What Is Sports Betting?
Sports betting is the act of placing a wager on the outcome of a sporting event. At its core, you're predicting what will happen in a game—whether a team will win, how many points will be scored, or how an individual player will perform—and risking money on that prediction. If your prediction is correct, you win money; if it's wrong, you lose your stake.
While people have been betting on sports for centuries, the modern sports betting landscape has been transformed by technology. Online sportsbooks like DraftKings, FanDuel, BetMGM, Caesars Sportsbook, and PointsBet now allow bettors to place wagers from their phones in seconds. Analytical tools like WagerWiz take it a step further, helping bettors identify profitable opportunities by comparing odds across every major sportsbook.
How Do Sportsbooks Work?
A sportsbook is the entity that accepts your bets. Whether it's an online platform or a physical location in a casino, the sportsbook sets the odds for each event, accepts wagers from bettors, and pays out winners.
Sportsbooks make money through a built-in margin called the vig (or juice). This is essentially a small fee baked into every betting line. For example, on a standard point spread bet, you'll often see both sides listed at -110 odds, meaning you need to risk $110 to win $100. That extra $10 is how the sportsbook guarantees profit over time regardless of the outcome.
Oddsmakers—the people who set the lines—use a combination of statistical models, historical data, injury reports, and market activity to determine the odds. Once lines are released, the odds move based on how much money is wagered on each side.
Is Sports Betting Legal in the US?
Sports betting legality in the United States changed dramatically in May 2018 when the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA). This ruling allowed individual states to legalize and regulate sports betting.
As of 2025, over 35 states plus Washington D.C. have legalized some form of sports betting. Major markets include New York, New Jersey, Pennsylvania, Illinois, Colorado, Arizona, Ohio, Massachusetts, and Michigan. Each state has its own regulatory framework, licensed operators, and tax structure.
Before placing any bets, confirm that sports betting is legal in your state and that you're using a licensed, regulated sportsbook.
Popular Sports to Bet On
Sports betting covers virtually every professional and collegiate sport. Here are the most popular markets in the US:
| Sport | League | Peak Betting Season |
|---|---|---|
| Football | NFL, NCAAF | September – February |
| Basketball | NBA, NCAAB | October – June |
| Baseball | MLB | April – October |
| Hockey | NHL | October – June |
| Soccer | MLS, Premier League, La Liga, Champions League | Year-round |
| Tennis | ATP, WTA, Grand Slams | Year-round |
| Golf | PGA Tour, LIV Golf | Year-round |
| MMA/Boxing | UFC, PBC | Year-round |
The NFL remains the most heavily wagered sport in the US, with the Super Bowl alone generating billions in handle (total amount wagered). March Madness and the NBA Playoffs are also massive betting events.
Types of Bets: A Quick Overview
Understanding the main bet types is essential before you start wagering. Here's a brief overview of each (we cover these in detail in our separate guide on common bet types):
Moneyline
The simplest bet—you pick which team or player will win the game outright. No point spreads involved.
Point Spread
The sportsbook assigns a handicap to the favored team. The favorite must win by more than the spread, while the underdog can lose by fewer points than the spread (or win outright) for your bet to cash.
Totals (Over/Under)
Instead of picking a winner, you wager on whether the total combined score of both teams will go over or under a number set by the sportsbook.
Props (Proposition Bets)
Wagers on specific events within a game, like "Will Patrick Mahomes throw over 2.5 touchdown passes?" or "Will LeBron James score over 27.5 points?"
Parlays
A parlay combines two or more individual bets into one wager. All selections (legs) must win for the parlay to pay out. The payout increases with each leg added, but so does the risk.
Futures
Long-term bets on events that will be decided in the future, such as "Who will win the 2026 Super Bowl?" or "Who will win the NBA MVP award?"
How to Place Your First Bet
Placing your first sports bet is straightforward. Here's a step-by-step guide:
- Choose a licensed sportsbook. Sign up for an account on a regulated platform like DraftKings, FanDuel, BetMGM, or Caesars. Many offer sign-up bonuses for new users.
- Verify your identity. Sportsbooks require age and identity verification to comply with state regulations. You'll need to provide your name, date of birth, and the last four digits of your SSN.
- Deposit funds. Fund your account using a debit card, bank transfer, PayPal, Venmo, or another accepted payment method.
- Navigate to the sport and game. Browse the sportsbook's menu to find the sport, league, and specific matchup you want to bet on.
- Select your bet. Click on the odds for the outcome you want to wager on. This adds the bet to your bet slip.
- Enter your stake. Type in how much you want to wager. The bet slip will show your potential payout.
- Confirm and place the bet. Review everything and hit "Place Bet." Your wager is now live.
Before placing your bet, consider using a tool like WagerWiz to compare odds across multiple sportsbooks. Even small differences in odds can add up to significant profit over hundreds of bets. WagerWiz's screener shows you which sportsbook offers the best line for any given bet, helping you maximize value from day one.
Tips for Beginner Sports Bettors
- Start small. Don't wager more than you can afford to lose. Treat your initial bets as a learning experience.
- Focus on one sport. Specializing in a single sport or league lets you develop deeper knowledge and spot value more effectively.
- Shop for the best lines. Different sportsbooks often post different odds for the same event. Always check multiple books—or use WagerWiz to do it instantly.
- Keep records. Track every bet you place, including the sport, bet type, odds, stake, and result. This data is invaluable for improving over time.
- Learn about expected value. Understanding +EV (positive expected value) betting is what separates recreational bettors from profitable ones.
Responsible Gambling
Sports betting should be entertaining. It's critical to set boundaries and stick to them:
- Set a budget before you start and never bet money you can't afford to lose.
- Never chase losses by increasing your bet sizes after a losing streak.
- Take breaks. If betting stops being fun, step away.
- Use the responsible gambling tools offered by sportsbooks, including deposit limits, loss limits, and self-exclusion options.
- If you or someone you know has a gambling problem, contact the National Council on Problem Gambling helpline at 1-800-522-4700.
FAQ
Is sports betting the same as gambling?
Yes, sports betting is a form of gambling. While skilled bettors can gain a statistical edge over time through research and analytical tools, every individual bet carries the risk of loss. The key difference between sports betting and pure games of chance (like slots) is that knowledge and analysis can meaningfully improve your outcomes.
How much money do I need to start sports betting?
You can start with as little as $10–$50 on most sportsbooks. Many platforms have minimum bet sizes of just $1. The important thing is to only wager money you can afford to lose and to practice proper bankroll management from the start.
Can you actually make money sports betting?
Yes, but it's difficult. The vast majority of recreational bettors lose money over time because of the vig built into every bet. However, bettors who consistently find positive expected value (+EV) opportunities—where the odds offered are better than the true probability—can be profitable in the long run. Tools like WagerWiz are designed to help bettors identify exactly these opportunities.
What is the easiest sport to bet on for beginners?
NFL football is often recommended for beginners because of the widespread coverage, slower pace of the season (one game per team per week gives you more time to research), and the abundance of publicly available data. NBA basketball is another strong option due to the large number of games and straightforward scoring.
Do I have to pay taxes on sports betting winnings?
Yes. In the United States, sports betting winnings are considered taxable income by the IRS. Sportsbooks will issue a W-2G form for large payouts, but you're legally required to report all gambling income regardless of whether you receive a form. Consult a tax professional for guidance specific to your situation.
