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Sub-national
North America

United States - Oregon: gambling regulation and licensing

Part of United States

  • Online sports bettingMonopoly
  • Online casinoProhibited
  • Online pokerProhibited
  • Online bingoProhibited
  • iLotteryMonopoly
  • Horse race bettingRegulated
  • Daily fantasy sportsProhibited
  • Land-based (reference)Regulated
Regulator
Oregon State Lottery Commission and Oregon State Lottery
Headline tax
Not yet verified
Licence required
Yes
Last verified
23 Sept 2026

Summary

Oregon has no commercial gaming regulator and no licence for private gambling operators. Article XV, section 4 of the state constitution, adopted by the voters on 6 November 1984, created the State Lottery Commission to run a single state lottery and forbids the Legislative Assembly to authorise casinos. The Oregon State Lottery, overseen by five commissioners appointed by the Governor and confirmed by the Senate, runs draw games, Scratch-its, Keno, about 10,500 Video Lottery terminals in bars and taverns, and the state's only legal sports betting. Online sports betting launched in October 2019 and since 18 January 2022 has run as DraftKings Sportsbook, Official Provider of the Oregon Lottery: the Lottery is the operator in law, DraftKings is its contractor and keeps 49% of net receipts, and college sports are not offered. The Lottery sells no other games online. Outside the Lottery, gambling not specifically authorised by law is a crime: promoting it is a Class C felony and playing it a Class A misdemeanour. A November 2025 Attorney General opinion requested by the Lottery concluded that private online sports betting, fantasy sports, esports betting and online casino games are all gambling. The Racing Commission licenses pari-mutuel racing and eight advance deposit wagering hubs, which must accept Oregon residents; the Department of Justice licenses charitable bingo, raffles and Monte Carlo events; nine tribes run casinos under compacts monitored by the State Police. There is no gaming tax: the Lottery transferred $889.9 million to the state in the year to June 2025. In that year Oregonians staked $892.1 million on sports, leaving $105.3 million after prizes and refunds.

Common pitfalls

Treating Oregon as an open sports betting market because the DraftKings brand is visible: DraftKings acts for the Lottery, and no licence exists for any other sportsbook. Assuming college games can be bet on: the Lottery does not offer them. Reading the $6.8 billion of 2025 handle through Oregon-licensed advance deposit wagering hubs as Oregon betting: it is multi-jurisdictional handle from account holders in many states, not a measure of the Oregon market. Counting Video Lottery as casino gaming: the constitution bans casinos, and Video Lottery terminals are Lottery games in bars and taverns. Assuming daily fantasy is safe because it is widely offered: the Attorney General treats it as gambling.

Key facts

Regulator
Oregon State Lottery Commission and Oregon State Lottery
Regulator type
Lottery monopoly
Headline tax
Not yet verified
Licence required
Yes
Minimum age
21+
Tax base
No gaming tax applies to the Lottery, a self-supporting state agency: after prizes (at least 50% of revenue) and expenses (at most 16%), all net proceeds are transferred to the state (ORS 461.500; Or Const art XV, s 4). For sports betting the state keeps its share of net receipts after paying DraftKings 49% under contract. Advance deposit wagering hubs pay the Racing Commission 0.125% of the first $60 million of handle and 0.25% above that, or a flat 0.25%, up to an annual cap (OAR 462-220-0040). Race meet licensees may take no more than 22% of mutuel pools (ORS 462.140).

Licensing

Licence required
Yes
Application window
Not yet verified
Local establishment required
Yes
Local server required
Yes
Active licences
8 (as of 23 Sept 2026)
Typical time to licence
Charitable gaming: the Department of Justice has 60 days from a complete application to approve or deny.
Bank guarantee or bond
Advance deposit wagering hubs must post a $50,000 irrevocable bond, letter of credit or other security naming the Racing Commission as beneficiary, and hold player funds in a segregated insured account (OAR 462-220-0030(7)).
Notable licensees
DraftKings (Lottery sports betting provider), Churchill Downs Technology Initiatives Company (TwinSpires), ODS Technologies (TVG), Xpressbet, NYRA Bets, Game Play Network (Horse Play), AmWest Entertainment (AmWager), DK Horse (DraftKings Racing), eBet Technologies
Barriers to entry
There is no licence for a private sportsbook, online casino or poker operator: only one State Lottery operation is allowed and the Lottery chooses its own contractors. Advance deposit wagering hubs, the eight active licences counted here, must keep a call centre or business office in Oregon and locate totalizator equipment in the state (OAR 462-220-0030(9)), which is why the local establishment and server fields are true.

