The State of Gambling in the US

Gambling in the US is regulated by the federal and state laws. Individual states have the authority to regulate gambling within their territories. Some states like Pennsylvania and New Jersey have been touted as shining examples in legalizing online gambling while others are moving to completely ban the practice. Understanding the gambling laws for each state might be a little daunting especially if you travel interstate. Gambling in the USA is generally controlled under the following pieces of legislation:

The Interstate Wire Act

According to this legislation that came into effect in 1961, “using a wire communication facility” to place bets was made illegal. The rules were understood by many, including the Department of Justice to include online betting. In 2011, the Interstate Wire Act was clarified by the DoJ thus allowing some form of online gambling like casino games and online poker players. Sports gamblers were however prohibited to place any wagers “by wire”.

The Professional & Amateur Sports Protection Act (PASPA)

When it was passed in 1992, this law made all forms of nationwide sports betting illegal, including fantasy sports. The states of Delaware, Nevada, Oregon and Montana were exempt from this law because they had an established sports betting scheme before PASPA was enacted. Players in the industry felt that this law was harsh and there were arguments about its unconstitutionality. There was a collective sigh of relief when the legislation was repealed on May 14, 2018 by the U.S. Supreme Court.

The Unlawful Internet Gambling Enforcement Act (UIGEA)

In 2006, the UIGEA was passed by the U.S. Congress. It was understood to be the answer to other unclear laws surrounding gambling in the US. Under the UIGEA, banks in the US could not process transactions for any online betting sites. The result was an immediate withdrawal of online betting sites from the US market. Some went offshore and could still allow US customers.

The global gambling industry has grown tremendously despite a tough operating landscape. Statistics indicate that the global gambling market size attained a value of over $440 billion in the year 2018. In 2019, the online gambling market size in the US was close to $59 billion and is projected to almost double in the years to come.

Online gambling in the US has been an option for many but you need to know the states that allow different forms of gambling.

US States and their Gambling Laws

Nevada

Las Vegas, Nevada is the ultimate destination for most gamblers across the world, and the reasons are compelling. There are at least 215 land-based casinos housing over 140000 machines in Las Vegas alone. The city is the crème de la crème of gambling. Players can play slot games in any of the top casinos like the MGM Grand Hotel and Casino, Caesar’s Palace, Bellagio or the Venetian.

You can also place online sports bets on sites like GT Bets, William Hill, BetUS or play online poker games at WSOP.com.

Pennsylvania

Regarded as one of the progressive states on matters gambling, Pennsylvania allows online sports betting, online poker and online casinos. Bettors can use sites like BetRivers, PlaySugarHouse and Parx to place their bets. For those who wish a more detailed experience, retail sportsbooks in the state include Unibet at Mohegun Sun Pocono and FOX Bet at Mount Airy Casino.

PokerStars continues to be the leading online platform for poker players in Pennsylvania. Online casinos like Unibet offer players from the Keystone State the chance to play slots.

New Jersey

New Jersey is one of the most lucrative markets for regulated online gambling in the US. Online sports betting, online poker and online casinos are all legal in New Jersey. Online poker sites like 888 Poker, WSOP, PokerStars and Borgata Poker now offer games like Omaha and Texas Hold’em for NJ residents.

Online casinos in NJ must have a land-based player. Some of these include Virgin Casino and Tropicana Online. Atlantic City in New Jersey is perhaps the most famous address, hosting several land-based casinos like Ocean Resorts, Hard Rock and Golden Nugget. Online sports betting sites like Bet365, Fox Bet and Unibet are available for bettors.

Delaware

After PASPA was repealed, Delaware seized the moment and was the first state to launch sports betting. Retail sports betting is available at any of the three casinos, namely Harrington Raceway & Casino, Delaware Park Casino and Dover Downs Hotel & Casino. Customers can find online casinos and poker at the sites of these three establishments.

Michigan

Michigan jumped into the bandwagon and legalized online gambling in 2019. Progress is steady and the first retail sportsbook went live in 2020. Online platforms are expected to join the fray soon. Lotteries are also allowed in the state of Michigan.

West Virginia

The West Virginia Lottery Interactive Wagering Act paved way for legal gambling to thrive in the state. Existing land-based casinos like the Mardi Gras Casino, Hollywood Casino Charles Town and the Wheeling Island Hotel-Casino-Racetrack were allowed to pursue plans for online poker and casinos.

Steady Progress

Post PASPA, more states have shown willingness to commence gambling in their jurisdictions. States such as Washington, Illinois, Montana, Colorado, Rhode Island and Oregon have all recently allowed online sports betting only. It is expected that online casinos and online poker will gradually be available in these states. Others like Kansas, Maine, Florida and Maryland are considering making sports betting legal.

Online lotteries are also allowed in some states like Michigan, Georgia and Kentucky. Some popular lottery sites in the US include Lotto, Powerball, Instant Keno, Fantasy 5 and Mega Millions. Players can participate in daily draws, jackpots and instant games in a bid to win.

Hawaii and Utah however do not allow any form of gambling.

As more US states make progress in gambling regulation, more needs to be done by all stakeholders. The potential gains in the form of taxes and job creation are immense. The market is also ripe and can be tapped benefiting everyone.