Why is matched betting legal?

There is no law, federal or state, that mentions matched betting. What the law regulates is sports wagering: who may offer it, to whom and where. Since the Supreme Court struck down the federal ban in Murphy v. NCAA on May 14, 2018, every state decides for itself. A matched bettor places ordinary bets at sportsbooks licensed by the state they are in and uses the promotions those sportsbooks publish themselves; covering a bet with the opposite bet elsewhere is a strategy, not a legal category. So the question "is matched betting legal in my state?" has the same answer as "is online sports betting legal in my state?".

Two things follow. First, what a sportsbook can do about a customer who only uses promotions is a matter of its terms and conditions, never of criminal law (see below). Second, the rules that do bind you are the ones every bettor has: minimum age, being physically inside the state when you bet (operators enforce it with geolocation), one account per person in your own name, and declaring your winnings. Read how the method works in Matched betting in the US: what is it, how does it work and how much can you make?.

Where is online sports betting legal? State by state

The table lists every state and the District of Columbia with the status of online (mobile) sports betting, the minimum age and the regulator. Each entry was checked on the regulator's own site or the state statute on September 28, 2026; the source of each row is in the Sources block. "Retail only" means you can bet in person at a casino or track but not from a phone or computer, which is what matched betting needs. Laws change: when a state launches or a court rules, the offers page updates before this article does, so also use "Filter by location" on the welcome offers page.

On September 28, 2026 NinjaBet.com lists offers from sportsbooks licensed in 21 states: Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Vermont, Virginia, West Virginia and Wyoming. In the other legal states you can still use the tools with the sportsbooks available there; the help answer Which US states does NinjaBet support? explains the details.

Is ProphetX legal, and in which states?

ProphetX, the prediction market NinjaBet.com uses as the cover side, is not a sportsbook and does not hold state licenses. Since June 11, 2026 it is a designated contract market registered with the Commodity Futures Trading Commission (CFTC), the federal derivatives regulator, and it launched nationwide on June 18, 2026; its markets are event contracts on sports outcomes, priced in American odds, and it charges a 2 % fee on net gains per market. It accepts users from 18 (or the age of majority in their state) after an identity check with ID, selfie and Social Security number. ProphetX itself publishes no state list: at the time of writing trade press reports it as live in 49 states and the District of Columbia, with Nevada the one exclusion, and the app tells you at sign-up whether your location is accepted.

One caveat matters. Several states (New Jersey, Nevada, Ohio, Tennessee, Maryland and others) contend that sports event contracts on CFTC-registered markets are gambling under state law, and the federal courts are split: in April 2026 the Third Circuit sided with the platform Kalshi against New Jersey, while in August and September 2026 the Ninth and Sixth Circuits sided with Nevada, Ohio and Tennessee. New Jersey has asked the Supreme Court to hear the case (petition filed September 2, 2026) and the CFTC has proposed rules on sports event contracts that are not final. ProphetX operates under the same federal model, so its availability in a given state could change with those rulings. None of this concerns you as a user: if ProphetX is not available where you are, the Dutcher covers every bet at a second sportsbook instead, with no commission.

Can a sportsbook close my account for matched betting?

It can limit it, and sometimes does, but that is a business decision under its terms, not a penalty. Sportsbook house rules reserve the right to refuse or limit any wager and to restrict, modify or withdraw promotions at their sole discretion: FanDuel's house rules, for example, say that "all promotions ... are provided at the sole discretion of FanDuel Sportsbook" and that it "reserves the right, at its sole discretion, to refuse, limit or cancel any wager". In practice a customer who only ever bets on promotions may be excluded from future bonuses or have their maximum stake reduced. What a licensed operator cannot do is keep the verified real-money balance of a customer who broke no rule: the state regulator has a complaint procedure for that.

What does get accounts closed, everywhere, is multi-accounting: opening a second account, using a relative's account or documents, or masking your location with a VPN. Those break the terms of every operator and, in most states, the wagering statute too. One account per person, in your own name, from inside the state.

Do I pay taxes on matched betting profits?

Yes. For the IRS gambling winnings are fully taxable income, reported on Schedule 1 of Form 1040 whatever the amount; losses are deductible only if you itemize and only up to your winnings. Because matched betting covers every bet, the gross winnings a sportsbook reports can be far larger than your real profit, so keep a complete record of every bet, deposit and withdrawal. Sportsbooks issue Form W-2G for large payouts (for 2026 the reporting threshold is $2,000 on a payout of at least 300 times the wager) and withhold 24 % on payouts of $5,000 or more.