Licence types

  • Lottery vendor contract (sports betting service provider)

    Scope
    Operating the Lottery's digital sports betting game on its behalf; held by DraftKings through its affiliate Crown OR Gaming LLC
    Term
    Seven years from the 18 January 2022 launch, with extensions negotiable
    Fee basis
    Not a licence: the Lottery procures the service. DraftKings is paid 49% of net receipts (wagers less prizes, excluding player incentives) and 51% of player incentives and other costs, with incentives capped at 15% and player costs at 4% of net receipts.
    Renewal terms
    The contract can generally be terminated only for breach or a change in the legal standing to offer sports wagering.

  • Video Lottery retailer contract

    Scope
    Placing up to six Video Lottery terminals in an establishment with an on-premises liquor licence (ten at a race meet), in an area closed to minors
    Fee basis
    Retailers are paid a commission by the Lottery; applicants join a waitlist, must have operated for nine months and must pay a nonrefundable network service installation fee if selected.

  • Multi-Jurisdictional Simulcasting and Interactive Wagering Totalizator Hub (advance deposit wagering) licence

    Scope
    Account wagering on horse and other animal races for Oregon and out-of-state residents
    Term
    5 years, subject to annual audits
    Fee basis
    Licence fee of $200 for each day the hub is scheduled to operate, paid with the application, plus 0.125% of the first $60 million of handle and 0.25% above that, or 0.25% of handle, up to an annual cap ($838,027.88 for fiscal 2025 to 2026) (OAR 462-220-0030, 0040).
    Renewal terms
    Renewal applications are due at least 60 days before 30 June of the fifth year.

  • Exchange wagering licence

    Scope
    Exchange wagering on horse races, in person, by telephone or electronically
    Fee basis
    The Commission may charge up to 2% of exchange revenue (ORS 462.334).

  • Charitable gaming licence (bingo, raffle, Monte Carlo event)

    Scope
    Tax-exempt nonprofits that have held exemption for at least one year; not required below $5,000 a year of bingo or Monte Carlo handle or $10,000 of raffle handle
    Term
    Up to 12 months
    Fee basis
    Licence fees from $20 to $300 depending on activity and handle, plus reporting fees by class.
    Renewal terms
    Renewal applications with quarterly or annual reports.

Taxation

Headline GGR tax
Not yet verified
Effective date
Not yet verified
Player winnings tax
State lottery prizes of $600 or less are exempt from state and local tax; larger prizes are subject to Oregon income tax (ORS 461.560). The Lottery withholds 8% state tax on prizes of $1,500 or more, and 24% federal tax on non-Video Lottery prizes over $5,000.
Withholding mechanism
The Lottery withholds at payment and issues Form W-2G; for digital sports betting prizes the withholding and any child support or state debt offsets are deducted in the player account (OAR 177-046-0110(1)(i), (j)). Prizes over $600 are checked against the child support arrears database and may be held for 30 days (ORS 461.715).
Tax base
No gaming tax applies to the Lottery, a self-supporting state agency: after prizes (at least 50% of revenue) and expenses (at most 16%), all net proceeds are transferred to the state (ORS 461.500; Or Const art XV, s 4). For sports betting the state keeps its share of net receipts after paying DraftKings 49% under contract. Advance deposit wagering hubs pay the Racing Commission 0.125% of the first $60 million of handle and 0.25% above that, or a flat 0.25%, up to an annual cap (OAR 462-220-0040). Race meet licensees may take no more than 22% of mutuel pools (ORS 462.140).

