What Is a Legal Sportsbook?

A sportsbook is an establishment that accepts wagers on a variety of sporting events. These betting outlets can be found in brick and mortar casinos or online. They may offer a range of betting options, including moneyline bets, spread bets and prop bets. They may also offer a variety of payment methods, including Bitcoin. However, it is important for a sportsbook to work with well-known payment processors in order to improve its reputation and protect client data.

A legal sportsbook is regulated and operates under the supervision of a state or provincial authority. It is licensed to accept bets from residents of a particular jurisdiction and must pay out winning bets immediately. It must also have sufficient capital to cover all incoming bets and payouts, even if it loses a game. In addition, a sportsbook must maintain its accounting records and update them regularly to ensure compliance with federal gambling laws.

Legal sportsbooks are also required to offer a high-quality user experience and to meet strict usability and accessibility standards. This includes a clean design, clear menus and intuitive navigation. It is also critical for sportsbooks to offer a wide range of markets, as this helps attract more customers and encourage them to continue placing bets with the company.

Many illegal sportsbooks operate from offshore locations. These unregulated operations exploit U.S. consumers by taking advantage of lax or nonexistent gambling laws in their home countries. Unlike reputable and regulated sportsbooks, these offshore books fail to uphold key consumer protection principles such as responsible gaming, privacy and more. They also avoid contributing to local and state economies by avoiding paying taxes.