When it comes to gambling and casino industry regulation on the territory of the US, the situation is quite complex with both land-based and online sectors. Even though gambling is legal under federal law, each state is free to regulate some matters or restrict some activities within its own borders.
Some US states that have proclaimed gambling in all its forms as illegal, while there are states where all types of gambling are legalized. In a vast majority of states, the gambling scene could be described as “balanced”, as some forms of gambling are legal, and others are not.
Gambling Laws in the United States
Before introducing you to the list of US states in which online gambling is legal, let us go through key legislation. The following four Acts represent the foundation for legalization on a federal level, but each state is given the freedom to legalize or prohibit certain types of gambling within its own borders.
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- The Interstate Wire Act of 1961
Also known as the Federal Wire Act, this federal law of the US bans some types of betting activities on the territory of the country. Passing the Act was a result of Attorney General Robert F. Kennedy’s suggestion to proclaim interstate gambling out of the law.
The Act was officially enacted by the US Congress to put a stop to organized gambling activities. The Interstate Anti-Crime Acts were signed by the 35th President of the United States John F. Kennedy on September 13, 1961.
- Professional and Amateur Sports Protection Act (PASPA) aka Bradley Act
Passed in 1992, this act was meant to define the legal status of sports betting throughout the United States. To be more precise, this law was supposed to prohibit sports betting throughout the entire US, except in states where land-based sports betting was legal at the time PASPA was implemented, or, in any State which authorized sports betting within one year of PASPAs implementation date. At that time, only Nevada, Delaware, Oregon, and Montana were exempted.
However, PASPA was judicially overturned in 2018. The entire process was started in 2009 by New Jersey State Senator Raymond Lesniak who filed a lawsuit in the United States District Court for the District of New Jersey claiming that the act was discriminatory, among all. In May 2018, the Supreme Court ruled that PASPA was unconstitutional, allowing other states interested in opening sports betting markets to do so.
Unlawful Internet Gambling Enforcement Act (UIEGA)
Encompassing the regulation of online gambling in the US, The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) was enacted to block payments from financial institutions to interactive gambling sites. Under the provisions of the Act, the gambling business is prohibited from knowingly accepting payments related to online casinos. Banks and other financial institutions were also banned from processing such transactions.
The act specifically excludes fantasy sports that meet certain requirements, skill games, and legal intrastate and intertribal gaming, but it gives no directions with regard to state lotteries, interstate wagering, or horse racing.
- The Restoration of America’s Wire Act (RAWA)
The Restoration of America’s Wire Act, also known under the abbreviation RAWA, is a new version of the Act that was officially reintroduced in the 2015 session of the US Congress. Initially named the Internet Gambling Control Act, this bill sought to restore the 1961 Act and rewrite it to include the specific prohibition of online gambling.
One of the key shortcomings of RAWA is that it doesn’t include already existing web-based gambling activities that are independently regulated in certain US states. In May 2016, Congressman Charlie Dent removed language that supported the Restoration of America’s Wire Act in the House Appropriations bill.
How Is Online Gambling Regulated in the United States?
Speaking of online gambling, the Government of the US has been relatively slow to react to Internet gaming operations. As a matter of fact, the first gambling websites started to appear in the early 1990s. At this time, there was no official gambling law or even set of guidelines in order to impose a certain regime on such websites used by local players.
Over this time, any citizen of the US was able to place their wagers on the Internet and use a credit card or a debit card in order to finance their accounts registered on such gambling websites. This was changed in 2006 after these types of payments were blocked by US banking institutions due to President George Bush’s initiative to sign into law the Safe Ports Act.
After the UIGEA was officially introduced, several states passed their own pieces of legislation concerning online gambling and presented rules for regulation on the matter. These actions resulted in the creation of a number of legal and regulated casino websites that are accepting residents of those states. Several other states are considering doing the same.
In most US states, there is still some confusion related to what is exactly legal and what is not. It is mainly because of the legislation implemented in 2006. This is exactly the reason why a lot of casino websites have made the decision to stop accepting customers from the US.
List of US States Where Online Gambling is Legal
Thanks to the rapid development of modern technologies, a growing number of states, countries, and territories have opened their doors to iGaming. The United States is one of the fastest-expanding markets. As of August 2023, the following US states have their respective online casino industries up and running:
- Online Gambling in Nevada
Nevada has always been considered one of the leading gambling and casino destinations not only in the US but worldwide. This is mainly thanks to the city of Las Vegas, which has become a synonym for gambling for millions of people from all over the world.
This state has already legalized and successfully regulated Internet gambling operations within its borders. Currently, there are two organizations that are focused on monitoring and regulating casino operations in the state – the Nevada Gaming Commission and the Nevada Gaming Control Board. Online gambling here was legalized by passing the relevant legislation in February 2013.
Lotteries and racetracks are the only forms of gambling that are not permitted in Nevada. Online gambling aside, charitable, pari-mutuel, commercial, tribal, and sports betting are permitted in the state.