Two changes for tax year 2026 (the return you file in 2027): the deduction for gambling losses is limited to 90 % of the losses, still capped at your winnings, under the One Big Beautiful Bill Act of July 4, 2025; and the W-2G thresholds are now indexed for inflation. Most states with an income tax also tax gambling winnings as ordinary income: New Jersey withholds 3 % on reportable gambling payouts, New York taxes residents' winnings at its ordinary rates. This is general information, not tax advice: see Do I have to pay taxes on matched betting profits? and ask a tax professional about your situation.

What does NinjaBet do, legally?

NinjaBet is a tool and education service: it compares prices, does the math and explains the promotions. It takes no bets, holds no money and is not a sportsbook or a prediction market, so it needs no gaming license; the money always moves between you and the licensed operators. NinjaBet earns from subscriptions and, where disclosed, from affiliate links to operators. You can start with the free account and the first free offer.

Frequently asked questions

Is matched betting illegal anywhere in the US?

Matched betting is not illegal anywhere as such. What is illegal is betting with an operator not licensed in your state, betting from a state where online wagering is prohibited (with a VPN, for example) or betting under age. In a state without legal online sports betting there is simply nothing to match.

Is matched betting gambling in the eyes of the law?

Each bet is a legal wager like any other, placed with a licensed operator; the law does not look at your strategy. The difference is economic, not legal: by covering every outcome you remove the dependence on the result.

Can I be prosecuted for "bonus abuse"?

No. Using a promotion in a way the operator did not intend is a breach of its terms at most, with commercial consequences (exclusion from promotions, stake limits, account closure). It becomes an offense only when it involves fraud: fake identities, someone else's documents, several accounts.

What if my state is retail-only?

You can bet in person at licensed venues, but the promotions worth matching are the online ones and the cover must be placed at the same time, so matched betting is not practical. Several retail-only states have online bills pending; the table is updated when one passes.

Do I need to be 21?

To bet at sportsbooks, yes in almost every state; a few allow 18 or 19, and the table says which. ProphetX accepts users from 18, but a welcome offer always needs a sportsbook account, so 21 is the practical minimum in most of the country.

Do I have to report profits from ProphetX too?

Yes. Gains on event contracts are income for the IRS like any other gambling or trading gain, whether or not you receive a tax form. Keep your own records, the Bet Tracker helps, and ask a tax professional how to report them.

Where can I check my state's rules myself?

On the regulator listed in the table: every one of them publishes the list of licensed online operators and the wagering statute. If a sportsbook is not on that list, it is not legal in your state, whatever its website says.

