Internet Gambling Laws By State

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  1. What States Allow Internet Gambling
  2. Online Gambling Laws
  3. What States Are Legal For Online Gambling

The states of Washington and Maryland represent a disturbing recent trend – a new movement to ban online gambling in light of confusing evidence about its popularity and impact. Gambling in the United States is a very fluid landscape with more than its share of ebb and flow. The parameters change regularly, and now that state-regulated online gambling is allowed, everyone involved is taking a hard look at the laws and policies governing the various elements of the industry. Those opposed to gambling attempt to use the laws to support their position, while those who support responsible gambling work tenaciously to expand our options within compliance of existing US laws. The following Internet gaming sites are approved to conduct continuous 24 hour Internet gaming operations. Internet gaming site approvals will be issued on a rolling basis. Best online gambling sites offer people numerous opportunities to earn both fame and money. Legality of online gambling. Majority of countries restrict betting via Internet, but it is allowed in several states in US. Government is very strict about rules of regulations for those providers who offer people online gambling. Unlawful Internet Gambling Enforcement Act – This bit of legislation prohibits gambling operators from accepting money from residents in locations in which gambling is illegal under state or federal law. However, the offshore gambling.

Gambling in the United States is a very fluid landscape with more than its share of ebb and flow. The parameters change regularly, and now that state-regulated online gambling is allowed, everyone involved is taking a hard look at the laws and policies governing the various elements of the industry.

Those opposed to gambling attempt to use the laws to support their position, while those who support responsible gambling work tenaciously to expand our options within compliance of existing US laws. The complexity of the legal status of gambling in the US in all its various forms can make it difficult to follow and understand specifically what is and is not considered legal betting.

Our objective in adding this information to our LegalBettingOnline.com resource guide is to provide valuable data that empowers players to make highly informed decisions regarding what types of gambling entertainment effectively meet their needs and preferences through legally sanctioned betting opportunities. We are not attorneys and are providing this guide for informational purposes only**.

Unlawful Internet Gambling Enforcement Act - UIGEA

This is one of the most misunderstood US gambling laws and is surrounded by layers of misinformation and misconception. Many players believe that this law prohibits USA residents from participating in online gambling. This is not true. In fact, the UIGEA law does not address player activity at all nor place any type of restrictions on players themselves. Instead, this law targets banks and financial institutions that knowingly process any transactions related to online gambling.

Our page explaining the Unlawful Internet Gambling Enforcement Act will provide an accurate and understandable explanation of what this law was created for, what specific aspects of online gambling it governs, and how its implementation affects players in the US.

Professional And Amateur Sports Protection Act – PASPA

Paspa (also known as the Bradley Act) was directed specifically at the sports betting industry and provided regulation concerning US-based sportsbook gambling. It has been the center of controversy in the industry recently, bringing into question the law's range of power and presence. This law essentially makes US-based sports betting illegal in all but 4 states.

However, in May of 2018, through a lawsuit initiated by the state of New Jersey, SCOTUS ruled that PASPA was unconstitutional and the law was struck down. This has dramatically changed the US sports gambling market and has given power back to the states to determine their own will to allow or prohibit sportsbooks from operating within their borders.

Our page explaining the Professional and Amateur Sports Protection Act discusses the law's intentions, reach, and parameters, as well as how state opposition coupled with state-regulated gambling initiatives challenged the law head-on and won.

Of all of the US federal gambling laws, The Federal Wire Act one probably has the most interesting origins of them all. Who doesn't love a 'good guys vs the mob 'story? The Federal Wire Act is also one of the most debated pieces of gambling-related legislation and has sparked a great deal of controversy after the DOJ determined that the law's restrictions do include US-based online gambling. Since that time, the DOJ has issued two contradicting legal opinions in 2011 and 2019 respectively that have each redefined the application of the Wire Act and its associated prohibitions.

2011 DOJ Formal Legal Opinion on Interpretation of the Wire Act

Interestingly enough, the DOJ issued a formal legal opinion in 2011 concerning the reach of the Wire Act, indicating that the law only applies to sports gambling, and does not prohibit other forms of state-based online gambling. This literally opened the door to individual states having the authority to license and regulated domestic online casinos and poker rooms, among other forms of gambling, without violating the Wire Act. Learn more from our page dedicated to explaining the Federal Wire Act and how it impacts legal online sports betting for American players.

2019 DOJ Formal Legal Opinion Again Redefines the Reach of the Wire Act

The DOJ reversed their 2011 DOJ Opinion Memo on the Wire Act in 2019 to reflect a prohibition against all US-based interstate gambling. Casino, lottery, poker, sports betting, and information companies were given a 90 day period to meet new compliance standards or face violating Federal Law. This means servers, data, payment processors, etc. must be located individually within the state the business is operating gambling services in.

Internet Gambling Laws By State

The reversal on the DOJ's position on the Wire Act will not dramatically impact those states that have already begun licensing and regulating online gambling within their borders, but it will impact those states that have entered into interstate gambling compacts and already share player pools across state lines. We would not be surprised to see lawsuits against the decision from those states, gambling operators and the software and technology companies providing services in the industry.

