Gambling is enjoyed by millions of players across the world. The thrill of winning a hand of poker has been documented as far back as the early 1600s when Miguel de Cervantes wrote Don Quixote. The advent of the internet in the 1980s made online gambling a recent addition to the family of gambling experiences.
There is no doubt that online casinos bring an additional dimension to gambling to complement what already exists in traditional casinos and sports bookmakers. But with this new dimension of gambling comes the need for new forms of regulation to protect the player, casino or bookmaker and the country in which both reside in. As with any industry that involves an exchange of money, there are always people looking for opportunities to exploit others.
Gaming laws have been introduced and amended over the years in order to regulate the gambling industry. In the US, gambling laws have been front-and-center since the passing of the Federal Wire Act in 1961. While this act was one of the first sports gambling laws in the US, there have since been many additional acts, repeals and amendments, especially with regard to online gaming law.
This shifting of the goalposts has led many Americans to wonder where legal online gaming is available, if at all. The simple answer is there are currently no federal gambling laws that make placing a bet online illegal. In fact, there are interstate gambling laws that make online gambling overtly legal. In 2019 alone, six states legalized sports betting.
That said, it is important to know what the current online gaming laws are. Each state has its own online gambling laws and at the end of the day you will want to be able to comfortably cash out your hard-earned winnings without worrying about the legality of doing so. Equally so, it is important to know that there are legal restrictions on starting your own casino, should you ever wish to.
This article will go through the history of US online gambling laws and make it clear which states allow online gaming.
A brief history of US online gambling laws
The US has tried to maintain high standards for its gaming industry. Many of the laws that have been put in place are there to prevent the industry from being exploited by illegal bookmakers who use wire transfers for money exchange.
The internet has created a whole new online gaming environment. If money is being exchanged through online games, laws will be needed to regulate the transaction in order to ensure the safety and security of both parties and their money.
Some of the existing laws which were put in place before the advent of the internet have been used in case law when it came to understanding and prosecuting the online gaming industry. As a result, some acts have been repealed and amended in accordance with the new online gaming laws we need today.
Here is a brief history of the main US gaming laws which impact legal online gambling.
Federal Wire Act 1961
The Federal Wire Act was passed in 196. In essence, the act prohibited interstate wire transfers of money for sporting bets or wagers. It was meant to deter illegal bookmakers. The act was passed long before the internet and online gambling came into existence. Decades later, many wonder if the act applies to online gambling as well with the result that the interpretation of the Wire Act has been the subject of a number of court cases.
In 2011, the US Justice Department published an opinion according to which the Wire Act only applied to sports betting. In 2018, the US Justice Department reversed that opinion to also include other forms of betting. This has subsequently been challenged and set aside, before being appealed.
Once the dust has finally settled, it is quite likely that the Wire Act will continue to influence the US online gaming industry in some way.
Professional and Amateur Sports Protection Act 1992
The Professional and Amateur Sports Protection Act (PASPA) was passed in 1992. The act prohibited sports betting nationwide with the exclusion of a few states – Delaware, Oregon, Montana and some areas in Nevada.
The legality of the act was challenged over a number of years with the result that, in 2018, the US Supreme Court ruled that PASPA conflicted with the Tenth Amendment and repealed the act.
Unlawful Internet Gambling Enforcement Act 2006
The Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in 2006. This act will perhaps have the biggest impact on the online poker industry in the US to date. For instance, it was used for the Black Friday raid of the online poker industry. The UIGEA excludes fantasy sports, so don’t delete your team just yet!
The UIGEA prohibits gambling businesses from accepting payments in relation to a bet or wager made online which is illegal under state or federal law. It did this by making it illegal for banks and credit card companies to process financial transactions from online gambling.
The term ‘accepting’ has become a source of maneuvering for online casinos and players. If you make a wager or bet, it is not strictly illegal. But if you accept payment, it is. This has led online casinos to use third-party payment processors for financial transactions as well as disguising their revenue as payment for valueless items such as golf balls.
The UIGEA came into public prominence on Friday 15 April 2011, otherwise known as Black Friday, when the US Justice Department and FBI seized major gambling site domains, including PokerStars, Full Tilt Poker and Absolute Poker. Along with their domains, eleven executives were indicted for violating the UIGEA, fraud and money laundering.
Black Friday made a significant impact on the online gaming community. Many American players withdrew their funds while others abandoned them for fear of being indicted. Some online gambling sites, including all listed on the London Stock Exchange, no longer accepted American players. Most online gambling sites subsequently changed their domain away from a .com address.
For some US players, this event brought about the stark realization that their casino provider was not ever going to pay them their money. With the casino being illegal, it was difficult to force their hand. For sites and players that operate in states in which online gambling is legal, there is no threat of indictment.