Sources

• Supreme Court of the United States, Murphy v. National Collegiate Athletic Association, No. 16-476, decided May 14, 2018 (supremecourt.gov/opinions/17pdf/16-476_dbfi.pdf).
• Commodity Futures Trading Commission, Designated Contract Market filing 58754, ProphetX LLC, designation date June 11, 2026 (cftc.gov); ProphetX, Terms of Use v1.0 (June 10, 2026), Rulebook v3.0 (July 29, 2026) and Trading Fees v1.2 (September 24, 2026) (prophetx.co); ProphetX press release "ProphetX Launches Nationwide", June 18, 2026.
• United States Court of Appeals for the Third Circuit, KalshiEX LLC v. Flaherty, No. 25-1922 (April 6, 2026); Ninth Circuit, KalshiEX LLC v. Assad, No. 25-7516 (August 28, 2026); Sixth Circuit, KalshiEX LLC v. Schuler and v. Orgel, Nos. 26-3196 and 26-5235 (September 25, 2026); Supreme Court docket No. 26-299, Flaherty v. KalshiEX LLC (petition filed September 2, 2026); CFTC Notice of Proposed Rulemaking, Release 9249-26 (June 10, 2026).
• Internal Revenue Service, Topic No. 419, Gambling income and losses (irs.gov/taxtopics/tc419, reviewed September 24, 2026); Instructions for Forms W-2G and 5754 (rev. January 2026); 26 U.S.C. § 165(d) as amended by Pub. L. 119-21 § 70114 (July 4, 2025).
• New Jersey Division of Taxation, "Lottery and gambling winnings" (nj.gov/treasury/taxation, updated April 1, 2026); New York State Department of Taxation and Finance, Instructions for Form IT-203 (2025).
• FanDuel Sportsbook House Rules, Ohio, effective July 22, 2026 (fanduel.com); DraftKings Sportsbook House Rules, August 1, 2024 (hosted by the Massachusetts Gaming Commission).
• National Council on Problem Gambling, National Problem Gambling Helpline (ncpgambling.org); Council on Compulsive Gambling of New Jersey, 1-800-GAMBLER (800gambler.org).
• Alabama: None (no sports wagering law), https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2026RS/SB257-int.pdf (consulted September 28, 2026).
• Alaska: None (no sports wagering law), https://www.akleg.gov/basis/Bill/Detail/34?Root=HB%20145 (consulted September 28, 2026).
• Arizona: Arizona Department of Gaming, https://www.azleg.gov/ars/5/01301.htm (consulted September 28, 2026).
• Arkansas: Arkansas Racing Commission, https://codeofarrules.arkansas.gov/Rules/Rule?levelType=section&titleID=23&chapterID=238&subChapterID=295&partID=1258&subPartID=7983&sectionID=52475 (consulted September 28, 2026).
• California: None (no sports wagering law), https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PEN&sectionNum=337a (consulted September 28, 2026).
• Colorado: Colorado Division of Gaming / Limited Gaming Control Commission, https://sbg.colorado.gov/licensed-sports-books-and-operators (consulted September 28, 2026).
• Connecticut: Connecticut Department of Consumer Protection, Gaming Division, https://portal.ct.gov/gaming/knowledge-base/categories/online-gaming/sports-wagering (consulted September 28, 2026).
• Delaware: Delaware Lottery, https://www.delottery.com/More/iGaming (consulted September 28, 2026).
• District of Columbia: DC Office of Lottery and Gaming, https://dclottery.com/sites/default/files/2026-04/OLG-SW-Approved-Sports-Wagering-Licenses-Rev-04.30.26_0.pdf (consulted September 28, 2026).
• Florida: Florida Gaming Control Commission, https://flgaming.gov/docs/Press-Release/Press-Release-FGCC-Demands-Overseas-Bookmakers-and-Casinos-Cease-Illegal-Online-Gambling-Operations-Feb-2025.pdf (consulted September 28, 2026).
• Georgia: None (no sports wagering law), https://www.legis.ga.gov/api/document/docs/default-source/house-calendars/20252026/03062026.pdf?sfvrsn=cc9579f6_2 (consulted September 28, 2026).
• Hawaii: None (no sports wagering law), https://data.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1308&year=2026 (consulted September 28, 2026).
• Idaho: None (no sports wagering law), https://archive.sos.idaho.gov/downloads/Idaho_Constitution.pdf (consulted September 28, 2026).
• Illinois: Illinois Gaming Board, https://igb.illinois.gov/sports-wagering/sports-authorized-operating-sportsbooks.html (consulted September 28, 2026).
• Indiana: Indiana Gaming Commission, https://www.in.gov/igc/sports-wagering-and-paid-fantasy-sports/swcontacts/ (consulted September 28, 2026).
• Iowa: Iowa Racing and Gaming Commission, https://irgc.iowa.gov/licensing-information/sports-wagering (consulted September 28, 2026).
• Kansas: Kansas Lottery, https://www.kslegislature.gov/li/b2025_26/statute/074_000_0000_chapter/074_087_0000_article/074_087_0081_section/074_087_0081_k/ (consulted September 28, 2026).
• Kentucky: Kentucky Horse Racing and Gaming Corporation, https://khrc.ky.gov/newstatic_info.aspx?static_ID=694 (consulted September 28, 2026).
• Louisiana: Louisiana Gaming Control Board, https://legis.la.gov/Legis/Law.aspx?d=1239437 (consulted September 28, 2026).
• Maine: Maine Gambling Control Unit, https://www.maine.gov/dps/gamb-control/sports-wagering (consulted September 28, 2026).