In 2014, senators Lindsey Graham of SC and Jason Chaffetz of Utah reintroduced legislation to congress that would restore the wire act. If implemented, RAWA would essentially rewrite and extend the Federal Wire Act of 1961 to make all types of gambling illegal, even if it were already legal on the state level. Marco Rubio of Florida has also recently joined the party and supports RAWA.

What do these 3 senators have in common? They are thought to be in bed with Sheldon Adelson, a multi-billionaire gambling tycoon who operates brick and mortar casinos all over the world. Learn more by reading our page explaining RAWA - Restoration Of Americans Wire Act.

The Interstate Horse Racing Act of 1978, or IHRA, is the law that governs the horse betting industry’s off-track betting locations (OTBs) and interstate betting options in the US. This law, though enacted in 1978, also defines the rules and regulations of simulcast betting on an interstate basis, which was logically extended to domestic online betting with the advent of widespread Internet access in the late 1990s and 2000s.

Though the IHRA makes interstate horse betting legal at the federal level, individual states have the final say as to whether or not they wish to legalize horse racing or offer their residents access to interstate betting. To date, 41 out of 50 US states participate in interstate horseplaying under the auspices of the IHRA, with several other states considering legalizing the industry within their borders.

That said, the Interstate Horse Racing Act does not bar the use of overseas or international racebooks. US residents in most states (excepting WA and CT) can legally use offshore racebooks to bet on the ponies. Best of all, these books offer much greater access to international races, featuring tracks from the US, Canada, Mexico, England, Ireland, the Middle East, Japan, and Australia, among others.

The brick and mortar land-based and floating casinos and poker rooms that are found in various states through the US are all governed by state gambling laws. Each state determines its own laws concerning what type of casino, poker, pari-mutuel, bingo, lottery, and other gambling they will allow within their state borders.

Laws

US Federal gambling laws primarily target US-based online gambling and sports betting. The DOJ has determined that each state can also determine their own destiny concerning legal online poker and legal online casino gambling.

State

It depends on where you are placing your bets. There are no federal laws that prohibit US residents from participating at online casinos, poker sites, bingo sites and legal online sportsbooks that are licensed, regulated and located outside of the United States.

Internet Gambling Laws By State

If you restrict your online gambling to these types of legally sanctioned gambling sites, then you will not be breaking the law. We do recommend however that you consider expert input regarding which sites are approved by professionals as providing a safe, high quality and rewarding online gambling experience.

One of the key elements that we examine during our review process is the security profile of each website. We don't provide our approval for gambling websites that simply meet licensing requirements or the lowest industry standards.

We require that a sophisticated security profile is in place that is comparable to world-class financial institutions. We want to see advanced encryption technology, firewall, and antivirus protection and fraud prevention systems, equipped with a technically trained staff to monitor these systems. These are tall requirements, and only those brands which can meet them are considered for inclusion in our guide.

If you limit your gambling entertainment to websites approved by professionals, then you can be certain that the security and level of protection you are looking for is in place. This is a trait of those sites that are legally licensed and subject to genuine regulatory oversight. Those sites operating outside of legal parameters don't typically take the time to invest in this type of security.

Because the vast majority of all US friendly gambling sites are located offshore, they must be located in a jurisdiction that already offers legal online gambling. They must also be regulated by a governing body under strict oversight. We have a detailed article explaining what a gaming commission is and which jurisdictions are the most reputable in the industry.

Additional Gambling Laws By Country

**We do not hold legal degrees or training and provide this information based on personal experience and research, not as experts in interpreting the law. If you seek professional legal advice or services, we recommend you contact an attorney familiar with gambling laws.

Gambling Law: An Overview

Gambling, though widespread in the United States, is subject to legislation at both the state and federal level that bans it from certain areas, limits the means and types of gambling, and otherwise regulates the activity.

Congress has used its power under the Commerce Clause to regulate interstate gambling, international gambling, and relations between the United States and Native American territories. For example, it has passed laws prohibiting the unauthorized transportation of lottery tickets between states, outlawing sports betting with certain exceptions, and regulating the extent to which gambling may exist on Native American land.

Each state determines what kind of gambling it allows within its borders, where the gambling can be located, and who may gamble. Each state has enacted different laws pertaining to these topics. The states also have differing legal gambling ages, with some states requiring the same minimum age for all types of gambling, while for others, it depends on the activity. For example, in New Jersey, an 18-year-old can buy a lottery ticket or bet on a horse race, but cannot enter a casino until age 21. Presumably, the age 21 restriction is due to the sale of alcohol in that location.

A standard strategy for avoiding laws that prohibit, constrain, or aggressively tax gambling is to locate the activity just outside the jurisdiction that enforces them, in a more 'gambling friendly' legal environment. Gambling establishments often exist near state borders and on ships that cruise outside territorial waters. Gambling activity has also exploded in recent years in Native American territory. Internet-based gambling takes this strategy and extends it to a new level of penetration, for it threatens to bring gambling directly into homes and businesses in localities where a physical gambling establishment could not conduct the same activity.