Although UIGEA has come under criticism over the years, it nonetheless created a benchmark for state laws. As a result, it is easier to determine the states in which online gambling is legal.
Online gambling laws by state
With the history of online gambling and sports betting laws in the US, it is easier to understand why it can be difficult to know your legal position as a player. The UIGEA set a standard with Black Friday but has since not followed through with the same vigor or clarity. As if that were not enough, The Wire Act is still being reversed and appealed, seemingly by each administration.
As a result, the best way for US citizens to know whether they will be breaking the law by gambling online is by knowing their state’s law on gambling. As there is no federal law prohibiting playing outright, one’s best bet is to consult the online gambling regulations for every state.
Gambling and sports betting laws according to state
Wondering which states allow online gambling and which don’t? As you already know, gambling laws vary from state to state and can be quite complex and confusing. There are many states in which gambling is legal and many more where it is in the process of being legalized. Some states have no bills stating that online gambling is either illegal or legal and as a consequence, don’t regulate it.
For sports betting, an increasing number of states are passing bills to legalize it. Some allow for online sports betting, while others only allow sports betting within a casino. It can be difficult to know where you stand without doing research, especially with some of the strange laws that some states have. We’re here to help with a list of states and a short summary of their gambling laws at the time of writing.
Alabama
Charitable, pari-mutuel and tribal gambling is legal in Alabama. However, commercial casinos, racetrack, sports betting and online gambling are not.
Alaska
There are no Alaska gambling laws that legalize online gambling, casino gambling or sports betting. They are all illegal, except for charitable forms of gambling such as bingo.
Arizona
In Arizona, charitable, pari-mutuel, lottery, sports betting and tribal gambling are all legal. Commercial casinos, racetrack and online gambling are not, except for specific social online casinos which are allowed to operate in the state.
Arkansas
Arkansas passed state laws in 2018 which legalized all gambling with a state license. However, this didn’t include online gambling. There are also no tribal casinos in Arkansas.
California
In California, you can legally enjoy all forms of gambling except for commercial casinos and sports betting.
Colorado
Despite it being generally considered illegal to gamble in Colorado, the state offers a wide variety of legal gambling options including the Colorado lottery, casino gaming in Central City, Black Hawk and Cripple Creek, sports betting at any authorized sportsbook apps or operators, horse racing, charity gambling and social gambling. Online gambling is still illegal.
Connecticut
It is legal to take part in charitable and lottery gambling and gambling at a tribal casino. Pari-mutuel, commercial casinos, racetrack, online gambling and sports betting are all illegal in this state.
Delaware
On the surface, all forms of gambling are legal in Delaware. However, there are no tribal casinos and dog racing betting and fantasy sports betting are illegal.
Florida
Florida allows all types of gambling except for commercial casinos and online gambling. Online sports betting was legal, but a number of issues are currently being resolved in court, which means that online sports bettors will have to wait until all the legal issues are sorted out.
Georgia
Virtually all forms of gambling are illegal in Georgia except for charitable gambling and lotteries.
Hawaii
All forms of gambling are illegal in Hawaii.
Idaho
In Idaho it is legal to take part in charitable, pari-mutuel, lottery and tribal gambling. All other forms of gambling are illegal.
Illinois
All forms of gambling, excluding online casino gambling, are legal in Illinois. However, there are also no tribal casinos in the state.
Indiana
All forms of gambling, excluding online casino gambling, are legal in Indiana.
Iowa
All forms of gambling are legal in Iowa, except for online casinos and online poker.
Kansas
Gamblers can legally take part in charitable, pari-mutuel, lottery and tribal gambling as well as sports betting. Commercial casinos as well as racetrack and online betting are illegal.
Kentucky
Gamblers can legally enjoy charity, pari-mutuel, lottery and racetrack betting in this state. All other forms of gambling are currently illegal and there are no tribal casinos in the state.
Louisiana
All forms of gambling are legal in Louisiana, except for online casino gambling.
Maine
Legalized gambling in Maine includes charitable, pari-mutuel, lottery, commercial and racetrack gambling as well as sports betting. Unfortunately for sports betting fans, there are currently no sports betting sites operating in the state. Tribal gambling and online gambling are illegal.
Maryland
All types of gambling are legal in Maryland with the exception of tribal casino and online casino gambling.
Massachusetts
Online casino gambling is illegal in Massachusetts. All other types of gambling are legal.
Michigan
All gambling in Michigan is illegal unless authorized by the state. Thankfully the state has authorized all forms of gambling with specific operators so you can find all your favorite gambling pastimes in this state.
Minnesota
Gamblers can enjoy all forms of betting in Minnesota except for commercial casino gambling, online casinos and sports betting.
