USA Gambling Laws
Gambling laws in the United States tend to be a patchwork of different rules which vary based on where you reside. They do not resemble the straightforward, over-arching, nationwide law you see in other countries. However, with the way that federal laws and state laws work, this is to be expected. Similar results can be found in Germany, which also adopts a federal system. Getting through the legal quagmire and finding out if gambling is permitted in your state can be challenging if you don’t know where to look. Fortunately, on this page, we will try and roll out this bag of twisted snakes and help you decipher what you can and cannot do concerning gambling in your state.
Illustration depicting the patchwork of US state flags symbolizing the varying online USA gambling laws.
Can I Gamble Online in the USA?
Let’s start with the most pressing question. Can you gamble online in the USA?
Most US states have laws which prevent you from gambling online. However, there is a handful which has started to regulate the industry and do permit it. Moreover, there are a couple of additional states which are, at least, looking at the possibility of making online gambling a reality. To date, if you reside in any of these states, you can bet online, with a few caveats…
- Fully Legal: In New Jersey and Pennsylvania, it is legal for players to wager on online casino, online poker and sports betting games.
- Partially Legal: Players who live in Nevada can wager on poker and sports betting online, and they can access online casino games, provided they are staying at a casino resort. However, they can only play at the online casino associated with that resort. Those players in Delaware can wager on online casino and poker games but are not permitted to bet on sports.
- Sports Betting Only: Players residing in Indiana, Iowa, New Hampshire, Oregon, Rhode Island and West Virginia are permitted to place online sports bets.
- Not Legal: At the time of writing, gambling is not legal in other states. However, there is work afoot in some of them, to possibly alter that position.
Right now, Michigan and Colorado are considering legalising all forms of online gambling. Illinois, North Carolina and Tennessee are contemplating legalising sports betting. Meanwhile, Montana is of the mind to legalise online casino and sports betting, but not poker. In some states, such as Michigan and Colorado, laws have already been passed to legalise betting games and internet sports wagers. However, gambling sites have not yet launched. This is something you might want to keep an eye on in the future.
A Brief Look at the Early Gambling Laws in the United States
The United States has had a love-hate affair with gambling in the past. Lotteries were instrumental in the early days of the country as a way of generated rapid revenue. By the mid-1800s, public opinion had shifted. Underworld figures were pocketing a sizeable chunk of change, but for the authorities in charge, it was a different story. Gambling was frowned upon if not outright banned.
Following the stock market crash of 1929, many authorities once more turned their eyes to gambling, and Nevada began to transform the desert into what would one day become the Las Vegas Strip. Within two decades, the story would see-saw in favour of banning gambling again. What was once a dust bowl offering casino games in the middle of nowhere, suddenly became important to people. Nevada was the place to be if you wanted to bet online.
Nevada wasn’t alone. Atlantic City in New Jersey sprang up to rival Las Vegas in 1977. Lotteries and pari-mutuel betting options followed, and even riverboat casinos sprang up in Louisiana and some southern states.
The Federal Wire Act Changes Things
As long as there has been some form of gambling, there have been people exploited it. To get around underworld bosses and other shady characters taking advantage of gambling to line their pockets unfairly, the Federal Wire Act came into force. Introduced in 1961, it prohibited betting businesses, put paid to interstate sports betting, and promised fines or prison sentences for those who broke the law. As a federal law, this applied everywhere.
When the Federal Wire Act was brought into being, it didn’t take into consideration the prospect of internet gambling. How could it have done? It was the 1960s. The Federal Wire Act was designed to counter the forms of betting currently in existence. It didn’t hold much water for online gambling.
The problem with the Federal Wire Act was that it was outdated. Following a Department of Justice review in 2018, the DOJ decided to “reinterpret” the Federal Wire Act. The reinterpretation envisions the FWA extended beyond sports betting. However, no new plans are currently in place to enforce the new interpretation of the Wire Act until late 2020.
The US Introduces the UIEGA
The limitations of the Federal Wire Act were clear for all to see. Something else needed to be done to prevent internet gambling exploding. This came in 2006 and is known as the UIGEA, or Unlawful Internet Gambling Enforcement Act. What the UIGEA 2006 does is make it illegal for banks and other monetary institutions to process transactions which are known to be used for gambling.
Such a move was devastating for online casino operators in the United States. Unsurprisingly, many moved offshore. Most snapped up easy-to-obtain licenses from Curacao and neighbouring countries. However, these licenses are considered less legitimate that those out of Malta, or the United Kingdom. The primary reason is that Curacao and its surrounding licensing jurisdictions do not regulate the casinos it hands licenses to.
From 2015 onwards, many US states have decided to take gambling laws into their own hands. They are freely allowed to do this, and as we’ve seen above, quite a few are now legalising or have already legalised gambling games.
Online Gambling in the United States
To date, the US is a patchwork of laws where gambling is legal in one state, and not in another. Because of the Federal Wire Act, it is not lawful to gamble across state lines wherever you reside. However, if you are living in one of the states where gambling is legal, you are permitted to bet online.
US players can only legally wager at regulated and licensed casinos from within the state where they reside. However, US players living in states where gambling isn’t legal aren’t (and never have been) short of options.
Since the introduction of the UIGEA act in 2006, these US citizens have turned to “offshore” or “foreign” casinos to play. These sites typically cater to American players and accept the US dollar as their currency of choice. The use of Bitcoins, prepaid cards and other means of payment has helped US players get around financial restrictions, too.
While, in theory, it is illegal for any US players to wager at offshore casinos, there are no punishments for doing so. With that in mind, it is not surprising to see US players in these states where gambling is restricted bet online.
Why Play at a US Online Casino?