Earmarked levies

  • Education stability fund: 18% of Lottery net proceeds (Education stability fund, or 15% to the school capital matching fund when the fund exceeds its cap)
  • Parks and natural resources fund: 15% of Lottery net proceeds (Split equally between state and local parks and native fish, wildlife and watersheds)
  • Veterans services: 1.5% of Lottery net proceeds (Veterans services fund (art XV, s 4f))
  • Problem gambling treatment: At least 1% of Lottery transfers to the Administrative Services Economic Development Fund (Problem Gambling Treatment Fund (ORS 461.549))
  • County economic development: 2.5% of Video Lottery net receipts (Counties, 90% by Video Lottery receipts and 10% equally (ORS 461.547))
  • Sports Lottery Account: 1% of Lottery transfers to the Economic Development Fund (Public university athletics and scholarships (ORS 461.543))
  • Hub wagering fees: Up to 1% of hub gross receipts under statute (25% to the General Fund, 75% retained by the Racing Commission for the racing industry (ORS 462.725(5)))

Compliance

Minimum age
21+
National self-exclusion
Not yet verified
KYC timing
At account registration, before any bet.
AML regime
Money laundering, bookmaking and use of stolen cards are prohibited conduct; player accounts may be monitored and activity reported to law enforcement, regulators, governing bodies and financial institutions (OAR 177-046-0022(5), (6); 177-093-0050(3)).
Deposit limits
Players may set their own deposit, bet and time limits and self-exclude within the player account (OAR 177-046-0155); the Lottery says DraftKings offers daily, weekly and monthly limits, cool-off periods of up to a month and self-exclusion for up to five years. Advance deposit wagering hubs must offer self-exclusion for one, three or five years or life (OAR 462-220-0030(3)(c)).
Source of funds thresholds
Winners of more than $600 must give the information on IRS Form W-2G, including a social security or taxpayer number (OAR 177-046-0110(1)(i)).
Data localisation
Advance deposit wagering hubs must locate their totalizator equipment in Oregon (OAR 462-220-0030(9)).
KYC requirements
A digital player account requires the player to be 21 or over, hold only one account in their own name, consent to geolocation and to verification of age and identity by third parties, and supply government photo identification and proof of address if asked (OAR 177-046-0022). Bets may be placed only from within Oregon and not on tribal lands, which the Lottery must be able to verify (OAR 177-093-0020(4)). Lottery tickets may not be sold to anyone under 18 and Video Lottery terminals may not be played by anyone under 21 (ORS 461.600).
Stake limits
The Lottery may impose minimum and maximum bet and prize limits by sport, odds and risk; bets may not exceed the player balance and no credit is extended (OAR 177-093-0025).
Mandatory player messaging
Lottery communications must report odds accurately, not appeal specifically to vulnerable groups including under-18s, and integrate responsible gambling messages (ORS 461.820); tickets must show odds, payout percentage and the statement that lottery games are based on chance and should not be played for investment purposes (ORS 461.220(2)).
Reporting obligations
The Lottery checks winners of more than $600 against the child support arrears database and holds payment for 30 days if listed (ORS 461.715). Advance deposit wagering hubs must retain account records for at least three years or the length of any self-exclusion, and give the Racing Commission access to wagering data (OAR 462-220-0030(10), (11)).
Game content restrictions
No wagering on college sports through the Lottery; bets only on events of a recognised governing body (OAR 177-093-0020(6)); no bets on historical animal racing from phones or personal computers (ORS 462.157); no more than six Video Lottery terminals a venue, ten at a race meet (ORS 461.217); lottery terminals may never dispense coins or currency (Or Const art XV, s 4(4)(c)).

Minimum age by vertical

  • Online sports betting: 21+
  • Horse race betting: 18+

Advertising

Advertising permitted
Yes
Affiliate rules
Affiliates are not licensed. Promotion that materially aids unlawful gambling is itself an offence (ORS 167.117(18)). Affiliate sites of an advance deposit wagering hub must be listed in its operating plan, branded as the hub's and approved by the Racing Commission (OAR 462-220-0030(3)(f)).
Bonus advertising rules
Lottery bonuses and free bets have no cash value, cannot be withdrawn and are subject to terms disclosed on the app or site (OAR 177-093-0020(5); 177-046-0027(5)).
Mandatory warnings
"Lottery games are based on chance, should be played for entertainment only and should not be played for investment purposes." Broadcast and print ads: "The odds of winning some prize are one in (some number). The prize payout percentage is (some number)." Billboards: "Need help with problem gambling? Call or text" followed by a helpline number (ORS 461.220).
Penalties for breach
Retailers who breach the contract rules face action under the retailer contract, up to termination; rules on contract compliance actions go to the Commission on 25 September 2026.