• Maryland: Maryland Lottery and Gaming Control Agency / Commission, https://www.mdgaming.com/maryland-sports-wagering/ (consulted September 28, 2026).
• Massachusetts: Massachusetts Gaming Commission, https://massgaming.com/about/sports-wagering/sports-wagering-licensees/ (consulted September 28, 2026).
• Michigan: Michigan Gaming Control Board, https://www.michigan.gov/mgcb/news/2026/09/18/august-2026-igaming-revenue (consulted September 28, 2026).
• Minnesota: Minnesota Legislature, https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF4139&ssn=0&y=2026 (consulted September 28, 2026).
• Mississippi: Mississippi Gaming Commission, https://www.msgamingcommission.com/faqs (consulted September 28, 2026).
• Missouri: Missouri Gaming Commission, https://www.mgc.dps.mo.gov/SportsWagering/Sports_Wagering_Launch122025.pdf (consulted September 28, 2026).
• Montana: Montana Lottery, https://archive.legmt.gov/bills/mca/title_0230/chapter_0070/part_0010/section_0030/0230-0070-0010-0030.html (consulted September 28, 2026).
• Nebraska: Nebraska Racing and Gaming Commission, https://nrgc.nebraska.gov/gaming/sports-betting (consulted September 28, 2026).
• Nevada: Nevada Gaming Control Board / Nevada Gaming Commission, https://www.gaming.nv.gov/siteassets/content/regs/regulation-22-as-of-1-26.pdf (consulted September 28, 2026).
• New Hampshire: New Hampshire Lottery Commission, https://www.nhlottery.com/sports (consulted September 28, 2026).
• New Jersey: New Jersey Division of Gaming Enforcement, https://www.njoag.gov/about/divisions-and-offices/division-of-gaming-enforcement-home/sports-wagering/ (consulted September 28, 2026).
• New Mexico: New Mexico Gaming Control Board, https://www.gcb.nm.gov/new-mexico-gaming-control-board-faqs-and-info/ (consulted September 28, 2026).
• New York: New York State Gaming Commission, https://gaming.ny.gov/sports-wagering (consulted September 28, 2026).
• North Carolina: North Carolina State Lottery Commission, https://ncgaming.gov/faqs-2/ (consulted September 28, 2026).
• North Dakota: North Dakota Attorney General – Gaming Division, https://www.governor.nd.gov/news/final-drafts-tribal-state-gaming-compacts-submitted-review-public-comment-period-closes (consulted September 28, 2026).
• Ohio: Ohio Casino Control Commission, https://casinocontrol.ohio.gov/wps/portal/gov/cac/licensing-renewal/02-sports-gaming/02-sports-gaming (consulted September 28, 2026).
• Oklahoma: None (no sports wagering law), http://www.oklegislature.gov/BillInfo.aspx?Bill=HB1047&Session=2600 (consulted September 28, 2026).
• Oregon: Oregon Lottery, https://www.oregonlottery.org/about/help/ (consulted September 28, 2026).
• Pennsylvania: Pennsylvania Gaming Control Board, https://gamingcontrolboard.pa.gov/online-sports-wagering-licensed-operators (consulted September 28, 2026).
• Rhode Island: Rhode Island Lottery, https://www.rilot.com/en-us/player-zone/faqs.html (consulted September 28, 2026).
• South Carolina: None (no sports wagering law), https://www.scstatehouse.gov/sess126_2025-2026/bills/3625.htm (consulted September 28, 2026).
• South Dakota: South Dakota Commission on Gaming, https://sdlegislature.gov/api/Statutes/42-7B-79.html (consulted September 28, 2026).
• Tennessee: Tennessee Sports Wagering Council, https://www.tn.gov/swac/about/faqs.html (consulted September 28, 2026).
• Texas: None (no sports wagering law), https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HJR134 (consulted September 28, 2026).
• Utah: None (no sports wagering law), https://le.utah.gov/xcode/ArticleVI/UC_AVI_S27_1800010118000101.pdf (consulted September 28, 2026).
• Vermont: Vermont Department of Liquor and Lottery, https://liquorandlottery.vermont.gov/press-release/mobile-sports-wagering-goes-live-january-11-2024 (consulted September 28, 2026).
• Virginia: Virginia Lottery, https://www.valottery.com/aboutus/casinosandsportsbetting/sportsbetting (consulted September 28, 2026).
• Washington: Washington State Gambling Commission, https://wsgc.wa.gov/tribal-partnerships/sports-wagering/sports-wagering-requirements-and-rules (consulted September 28, 2026).
• West Virginia: West Virginia Lottery Commission, https://code.wvlegislature.gov/29-22D-15/ (consulted September 28, 2026).
• Wisconsin: Wisconsin Department of Administration – Division of Gaming, https://content.govdelivery.com/attachments/WIGOV/2026/04/09/file_attachments/3612792/ab601.pdf (consulted September 28, 2026).
• Wyoming: Wyoming Gaming Commission, https://gaming.wyo.gov/OSW/permit-holders (consulted September 28, 2026).

You must be 21 or older to bet at sportsbooks in almost every state (18 in a few) and bet only with operators licensed in your state. Gambling can be addictive: if you or someone you know has a gambling problem, call or text 1-800-GAMBLER, or the National Problem Gambling Helpline at 1-800-MY-RESET (ncpgambling.org), free and confidential, 24/7. This article is general information, not legal or tax advice, and results from matched betting vary and require time and capital. Last updated: September 28, 2026.