How to Comply With Your State’s Sports Betting Regulations


The sports betting market doubled in 2021, so becoming a bookie is now a better idea than ever. But before you start advertising your services, make sure that you’re in compliance with local laws and regulations.

A sportsbook makes money by charging a commission on losing bets, known as the vig or juice. This fee is what keeps the sportsbook profitable year-round.


The legality of sportsbook transactions is a topic that can vary widely from state to state. Some states like Utah outlaw all forms of gambling while others, such as Arkansas, only allow sports betting through a state-licensed operator. Online sportsbooks must comply with the regulations of each state in which they operate. They must also verify bettors’ location by using geo-location technology.

In addition, the sportsbook must offer safe payment methods. Providing conventional debit card and wire transfer options as well as eWallet choices will satisfy customer expectations and ensure that payments are processed quickly and securely. A high risk merchant account is a requirement for most sportsbooks, which can limit the number of available processors and lead to higher fees.

Regardless of whether you’re a seasoned gambler or a beginner, it’s important to research the legality of sportsbook gambling before making any wagers. You can do this in a variety of ways, including consulting your country’s government website and checking out iGaming regulations.


The regulations that govern sportsbook transactions are designed to protect consumers and help ensure a safe, transparent market. However, they can also create barriers to attracting new customers and fostering competition. One of these barriers is the federal excise tax, which serves no dedicated purpose and disproportionately disadvantages legal sportsbooks over illegal ones.

Bank transfers are popular payment methods for online and physical sportsbooks. This method is based on direct deposits and withdrawals between the player’s banking institution and the betting site. The customer needs to provide their personal bank information (including account and routing numbers) to make the transaction. This type of deposit requires less verification than a credit card, although it does take longer to process.

Regulators have been clear that they expect sportsbooks to develop risk-based anti-money laundering (AML) programs that are tailored to their size and scope. They will also be expected to use all available data to monitor suspicious transactions and report them to law enforcement.


When it comes to making sportsbook deposits and withdrawals, taxes are an important consideration. Depending on your state, you may be required to pay federal taxes on your winnings or report them to the IRS as part of your income tax return. Some states also require sportsbooks to pay a percentage of their revenue to the state.

Many reputable online sportsbooks offer several different payment methods, including debit cards and bank transfers. These options are generally safe and secure. In most cases, you can find the details of each option in the “Payment” or “Cashier” sections of the sportsbook’s website.

Whether you are a professional or a casual gambler, the IRS views your gambling winnings as self-employment income. This means that you should keep a record of your gambling activity, and it is recommended to make records of both wins and losses. Keeping these records is essential if you want to deduct your losses when filing your taxes.

Customer service

The customer service provided by sportsbook is important because it sets the tone for credibility and reliability. It also helps customers differentiate platforms that offer competitive odds, valuable promotions, and unique features. Customer reviews can also be useful as a vetting process, helping users make informed decisions about which sportsbooks to use.

Whether it’s via chat or phone, the customer service provided by sportsbook should be fast and reliable. This will help you avoid the frustration of waiting on hold for an agent to answer your question. The good news is that most sportsbooks have chat support available around the clock.

Using a custom sportsbook solution gives you full control over your user experience, so you can make sure it looks and feels just the way you want it to. This type of solution can be costlier than a turnkey option, but it may be worth it if you want to tailor your sportsbook to a particular market.