2 days ago  PALM BEACH, Fla., Oct. 1, 2021 /PRNewswire/ - Legal online casino gambling continues to boom in the US. The three top online casino markets in the US have generated more than $1.5 billion in. Legal online casinos for real money are growing more popular in the United States every single year. Unfortunately, this country has a large and complex set of laws toward the internet casino industry. This guide only list online casinos approved in the U.S. That have been authorized by one or more U.S. Note: Delaware became the first state to legalize online gambling on June 2012.New Jersey became the third state to legalize online gambling while Nevada became the first state to legalize poker.

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As discussed in a previous article on the legality of playing blackjack online, the gambling industry in America is one of the most structured and developed gambling environments in the world. It is surprising then, that out of all countries in the world, the US probably has the most confusing situation when it comes to online casinos.

The majority of this confusion stems from the fact that online gambling is partly regulated by federal laws and partly by individual states. Moreover, since each state approaches the subject in a different manner, the average US player is left baffled when trying to decide whether using online casinos is legal in their state.

Current Federal US Laws That Regulate Online Casinos

Here’s a statement no one was expecting — no federal law in the US says that online gambling is illegal. However, it also doesn’t say that it is legal, which makes the market a gray area. US citizens are allowed to place wagers online, but only if the website isn’t based in the US.

The US federal law explicitly prohibits banks — or any other financial institution — to knowingly process transactions between a known web-based gambling business and US-based customers. In essence, it is illegal for your bank to handle a withdrawal or deposit to or from your casino account. That was the goal of the much-grumbled-about UIGEA (Unlawful Internet Gambling Enforcement Act).

You should notice, however, that it isn’t a crime for a US-based player to make or request a transaction — it’s just illegal for the bank to process them.

When it comes to lawmaking, the Tenth Amendment of the US Constitution states that anything that doesn’t have a specifically granted Federal purview and jurisdiction is up to the states. Thus, the Federal Government has not taken any stance related to gambling taking place within individual states — it up to individual states to do that.

The only two areas that the Federal Government regulates are:

• Interstate Commerce

The consequences of the first were already explained. The latter resulted in allowing states such as New Jersey to have online casinos, but only if they are being offered to US citizens physically located within New Jersey’s boundaries.

Casino Laws by State

Current States’ Laws That Regulate Online Casinos

If federal law was all that US players had to consider, the legality of web gambling would be a lot easier to talk about. Unfortunately for US-based gamblers, US state law is sometimes more restrictive than federal law.

So how strict are US state laws on internet gambling? Some US states have laws that explicitly prohibit all forms of online gambling.

Those are:

• Washington
• Wisconsin
• Illinois
• Montana
• Oregon
• Louisiana
• Utah
• Hawaii

State law prohibits the residents of these states from placing any kind of bet over the internet, regardless of federal regulation. Other states are less strict but are still restrictive — in South Dakota, for example, anyone in “the gambling business” is not allowed to place online bets, which is a really quirky law if you think about it.

Long story short, some US players have to walk a thin line if they want to play in an online casino while remaining within the confines of the law. Thankfully, the US rarely prosecutes online gamblers. We only found two instances where an online gambler broke a law, and both come from politically conservative states.

States in Which Online Casinos Are Legal

Thankfully, several states are more liberal toward online gambling and allow online casinos to operate in their area.

New Jersey

The state of New Jersey doesn’t prohibit online casinos and online poker. It is currently the biggest market for regulated online gambling in the US. Over a dozen licensed and legal online casino websites and poker rooms compete for their place in the sun in a market that is worth over $255 million per year.

Pennsylvania

In PA, online casinos were launched in July 2019 and online poker in November 2019. Gamblers have the option to bet in person or online via mobile app or website. Many Pennsylvanian major land-based casinos have created their online casino versions too.

Delaware

In Delaware, online casinos and online poker were launched at the same time — in November 2013. Although the First State seems like a strange location for amazing web-based gambling, that’s exactly what it is.

Michigan

As of December 20, 2019, online casinos and online poker are legal in the state of Michigan. However, operators are limited to a single online skin, and multi-state games aren’t permitted. Each of the 23 tribal and three commercial casinos can apply for licensing, but online casinos are still waiting to be legalized.

Nevada

Even though it is an unofficial birthplace of American gambling, the state of Nevada only allows online poker in designated poker rooms. Yes, they do have a legal WSOP website, but other online casino games are prohibited.

Offshore Casinos — A Handy Alternative

Even if you aren’t physically located in the states where online casinos are legal, there is still a way to find some quality entertainment online — by playing in offshore casinos.

Any US citizen can legally access these licensed offshore gaming platforms from most states. As we already explained, in Washington, Wisconsin, Montana, Illinois, Utah, Hawaii, Oregon, and Louisiana, all forms of online gambling are explicitly forbidden.

If you are wondering whether it is safe to play in casinos that aren’t licensed in the United States, the answer is yes. These casinos are legitimate and have clearly defined guidelines and rules that ensure a safe and fair gaming environment.

