Betting on Sports: Overview of Legal Avenues in New York, New Jersey, and Missouri
Sportsbooks are racing to finalize their entry ahead of Missouri's sports betting launch day, scheduled for December 1. Meanwhile, in New York, the regulatory landscape for sports betting continues to evolve, with a focus on expanded online betting, new advertising and deposit limits, and tightened controls on fantasy sports and sweepstakes gambling.
New York
Legal sports betting (online and retail) has been active in New York since early 2022, with adults 21 and over allowed to bet, except those involved in the relevant sports or with insider information.
Recent regulatory actions in 2025 include a state Senate unanimous passage of bill S5935 in March 2025 to ban sweepstake gaming statewide, reflecting a crackdown on sweepstakes casinos. Fines and enforcement actions, such as the $17.5 million fine against Underdog Fantasy for offering daily fantasy sports illegally, have also been implemented. New rules adopted in October 2023 explicitly forbid fantasy contests based on proposition betting or those mimicking proposition betting.
A pending bill introduced in 2025 (S8185A and others) aims to legalize and regulate online casino gaming (iGaming), including online lottery and casino games, though it has not yet been passed as of August 2025. An important restriction prohibits bets on any New York college teams, regardless of where games are played.
The high taxation on gambling revenue at 51% impacts operators significantly.
Missouri
Missouri’s recent sports betting regulatory changes and rules are not detailed in the current search results, requiring further investigation to provide specifics.
New Jersey
New Jersey remains one of the earliest and most active states for regulated sports betting, with continued strong market presence and competition to New York online sportsbooks. However, no direct new 2025 changes or rules were identified in these specific search results.
The New Jersey sports betting bill aims to reduce the influence of gambling on young adults by severing financial ties between universities and sportsbooks. The law, A-4113, prohibits promotional deals across campus venues and school media to protect student well-being.
Additional Developments
In Missouri, only two untethered online licenses are available. Companies like BetMGM and bet365 have already secured legal Missouri sports betting access through partnerships. Three new supplier applications have been filed: Catalist, GeoComply, and Gaming Labs International.
Senator Andrew Gounardes introduced SB 7876 in May, which seeks to block itemized deductions for gambling losses in New York. If passed, SB 7876 could generate $50 million annually in sports betting taxes for New York.
Rep. Dina Titus introduced the FAIR BET Act in Congress to reverse the federal cap on gambling loss deductions. Operators like DraftKings and Underdog seek direct or partnered access in Missouri.
Final decisions for the licenses in Missouri are expected by August 15, and the New Jersey sports betting bill aims to protect student well-being by prohibiting promotional deals on campus venues and school media.
- Given New York's evolving regulatory landscape, a focus has been on expanding online betting, setting new advertising and deposit limits, and tightening controls on fantasy sports and sweepstakes gambling for legal sports betting in the state.
- The New York state Senate unanimously passed bill S5935 in March 2025, aiming to ban sweepstakes gaming statewide, indicating a crackdown on sweepstakes casinos.
- In Missouri, two untethered online licenses are available, and companies like BetMGM and bet365 have already secured legal sports betting access through partnerships.
- The FAIR BET Act, introduced in Congress by Rep. Dina Titus, seeks to reverse the federal cap on gambling loss deductions, a move that operators like DraftKings and Underdog are keeping a close eye on.