What States Allow Internet Gambling

Internet Gambling

Federal Regulation

In the 1990s, when the World Wide Web was growing rapidly in popularity, online gambling appeared to represent an end-run around government control and prohibition. A site operator needed only to establish the business in a friendly offshore jurisdiction such as the Bahamas and begin taking bets. Anyone with access to a web browser could find the site and place wagers by credit card. Confronted with this blatant challenge to American policies, the Department of Justice and Congress explored the applicability of current law and the desirability of new regulation for online gambling.

In exploring whether an offshore Internet gambling business taking bets from Americans violated federal law, attention was focused on the Wire Act, 18 U.S.C. § 1084 (2000). The operator of a wagering business is at risk of being fined and imprisoned under the Wire Act if the operator knowingly uses a 'wire communication facility' to transmit information related to wagering on 'any sporting event or contest.' 18 U.S.C. § 1084(a). An exception exists if that act is legal in both the source and destination locations of the transmission. § 1084(b). The Wire Act’s definition of “wire communication facility” appears to embrace the nation's entire telecommunications infrastructure, and therefore probably applies to online gambling. See § 1081.

The Department of Justice maintains that, under the Wire Act, all Internet gambling by bettors in the United States is illegal. U.S. House of Representatives Committee on the Judiciary Hearing on Establishing Consistent Enforcement Policies in the Context of Online Wagers, 110th Cong., Nov. 14, 2007 (testimony of Catherine Hanaway, U.S. Attorney (E.D. Mo.), Dept. of Justice). The Fifth Circuit disagreed, ruling that the Wire Act applies only to sports betting, not other types of gambling. In re MasterCard Int’l Inc., 313 F.3d 257 (5th Cir. 2002).

In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, which made it illegal for wagering businesses to knowingly accept payment in connection with unlawful Internet gambling (though it does not itself make Internet gambling illegal). 109 Pub. L. 109-347, Title VIII (Oct. 13, 2006) (codified at 31 U.S.C. §§ 5301, 5361–67). It also authorizes the Federal Reserve System to create regulations that prohibit financial transaction providers (banks, credit card companies, etc.) from accepting those payments. See 31 U.S.C. § 5363(4). This Act, along with threats of prosecution under the Wire Act from the Department of Justice, has caused several Internet gambling businesses to withdraw from the U.S. market.

In response, House Representatives introduced multiple bills in 2007 to soften federal Internet gambling law. If passed, the Internet Gambling Regulation and Enforcement Act and the Internet Gambling Regulation and Tax Enforcement Act would license, regulate, and tax Internet gambling businesses rather than prohibit them from taking bets from the United States. Alternatively, the Skill Game Protection Act would clarify the Wire Act to exempt certain games such as poker and chess.

State Regulation

In addition to federal measures, some states have enacted legislation to prohibit some types of Internet gambling. In 2006, Washington State amended its Code to make knowingly transmitting or receiving gambling information over the Internet a felony. See Wash. Rev. Code § 9.46.240 (2006). Other states with similar prohibitions have made it a misdemeanor instead. See e.g., 720 ILCS 5/28-1 (2007).

States have not been particularly active in enforcing these laws, possibly due to a conflict with the dormant Commerce Clause doctrine. That doctrine theorizes that state law applying to commerce outside the state’s borders is unconstitutional because that power lies with federal, not state, government. In particular, federal preemption has obstructed states’ attempts to regulate gambling activity on Indian reservations within state borders. See Missouri ex rel. Nixon v. Coeur D’Alene Tribe, 164 F.3d 1102 (8th Cir. 1999). The federal Indian Gaming Regulatory Act, 25 U.S.C. § 29 (2000), governs gambling activity on Indian reservations, but the extent to which it and other federal gambling laws preempt state action in the Internet arena is uncertain.

menu of sources

Federal Material

U.S. Constitution and Federal Statutes

Internet Gambling Laws By State
  • U.S. Code: Title 15, Chapter 24: Transportation of Gambling Devices
  • U.S. Code: Title 15, Chapter 57, Interstate Horseracing
  • U.S. Code: Title 18, Chapter 50: Gambling
  • U.S. Code: Title 18, Chapter 61: Lotteries
  • 18 U.S.C. §1953 (Interstate Transportation of Wagering Paraphernalia Act)
  • 18 U.S.C. §1955 (Illegal Gambling Business Act of 1970)
  • 25 U.S.C. §§2701-2721 (Indian Gaming Regulatory Act)
  • U.S. Code: Title 28, Chapter 178: Professional and Amateur Sports Protection
  • Code of Federal Regulations: Title 25, Chapter 3: National Indian Gaming Commission, Department of the Interior
  • Proposed Internet Gambling Prohibition Act of 1997 (not passed)

Federal Judicial Decisions

  • Greater New Orleans Broadcasting Association, Inc. v. United States, 527 U.S. 173 (1999)
  • Ratzlaf v. United States, 510 U.S. 135 (1994)
  • Chickasaw Nation v. United States, 534 U.S. 84 (1999)

State Material

Other References

Online Gambling Laws

  • '14 Charged in Internet Betting' (Washington Post, March 5, 1998)
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