Sports betting compliance
Also known as: Sportsbook KYC · Online sports betting regulation · Sports wagering compliance · Geolocation compliance
The identity, age, location and integrity controls that state-licensed sportsbooks must apply to every bettor, since the Supreme Court left sports betting to each state in 2018.
Legal basis
Murphy v. National Collegiate Athletic Assn., 584 U.S. 453 (2018)
In Murphy v. NCAA (2018) the Supreme Court struck down the federal law that barred states from authorizing sports betting. Since then each state decides whether to allow it, in person or online, and writes its own licensing and compliance rules. There is no single national standard; an operator live in several states runs several compliance programs.
New York shows the shape of those rules. A bettor must be at least 21, and an "authorized sports bettor" must be physically present in the state when placing the wager; mobile operators must adopt safeguards to ensure, to a reasonable degree of certainty, that bettors are located within the state. Athletes betting on their own events, industry insiders and minors are prohibited bettors. Identity verification, age checks and geolocation are therefore conditions of the license, not features.
The perimeter is still being contested. In April 2026 the Third Circuit held that the Commodity Exchange Act likely preempts New Jersey's gambling laws for sports event contracts traded on a CFTC-registered exchange; the question remains in litigation. For licensed sportsbooks, the risk that matters day to day is the one inside the account: stolen or synthetic identities, multi-accounting for bonus abuse, and account holders who are not the person betting.
Frequently asked questions
Is online sports betting legal in every state?
No. Since Murphy v. NCAA in 2018 each state decides for itself. Some allow retail and mobile betting, some only retail, and others none. Age limits, licensing and location rules are set state by state.
Why do sportsbooks need my location?
Because a state license only covers wagers placed inside that state. New York, for example, requires mobile operators to ensure to a reasonable degree of certainty that bettors are physically located in the state, which is why apps check location before accepting a bet.