- Online Gambling in New Jersey
New Jersey has also become an epitome of Internet casino and gaming operations, as the gambling industry here is really big. As a matter of fact, Atlantic City is ranked second only to Nevada in the territory of the US when it comes to gambling-related tourism.
The state of New Jersey has actually spent a couple of years exploring the possibility of online casino legalization and regulation, which is why, alongside Nevada and Delaware, it became one of the first US states to legalize online gambling.
In 2012, the state’s Casino Control Act was passed by the State Senate, and so web-based casinos and poker rooms were legalized. All forms of gambling are permitted here.
- Online Gambling in Delaware
Some forms of gambling and casino operations have been legalized in the territory of the state of Delaware for a long time now. Actually, Delaware has been considered one of the more liberal states when it comes to betting and gaming as a whole, which explains why it ended up among iGaming legalization pioneers in the US.
The first steps of the state toward legalization and regulation of online gambling were taken in 2012. This was the year when the State Senate passed the Delaware Gaming Competitiveness Act. Just like in New Jersey, all forms of gambling are permitted.
- Online Gambling in Michigan
Michigan joined the states in which online gambling is legal in January 2021. The following ten companies were the first ones to go live in the market immediately upon the launch- Barstool, BetMGM, BetRivers, DraftKings, FanDuel, Golden Nugget, PointsBet, TwinSpires, William Hill, and WynnBet.
Bodies in charge of regulating the casino industry in the state include the Michigan Gaming Control Board, Michigan Bureau of State Lottery, and Office of Racing. Online gaming is taxed on a tiered system which starts at 20% of the gross win up to $4m and increases to 28% of the gross win over $12m.
- Online Gambling in Pennsylvania
Pennsylvania belongs to the states where multiple forms of gambling are permitted- lottery, land-based casinos, racetracks, land-based and interactive sports betting, pari-mutuel wagering, and charitable gambling. In charge of supervising and regulating the gambling industry is Pennsylvania Gaming Control Board (PGCB).
Taxes vary based on the type of gambling activity. Applied both on land-based and interactive sectors, slot machines are taxed at 54% of gross win, while table games are taxed at 16% of gross win. As for land-based and interactive sports betting, this activity is taxed at 36% of gross win.
- Online Gambling in West Virginia
In West Virginia, licensed operators are permitted to offer interactive betting and gaming. When it comes to taxes, online casino games, and online poker are taxed 15% of the gross win, while interactive sports betting is taxed 10% of the gross win.
Regulatory bodies tasked to regulate and supervise the casino industry include West Virginia Lottery Commission, West Virginia Racing Commission, and the West Virginia Charitable Organisations Division. The minimum gambling age for interactive gambling is 21.
- Online Gambling in Connecticut
Connecticut is also among the US states where online gambling is legal, but the only difference compared to the abovementioned states is that it is offered by tribes. Mashantucket Pequot and Mohegan tribes operate iGaming in the state.
Key legislations are Connecticut General Statutes (sections 52-553) and Tribal Gambling Expansion Bill – HB6451, whereas the Connecticut Division of Special Revenue is a relevant regulatory body. Other forms of gambling permitted in this territory include retail and online sports betting, land-based and online lottery games, as well as land-based and interactive horse and greyhound racing.
Worth noting is that there are a couple of states in which interactive gambling is neither prohibited nor expressly regulated under state law. Those are, for example, Georgia, Kentucky, Minnesota, Montana, New Hampshire, New Mexico, Ohio, South Carolina, Virginia, and a couple of more.
In Tennessee, interactive gaming is not expressly encompassed in the legislation, but it is subject to age conditions. This means that only consumers who are 21 or older can gamble online.
Also, the situation with New York is rather confusing, as interactive gambling is not permitted, but its legalization is actively considered. The only exception is Advanced Deposit Wagering (ADW), which allows consumers to place wagers through online platforms and mobile apps, but only after funding their accounts.
How to Stay Safe While Gambling Online in the United States?
On this page, you will find the list of online casinos licensed by some of these states, which are fully approved to offer gambling products and services to residents of these countries.
If looking for more options, players can also visit social casinos, which allow players to play a gamble-related game on a social media platform by using a virtual currency, often known as sweepstakes. These virtual currencies can be given for free or purchased, but they cannot be redeemed for real money.
In addition to this, the internet is filled with online casinos welcoming players from the United States, most of which are either unlicensed or licensed in Curacao. Most commonly, those are platforms powered by Realtime Gaming, but they may also offer games from other US-friendly developers such as Rival, Arrows Edge, Mobilots, Saucify, Slotland, NuWorks, BetSoft, and so on.
When visiting offshore casinos which accept players from the US, consumers should always check the license to see if the platform is legit. If the answer is positive, then they can proceed and explore other segments such as payment methods, banking policy, game availability, as well as bonuses, and promotions.
Finally, other players’ opinions can be of great help when making up your mind as well. Check the forums for comments and experiences, read as many reviews as you can beforehand, and then make a deposit and enjoy playing games.
Gamble responsibly!