Restrictions

  • Television, radio and newspaper advertising of a lottery game must state the odds of winning some prize and the prize payout percentage, and all Lottery-funded television, radio and newspaper advertising must say that lottery games are based on chance, should be played for entertainment only and should not be played for investment purposes (ORS 461.220(5), (6)).
  • Billboards promoting a lottery game must carry the investment disclaimer and a problem gambling helpline statement (ORS 461.220(8)); spoken disclaimers are required in broadcast advertising and must also be shown on screen on television (461.220(10)).
  • Lottery advertising and marketing must not appeal specifically to vulnerable groups, including under-18s, and must report the odds accurately (ORS 461.820(2)(i)).
  • Retailers may not advertise falsely or misleadingly, use the word lottery in their business name, extend credit or loans to players, or offer alcohol as an inducement to play (OAR 177-040-0055); limits on retailer advertising are one of the tools used to stop Video Lottery venues operating as casinos (OAR 177-040-0061).
  • Advance deposit wagering hub advertising must include responsible wagering messaging, and self-excluded account holders must be removed from direct advertising and promotions (OAR 462-220-0030(3)(c)).
  • Soliciting or inducing people to take part in unlawful gambling is promoting unlawful gambling, a Class C felony (ORS 167.117(18), 167.127), which covers advertising for private online sportsbooks and casinos.

Payments

Credit card ban
No
Crypto stance
Not yet verified
Permitted methods
Deposits to a digital player account held by the Lottery's contractor, subject to its terms of use, Credit or debit cards for buying lottery tickets at retail, Cash, cheque or money order for retailer prize payments of $600 or less
Payment blocking regime
An Internet gambling business may not knowingly accept credit, credit card payments, electronic funds transfers, money transmissions or cheques in connection with unlawful Internet gambling, a Class C felony (ORS 167.109); banks and payment networks processing such transactions are not liable (ORS 167.112).
Withdrawal timeframe rules
Players may withdraw up to the funds balance at any time, subject to the terms of the account holder and payment processors; the Lottery holds no player money itself (OAR 177-046-0027). Hub account holders may file a claim with the Racing Commission, which can order a correction within 10 days and draw on the hub's security (OAR 462-220-0030(7)).

Enforcement

ISP blocking
Not yet verified
DNS blocking
Not yet verified
Payment blocking
Not yet verified
App store takedowns
Not yet verified
Administrative penalties
The Lottery may void bets, withhold prizes and suspend or close player accounts for prohibited conduct or integrity concerns (OAR 177-093-0045, 0050) and terminate retailer contracts. The Racing Commission may refuse, suspend or revoke licences and impose civil penalties (ORS 462.090).
Criminal penalties
Unlawful gambling in the second degree (playing, or betting with a bookmaker): Class A misdemeanour (ORS 167.122). Promoting or profiting from unlawful gambling: Class C felony (167.127). Accepting payments for unlawful Internet gambling: Class C felony (167.109). Possessing a gray machine: Class C felony (167.164). Cheating: Class C felony (167.167).
Operator liability
Attorney General Opinion 8297 (2025) advises that private businesses offering sports betting, fantasy sports, esports betting or casino games online to Oregonians offer gambling and risk the offences in ORS 167.108 to 167.167. The Lottery must fund at least three undercover officers to enforce the ban on gray machines (ORS 461.725), a role carried out by the State Police Lottery Security Section.
Player liability
Participating as a player in unlawful gambling, or placing a bet with a bookmaker, is a Class A misdemeanour (ORS 167.122).

Market data

Figures on this record are drawn from official regulator data.

