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What is the legal status of daily fantasy sports and sports betting in the United States?
Daily Fantasy Sports (DFS) like FanDuel operate under a distinct federal exemption from the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, which classifies them as games of skill. This allows them to function in most states. However, full-scale sports betting was only federally permitted after the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) in May 2018. Since then, individual states have been enacting their own laws to legalize, regulate, and tax sports wagering. As of early 2026, over 30 states and Washington D.C. have live, legal online sports betting markets, while a few more have passed legislation but are not yet operational. A small number of states still prohibit it entirely.
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