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Topic Cluster 15 states Updated 2026-04-30
Low-Tax Sports Betting States: 10% or Below
States where operators pay 10% or less in sports-betting tax. Lower operator tax burdens correlate historically with sharper consumer pricing and more aggressive promotional cadence.
Editorial Angle
Why This Group Of States Matters
Operator tax compresses operator margin, which shapes downstream consumer behavior — promo aggressiveness, line sharpness, and limit policies. Bettors in low-tax states tend to see better value on the consumer side.
15 States
States In This Category
02
Iowa IA
Iowa launched sports betting on August 15, 2019, the fastest state-to-launch in US history at just 3 months. At 6.75% GGR, Iowa ties with Nevada for the lowest sports betting tax rate in the US, attra…
03
Nevada NV
Nevada is the birthplace of legal sports betting (since 1949) and launched the first mobile sportsbook in 2010. Requires in-person registration at most books.
04
Michigan MI
Michigan is one of the most open markets with 12+ operators, low 8.4% tax, legal online casino gaming, and no college betting restrictions.
05
Montana MT
Montana has a state lottery monopoly. Sports Bet Montana is the only legal operator, and mobile bets can only be placed while on-premise at a licensed retailer.
06
Indiana IN
Indiana launched sports betting in September 2019 and has become a mature market with 10 operators and a competitive 9.5% tax rate.
07
Kentucky KY
Kentucky launched sports betting in September 2023. The Kentucky Horse Racing Commission regulates the industry with 9.75% online / 14.25% retail tax.
08
Arizona AZ
Arizona launched sports betting in September 2021 and quickly became one of the largest markets in the US. Governor Katie Hobbs proposed raising taxes on operators in 2026.
09
Colorado CO
Colorado has one of the most competitive sports betting markets in the US with 13 active licensed operators in Black Hawk, Central City, and Cripple Creek (more than 25 licenses have been issued total…
10
Kansas KS
Kansas launched sports betting on September 1, 2022 after Governor Laura Kelly signed SB 84. The state has 7 licensed operators (max 12) including DraftKings which dominates at 44.1% market share. bet…
11
Maine ME
Maine has a tribal-exclusive market with only 2 operators: Caesars (3 Wabanaki tribes) and DraftKings (Passamaquoddy Tribe).
12
13
West Virginia WV
West Virginia was an early mover launching retail betting in August 2018 and online in December 2018. The market grew to 7 active online sportsbooks by 2026 (DraftKings, FanDuel, BetMGM, Caesars, Fana…
14
Wyoming WY
Wyoming has online-only sports betting; no retail locations. Uniquely, the minimum age is 18 (rare for legal sports betting states).
15
Washington DC DC
Washington DC stands out from other US sports betting markets. The minimum age is 18 instead of 21. There are three license classes (A for pro venues, B for small businesses, C for citywide mobile). B…
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FAQ
Common Questions
What states are in this category?
15 states currently fall in this category: Tennessee, Iowa, Nevada, Michigan, Montana, Indiana, Kentucky, Arizona, Colorado, Kansas, Maine, Missouri, West Virginia, Wyoming, Washington DC. The list updates whenever a state's market structure changes (operator count, tax rate, or legal status).
Why does this category matter for bettors?
Operator tax compresses operator margin, which shapes downstream consumer behavior — promo aggressiveness, line sharpness, and limit policies. Bettors in low-tax states tend to see better value on the consumer side.
How were these states selected?
States are filtered by parsed operator-tax rate from our state-data ground truth file. Only states with a numeric tax rate (excluding tribal-compact arrangements) are included.
Where can I see the underlying data?
Each state has a dedicated guide page (/states/[slug]/) with the full operator list, tax history, regulator information, and timeline. For aggregate fiscal data across all 38 legal jurisdictions, see our /research/sports-betting-tax-revenue/ analysis.