world and captures both regulated and unregulated gaming sites and apps.
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ZBD and TapNation forge new status quo in rewarded gaming

ZBD, the payments innovator powering real-money rewards for games, has introduced embedded in-game rewards, an evolution in how mobile games use real-money rewards to engage players, alongside launch partners including TapNation and Fumb Games.
Embedded rewards are a new approach to rewards in the mobile gaming industry, taking lessons learned from the rise of rewarded play apps to give any game the ability to incentivize users to play more, for longer and more profitably. Players can now earn real-money rewards inside the game, not a separate app, resulting in triple-digit retention boosts.
This solves an issue inherent in rewards apps which, while undeniably effective, limit the scale at which games can benefit from rewards by only applying rewards systems to users sent to a game from a specific app. Additionally, this system mostly performs well for IAP-monetized games due to the high cost of rewarded users, which are difficult to absorb for ad-monetized titles.
ZBD’s solution changes that. Already successfully integrated into titles such as Idle Bank, an idle tycoon hit by TapNation with more than 12M downloads, it embeds rewards directly into the gameplay experience. Powered by a lightweight SDK, the ZBD model drives improved retention and monetization for titles that monetize with ads as well as IAPs.
Philippe Lenormand, Head of Web3 at TapNation said:
“ZBD is taking a bold approach to boosting game monetization while keeping players happy, which comes at a good time for the industry. Embedded rewards have the potential to transform performance for games, especially those that partly rely on ad monetization.”
Beyond TapNation, the new SDK is already live in 20+ games from 7 other partners, including Fumb Games, PlayEmber and Hazmob. This includes a mix of older games, like Merge Monsters from Fumb Games, which saw a +181% increase in D7 retention after years of little activity, as well as new titles geared towards rewards, like Crypto Idle Tycoon by Ruleks Games, which saw its D30 retention climb by +355% and ad revenue per user by +124%.
Ben Cousens, Chief Strategy Officer at ZBD said:
“Rewards are proven beyond doubt to improve the value exchange between games and gamers, leading to powerful upticks in engagement, retention and monetization. With embedded rewards, we’re unlocking that potential beyond the constraints of rewarded UA channels. We’re using real-money payments to make a game more worth playing. And removing all the complexity that usually comes with payments to create a solution tailor-made for mobile game studios.”
Rewards powered by ZBD are always real money, not just in-game points. To facilitate this kind of money movement for amounts as small as a cent, ZBD uses the Bitcoin Lightning Network. But developers can choose whatever icon and currency name they want to show for the rewards, the Lightning Network is just the underlying payments layer that enables the transactions in real-time all over the world. ZBD has long offered a powerful payments API for studios to craft bespoke reward systems with custom logic, interfaces, and UX flows. The SDK builds on that foundation, transforming what was once an extensive technical integration into a ready-to-deploy layer that gets games live with rewards in less than a week.
Last month, ZBD announced its payments technology had been approved by Apple to enable native Bitcoin microtransactions in the mobile game SaruTobi, making it the first iOS game to integrate in-app purchases using Bitcoin. Now, embedded rewards are making it easy for any game to send microtransactions to players and gain massive performance boosts.
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SOFTSWISS Releases 19-in-1 Market Overview: iGaming in Latin America

SOFTSWISS, a global tech provider of iGaming software solutions, has unveiled its latest report on Latin America’s iGaming landscape, providing a comprehensive, data-rich guide for operators navigating one of the industry’s fastest-evolving regions.Â
After becoming the first certified iGaming software provider in Brazil and obtaining further approval in Peru, SOFTSWISS has deepened its regional expertise to help operators, regulators, and stakeholders better understand and operate within the dynamic LatAm iGaming market.
As the iGaming sector turns its eyes toward emerging markets, Latin America stands out as both a challenge and an opportunity. The newly released Latin America’s iGaming Market Overview from SOFTSWISS offers a detailed, country-by-country analysis of the region’s regulatory frameworks, market potential, and player behaviour.Â
The report serves as a starting point for understanding gambling regulation across Latin America. It helps analysts, governmental institutions, and operators solve the problem of scattered and unclear information about the market peculiarities of the region’s countries, equipping stakeholders with the knowledge to build strategies grounded in local realities.
What’s Inside the Report?
The iGaming in Latin America Market Overview examines 19 jurisdictions and outlines their licensing conditions, taxation models, local ownership requirements, and digital infrastructure, which collectively shape the operating landscape. The 2025 edition offers:
- Detailed regulatory snapshots for land-based and online gambling in LatAm countries
- In-depth assessments of mobile penetration, payment infrastructure, and demographic trends
- Analysis of traditional betting culture and its impact on online product strategies
- Insights into upcoming reforms and their competitive implications
Many local experts note that the Latin American market is highly fragmented, with each country presenting its own unique regulatory landscape for iGaming. From Costa Rica’s legal grey zones to Paraguay’s border casinos and Brazil’s regulatory leap with Law No. 14.790, the report underscores how nuanced and fragmented the market remains. Understanding distinct frameworks is critical for any operator looking to succeed in the region, whose potential is really powerful when approached strategically.
Magnho JosĂ©, President of Instituto Jogo Legal (IJL), comments: “Costa Rica’s open licensing model has positioned the country as a global hub for online gambling, serving operators from both Latin and North America. Meanwhile, border zones like Ciudad del Este in Paraguay host some of the region’s most established land-based casinos. Latin America’s market isn’t just growing, it’s geographically layered and commercially diverse.”
The SOFTSWISS overview gives operators a clear, data-informed view of where the region stands today – and where it is headed next.
Dario Leiman, Head of Business Development in Latin America at SOFTSWISS, shares his excitement: “With Brazil’s full-scale iGaming regulation now in place, SOFTSWISS is fully ready to operate in the market. In parallel, we’ve been evaluating opportunities in other Latin American countries. This report is more than a regional snapshot – it’s a practical tool for any operator looking to eliminate the guesswork from market entry and make informed decisions.”
The Latin America report is part of a broader effort by SOFTSWISS to deliver strategic, market-specific intelligence for iGaming professionals. Earlier this year, the company released the iGaming in South Africa 2025 report – an in-depth analysis of one of Africa’s most promising regulated markets.
About SOFTSWISS
SOFTSWISS is an international technology company with over 15 years of experience developing innovative solutions for the iGaming industry. SOFTSWISS holds a number of gaming licences and provides comprehensive software for managing iGaming projects. The company’s product portfolio includes the Online Casino Platform, the Game Aggregator with over 35,000 casino games, the Affilka Affiliate Platform, the Sportsbook Software and the Jackpot Aggregator. In 2013, SOFTSWISS revolutionised the industry by introducing the world’s first Bitcoin-optimised online casino solution. The expert team counts over 2,000 employees.
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