Mississippi
In Mississippi you can enjoy legal charitable, lottery, commercial casino, tribal and sports betting gambling. The catch with online sports betting is that you must place the bet at a licensed casino, even if you are wagering online. However, horse racing, pari-mutuel and online casinos are illegal.
Missouri
If you’re looking to take part in legal gambling in Missouri, you can enjoy commercial casinos – although there are no brick-and-mortar casinos, only river boats – lotteries and charitable gambling. In theory, you could also enjoy pari-mutuel betting and betting on horse races, but there are no tracks in the state. All kinds of sports betting and online casinos are banned in the state.
Montana
By default, all forms of unauthorized gambling are illegal in Montana. However, the state has authorized charitable betting, pari-mutuel betting, lotteries, sports betting and tribal casinos.
Nebraska
In Nebraska, gamblers can legally enjoy charitable, pari-mutuel, lottery, sports, tribal and horse race betting. However, brick-and-mortar and online casinos are illegal.
Nevada
It may not come as a surprise that the state that is home to Las Vegas is gambling-friendly. Gamblers can legally enjoy all types of gambling with the sole exception of lotteries.
New Hampshire
In the state of New Hampshire, gamblers can legally take part in all forms of gambling except for gambling at commercial and tribal casinos.
New Jersey
New Jersey is one of the most gambling-friendly states, with all forms of gambling being legal. However, there are no tribal casinos.
New Mexico
In New Mexico, you can legally enjoy many types of gambling except for gambling at commercial and online casinos.
New York
All types of gambling are legal, with the exception of online casino gambling. There are many rumors that the laws regulating online casino gambling are set to change in 2023.
North Carolina
In this state, charity gambling, lotteries, tribal casino gambling and sports betting are all legal. Online gambling is currently illegal.
North Dakota
North Dakota has laws that make commercial casinos, online casinos and sports betting illegal. You can enjoy all other types of gambling, including gambling at tribal casinos.
Ohio
Online gambling is illegal according to Ohio gambling laws. All other types of gambling, including charitable, commercial, sports betting and more, can be enjoyed legally in this state.
Oklahoma
In Oklahoma you can legally enjoy all forms of gambling except for gambling at commercial and online casinos and sports betting.
Oregon
If you want to enjoy legal gambling in Oregon, you can enjoy charitable, pari-mutuel, lottery, tribal casino gambling as well as sports betting.
Pennsylvania
All types of gambling are legal in Pennsylvania. However, there are no tribal casinos.
Rhode Island
Gambling in Rhode Island is completely legal, with online casino gambling being the only exception. Rhode Island also doesn’t have any tribal casinos.
South Carolina
All gambling is illegal in South Carolina except for specific types of charity gambling (bingo and raffles) and the state lottery.
South Dakota
In South Dakota, you can enjoy all forms of gambling except for horse racing and online casino gambling.
Tennessee
All forms of gambling are illegal in Tennessee except for the lottery, horse racing and sports betting.
Texas
In Texas, the only legal sports betting activities are charitable, pari-mutuel and lottery gambling as well as tribal casinos.
Utah
In Utah, all forms of gambling are illegal.
Vermont
All forms of gambling are illegal in Vermont, except for charitable and lottery gambling.
Virginia
If you want to gamble in Virginia, you can enjoy all forms of gambling except for gambling at commercial, tribal and online casinos. However, Bristol, Danville, Norfolk and Portsmouth will soon have their own legal casinos for people to gamble at. These casinos will open in 2023 and 2024.
Washington
All forms of gambling are legal in Washington except for online gambling. Sports betting is also limited to tribal casinos, with only one sports betting app existing. This app is the Snoqualmie Casino sportsbook app and must be used on the premises.
West Virginia
All types of gambling are legal in West Virginia. However, there are no tribal casinos in the state.
Wisconsin
In Wisconsin, you can legally enjoy charitable, pari-mutuel and lottery gambling. You can also legally gamble at tribal casinos. Sports betting is also allowed, but only at one casino in the state.
Wyoming
If you’re planning on gambling in Wyoming, commercial and online casinos are illegal. All other forms of gambling are allowed.
Gambling within the law
As should be clear, gambling laws differ from state to state. Laws are constantly being reviewed, especially with regard to online casinos. When your state legalizes online gambling, make sure to use a US online casino that you can trust. And in the worst-case scenario, you could always try out gambling in space!
Enjoy great online gambling at Borgata Online
Now that you know which states allow online gambling and you want to play at an online casino in a state that allows it, it’s time to see what we have to offer at Borgata Online. Our online casino offers a wide range of gambling games, from online poker to slots to live dealer games and more! You can even enjoy online sports betting at Borgata Online!
Register at Borgata Online to enjoy all the thrilling gambling we have to offer.