Online GGR
$105,275,524 as of 30 Jun 2025
Reporting year
2025

GGR by vertical

  • Online sports betting: $105,275,524 as of 30 Jun 2025

Timeline

  1. 6 Nov 1984

    Voters adopt the initiative amending Article XV, section 4 of the constitution to create the State Lottery Commission

  2. 25 Apr 1985

    First Oregon Lottery tickets go on sale

  3. 28 Aug 1989

    Lottery rules for Sports Action, a parlay game on sporting events, first take effect

  4. 2001

    Legislature makes accepting payments for unlawful Internet gambling a felony (ORS 167.109)

  5. 1 Oct 2019

    Temporary rules for digital player accounts take effect as the Lottery launches online sports betting (Scoreboard) in October 2019

  6. 18 Jan 2022

    DraftKings Sportsbook, Official Provider of the Oregon Lottery, replaces Scoreboard

  7. 15 Jun 2022

    Permanent DraftKings Sportsbook rules (OAR 177-093) take effect

  8. 27 Sept 2025

    Rules implementing HB 3115 take effect: winner anonymity and denial of prizes on illegally purchased tickets

  9. 13 Nov 2025

    Attorney General Opinion 8297 finds private online sports betting, fantasy sports, esports betting and online casino games are gambling under Oregon law

  10. 1 Jan 2026

    Courier rules take effect, prohibiting retailers from selling tickets to anyone outside Oregon

  11. 1 May 2026

    Rules prohibiting the sale of interests in Lottery tickets and matching services take effect

  12. 25 Sept 2026

    Lottery Commission meeting scheduled to consider final rules on retailer contract compliance actions

Outlook

The Lottery Commission meets on 25 September 2026 to consider final rules on contract compliance actions against retailers, and again on 30 October, 20 November and 18 December 2026. The state forecast used in the FY2025 financial report projects Lottery resources of $1.776 billion for the 2025 to 2027 biennium, $75 million less than in 2023 to 2025, mainly because of falling Video Lottery sales, with sports betting and traditional games expected to offset part of the decline. The DraftKings contract runs for seven years from January 2022. No gaming bill or licensing round was confirmed for the next 12 months.

Frequently asked questions

Is online sports betting legal in Oregon?
Yes, but only through the Oregon Lottery, whose sports betting game runs as DraftKings Sportsbook, Official Provider of the Oregon Lottery. Players must be 21 or over and inside Oregon, not on tribal lands, when they bet. College sports are not offered.
Can another sportsbook get an Oregon licence?
No. The constitution allows only one State Lottery operation and there is no licensing regime for private sportsbooks; DraftKings operates as the Lottery's contractor. The Attorney General advised in November 2025 that private online sports betting offered to Oregonians is gambling.
Are online casino games and poker legal in Oregon?
No. The constitution bans casinos, poker and other casino games are gambling under ORS 167.117, and the Lottery offers no online casino games. Promoting unlawful gambling is a Class C felony and playing it a Class A misdemeanour.
Can Oregonians bet on horse racing online?
Yes, through advance deposit wagering hubs licensed by the Oregon Racing Commission, such as TwinSpires, TVG, Xpressbet, NYRA Bets and DraftKings Racing. Hubs licensed in Oregon must make accounts available to Oregon residents.
How are Oregon Lottery and sports betting winnings taxed?
Prizes of $600 or less are exempt from state tax; larger prizes are subject to Oregon income tax. The Lottery withholds 8% state tax on prizes of $1,500 or more and 24% federal tax on non-Video Lottery prizes over $5,000.
Is daily fantasy sports legal in Oregon?
There is no fantasy licensing law, and Attorney General Opinion 8297 of November 2025 concludes that paid fantasy sports offered online is gambling under Oregon law.

Sources

  1. Oregon Lottery website (home page)

    Oregon State Lottery

    Tier 1Accessed 23 Sept 2026
  2. How We Operate: mission, commission, reports and legal framework

    Oregon State Lottery

    Tier 1Accessed 23 Sept 2026
  3. Commission and Director Info (commissioners, director, meeting schedule)

    Oregon State Lottery

    Tier 1Accessed 23 Sept 2026
  4. Help and FAQs (minimum ages, online play, prize reporting)

    Oregon State Lottery

    Tier 1Accessed 23 Sept 2026
  5. You Won! How to Claim Your Prize (tax and payout information)

    Oregon State Lottery

    The page gives the 8% state withholding threshold as prizes of $1,500 or more; ORS 461.560 as amended in 2025 makes prizes over $600 subject to state income tax. The two thresholds govern different things (withholding and taxability) and are both recorded.