There are benefits from playing at US online casinos. First and foremost, there is the obvious. You will save yourself a fortune by staying at home, and not having to travel the glitzy and glamorous Las Vegas, or its Eastern counterpart, Atlantic City. You won’t have to wait to play games, you can walk away at any time, and you’ll generally have a more extensive selection of titles to choose from.
Of course, there are a few other perks to playing at US online casinos over brick-and-mortar ones, too, such as:
- Bonuses and Promotions: Many US casinos offer a top array of promotions. These can see you claim free money when you deposit, and this can be used to play games with a larger budget. There are terms and conditions attached, of course, and these vary from site to site. However, these offers aren’t typically found in land-based venues. Bonuses and promotions may include welcome bonuses, deposit bonuses, free spins, cashback deals, loyalty offers and a VIP club, amongst others.
- A Greater Array of Games: Depending on where you play, you should be able to play a broader range of games from a more significant number of providers than you could in a land-based casino. While a brick-and-mortar venue may have a one or two roulette or blackjack games, online casinos often carry dozens. The same is true of slots, with often hundreds of different games there for you to play. Each will have its own volatility level, RTP rate and wagering limits, so you’ve got more bounce for your buck.
- Live Casino Games Offer Realism: If you miss the atmosphere of playing at a table with real people, you can still get that, to a degree, online. Live dealer casino games are played with real-to-life human dealers over a video stream, and some competitions allow you to wager against other players. You can converse with the dealer and bet in real-time.
- Support and Assistance: Most land-based casinos aren’t going to provide you with too much help and assistance. Many US online casinos provide around the clock support via live chat, e-mail and telephone, though. Some even go as far as providing how to play guides at their site, and free games, so you can learn how to play something before you wager real money on it.
- No Deposit Bonuses: These offer US players the chance to sign up and play for free, with the potential to win real money. If you aren’t satisfied with the casino’s service, you can walk away before you wager any of your own cash. This is a risk-free, try before you buy deal which should not be missed.
Finding the Best US Online Casinos
Don’t just sign up at any online casino you come across. There is a wealth of offshore and local online casinos out there for you to choose from, so you really can afford to be picky. Before becoming a new member of a US online casino, we’d recommend you note the following points…
- Safe, Licensed and Secure: If you are residing in a state which has legalised online casino games, you should play at one of those. It is legal for you to do so, you’re not breaking any law, and these sites are licensed, secure and safe. However, if you decide to play at an offshore casino, it is recommended that you try and choose one which has the most reputable license you can find. Casinos licensed and regulated out of Malta and the UK are better than those out of Kahnawake and Curacao, which in turn are safer than those out of Panama.
- Fair Terms and Conditions: Always read the terms and conditions of any casino’s bonuses before you decide to sign up and claim them. Getting $10,000 for joining and depositing sounds excellent, but if it is met with wagering requirements of 50x, you’re going to need to wager a lot before you can withdraw.
- Withdrawal Terms: Speaking of withdrawals, it is worth looking at the cashier page, too. Some sketchy casinos have low withdrawal limits, long transaction times, or ask you to pay a fee to cash out your winnings. You want fast withdrawal times without added charges and a nice and high withdrawal limit.
- Mobile-Friendly, Instant Play Action: Downloadable casinos are a thing of the past. In this day and age, we want to see casinos which can be played on your mobile phones. You’ll want to be able to play in your web browser. The last thing you want to do is download software, as that limits you to playing from your computer.
- Service and Support: Top US casinos will offer around the clock support, via a variety of methods. These can include live chat, e-mail and telephone, and the latter shouldn’t cost you a dime.
- Great Games: Why play at a casino with software from just one provider? Many top US casinos can offer games from several. This increases not only the number of games you can play but also the variety of those games. With several top developers offering titles, you can choose from many table, card, instant win, live dealer, video poker, and online slot games.
Yours Questions Answered: Our FAQs on US Online Casino Gambling
If you still have questions and queries, perhaps our FAQ guide can help straighten things out?
- How do I pick the best US online casino?
As detailed above, there are specific criteria you’re going to want to look for. Your chosen casino should be well-licensed, safe, receive favourable reviews, have many games (ideally from different providers), offer fair terms and conditions on bonuses, and not shaft players over withdrawal fees and transaction times. It sounds like we’re asking for a lot, but there are many top US casinos which fit the bill.
- Is it illegal for me to play at an online casino in the USA?
Yes and no. If you’re living in a state where gambling is regulated and legal, then playing at one of those state-licensed sites is fine. If you’re playing at an offshore casino, you’re technically breaking the law. However, there are no punishments for US citizens who do so as per USA Gambling Laws.
- How old do I have to be to gamble in the USA?
This varies from state to state and depends on what you’re playing. In some states, it is 18 to play in land-based casinos and join lotteries. In others, the legal gambling age is 21. In most online casinos, the age is set to 21.
- Can I trust offshore casinos?
That depends on the casino you choose. Offshore casinos which are well-licensed and regulated can be trusted. However, any online casino which has no license, or cannot provide verification and proof of that license should be avoided at all costs. These are typically known as rogue casinos.
- What deposit/withdrawal methods can I use at US casinos?
The banking options you have open to you at US casinos will vary from site to site. Most offer credit and debit card options, prepaid cards, and gifts. Others may also accept bank transfers, e-wallet options and cryptocurrencies. Withdrawals are usually processed via wire transfers or cheques.
- Can I claim bonuses at US casinos?
Yes. Most US casinos accept bonuses. The ones you can find at legal, state-licensed casinos may be a touch smaller in value than those found at offshore sites, as they are better regulated. However, always read the exact terms and conditions of any casino’s bonus before you decide to claim it.
Read more about more country’s laws in Global Gambling Insights.