    Tier 1Accessed 23 Sept 2026
  6. DraftKings Questions and Answers (transition from Scoreboard, college wagering, daily fantasy)

    Oregon State Lottery

    Tier 1Accessed 23 Sept 2026
  7. Lottery Rulemaking: proposed and recent rules

    Oregon State Lottery

    Tier 1Accessed 23 Sept 2026
  8. Oregon Lottery Annual Report 2025

    Oregon State Lottery

    Tier 2Accessed 23 Sept 2026
  9. Annual Comprehensive Financial Report for the fiscal year ended 30 June 2025

    Oregon State Lottery

    Tier 2Accessed 23 Sept 2026Published 1 Dec 2025
  10. Oregon Constitution, Article XV, sections 4, 4a, 4b, 4c and 4f (lotteries; use of net proceeds; veterans share; casinos prohibited)

    Oregon Legislature, Legislative Counsel

    The legislature's website (oregonlegislature.gov) timed out from our network on 2026-09-23; the official page was read through the Internet Archive capture given in archiveUrl.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  11. ORS chapter 461, Oregon State Lottery (2025 edition)

    Oregon Legislature, Legislative Counsel

    The legislature's website (oregonlegislature.gov) timed out from our network on 2026-09-23; the official page was read through the Internet Archive capture given in archiveUrl.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  12. ORS chapter 167, including ORS 167.108 to 167.167 (gambling offences) (2025 edition)

    Oregon Legislature, Legislative Counsel

    The legislature's website (oregonlegislature.gov) timed out from our network on 2026-09-23; the official page was read through the Internet Archive capture given in archiveUrl.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  13. ORS chapter 462, Racing (2023 edition)

    Oregon Legislature, Legislative Counsel

    The legislature's website (oregonlegislature.gov) timed out from our network on 2026-09-23; the official page was read through the Internet Archive capture given in archiveUrl. The latest capture available is the 2023 edition; any 2025 amendments to chapter 462 were not checked.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  14. OAR 177-093, DraftKings Sportsbook

    Oregon Secretary of State, Oregon Administrative Rules

    Tier 1Accessed 23 Sept 2026
  15. OAR 177-046, Lottery Games General Operating Rules (player account, funding, prizes, responsible gaming)

    Oregon Secretary of State, Oregon Administrative Rules

    Tier 1Accessed 23 Sept 2026
  16. OAR 177-040, Retailer Contract (video lottery applications, courier services, advertising, casino prohibition)

    Oregon Secretary of State, Oregon Administrative Rules

    Tier 1Accessed 23 Sept 2026
  17. OAR 177-090, Sports Action

    Oregon Secretary of State, Oregon Administrative Rules

    Tier 1Accessed 23 Sept 2026
  18. OAR 462-220, Multi-Jurisdictional Simulcasting and Interactive Wagering Totalizator Hub

    Oregon Secretary of State, Oregon Administrative Rules

    Tier 1Accessed 23 Sept 2026
  19. Oregon Racing Commission: About Us

    Oregon Racing Commission

    Tier 1Accessed 23 Sept 2026
  20. Advance Deposit Wagering: licensed ADW and totalizator companies, handle reports and fee cap

    Oregon Racing Commission

    Tier 1Accessed 23 Sept 2026
  21. Quarterly Multi-Jurisdictional Wagering Handle 2026 (Q1 and Q2)

    Oregon Racing Commission

    Tier 2Accessed 23 Sept 2026
  22. Quarterly Multi-Jurisdictional Wagering Handle, historical (2021 to 2025)

    Oregon Racing Commission

    Tier 2Accessed 23 Sept 2026
  23. Oregon State Police Gaming Enforcement (Lottery Security, Tribal Gaming and Vendor Investigations sections)

    Oregon State Police

    Tier 1Accessed 23 Sept 2026
  24. Charitable Gaming FAQs and Resources

    Oregon Department of Justice, Charitable Activities Section

    Tier 1Accessed 23 Sept 2026
  25. Attorney General Opinion No. 8297: online sports betting, fantasy sports, esports and online casino games as gambling

    Oregon Department of Justice

    Tier 1Accessed 23 Sept 2026Published 13 Nov 2025

Spotted something out of date? Report a correction.

This page is industry reference information and not legal advice.

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