In addition, in order to offer casino games to gambling enthusiasts and be able to do business around the globe, offshore casinos need a license from reputable gambling jurisdictions, which makes them safe and trustworthy.

Moreover, since no federal law prevents US-based players from gambling in licensed offshore casinos, they can enjoy playing their favorite games on these platforms. Safe online casinos that accept US citizens possess valid certificates and licenses and are monitored by reputable governing bodies. They also have enticing welcome bonuses, a slew of interesting games, and a protected online gaming environment.

Future of US Laws That Regulate Online Casinos

The future is bright. Really bright. The biggest obstacle toward legalizing online casinos in the US was that the government was trying to stop the gradual loss of citizens’ interest in their official gambling zones — Las Vegas and Atlantic City. Since that has already happened, there is nothing that stands in the way of progressive legalization of online casinos across the nation.

Not to mention the fact that states without legal online casinos are starting to lose gambling aficionados who travel across state lines in order to play in states where gambling is legal. For instance, the legislative trend in New York is going toward expansion of gambling activities rather than contraction, since the state doesn’t want to lose its players to its neighbor New Jersey.

FAQ

You need to be at least 21. Even though the legal age limit for the online lottery is 18, you have to be 21 to play in an online casino. It is likely that lawmakers will decide to change the limit in the future.

In the states where they are legalized, online casinos must follow strict regulations and are therefore completely safe. However, you should exercise due diligence — always do thorough research before you decide to join a casino.

Yes, you can; many casinos offer these games. Lately, a lot of online casinos have begun introducing this section on their platforms. Live casino games are popular since they offer a genuine casino experience. Of course, not all online casinos sport a Live Casino section, so make sure you find those that do.

Just like all other industries today, the online casino industry is very competitive, meaning there is a myriad of casino games at your disposal. Any land-based casino game you can think of probably has an online version. What’s more, online casinos can often surprise you and you can run into some games you’ve never even heard of.

To cater to the needs of their players and thus remain competitive, the majority of online casinos offer a broad selection of payment methods. This results in easy and secure online payments. Of course, the processing time depends on the payment option you select.

Yes, you can. Online casinos, like other websites, understand the importance of mobile optimization and do everything in their power to meet the needs of their players. Since many players prefer to use their smartphones to play games, most casinos either have a fully optimized mobile site or a dedicated mobile app.

In the United States, both the Federal government and individual state governments are responsible for regulating gaming within their jurisdiction. The Federal government has designated some forms of gambling as prohibited within the US and has created laws that are non-negotiable in the regulation of such prohibited activities. On this subject, the Federal government may outlaw any form of gambling and states must abide by their law as Federal regulation will always trump state laws. It is important to any country’s gambling laws in order to stay within the country’s legal guidelines.

States, however, are permitted to maintain their own regulations and prohibitions on acceptable forms of gambling as dictated by Federal regulations. So long as state laws align and do not challenge or disobey Federal gaming laws they are free to control, oversee, and manage to gamble within their state. Usually, states create and employ gaming control boards or special gaming commissions to supervise gambling activities within their state borders. State laws are subject to their specific state and do not have jurisdiction or power to control laws in other states. Therefore, gambling laws can differ greatly between states.

Active Federal Laws And Regulations In The United States That Affect Online Gambling

The United States maintains several significant federal gambling laws that greatly affect how gambling is regulated and permitted throughout the nation. Each law provides its own in-depth explanation, reasoning, and history behind its creation and implementation. On this page we summarize the laws, however, to gain a comprehensive understanding of the background of each federal law simply follow the highlighted links to resource guide that provides a greater depth of explanation.

Federal Wire Act – To combat prolific organized crime surrounding illegal bookmaking, then President John F. Kennedy enacted this law which effectively outlawed betting businesses from using phones to accept, place, or transmit interstate or foreign wagers on sports. At the time, this federal law greatly minimized domestic mafia bookmaking operations. The law has recently been interpreted by the US Department of Justice as effectively prohibiting U.S. based online sportsbooks from operating within the nation’s borders. Therefore it is a crime to operate an online sportsbook on US soil. The law does not prohibit USA residents from engaging in online sports betting at a legitimately licensed and regulated sportsbook that is legally operating outside of the United States.

DOJ Formal Opinion – In 2011, the DOJ and the Office of Legal Counsel released a memo that explained their formal interpretation of the Federal Wire Act that countered against the previous position the Criminal Division of the DOJ had taken. The memo stated that their prohibition on US-based Internet gaming only applied to online sports wagering. This clarification effectively allowed U.S. states to determine their destiny regarding online gambling as long as it doesn’t entail betting on sports. Therefore online casinos and poker sites are now legally permissible should a state decide to legalize these forms of betting entertainment.

UIGEA – This federal law is specifically aimed at online gaming operators and online gaming payment processors to curb illegal financial crimes, fraud, and money laundering through internet gaming activities. Financial institutions were thus barred from permitting direct transactions to online gaming service providers and given specific regulations on how they may process such transactions. In essence, the law provides regulatory oversight regarding how the online gambling transactions of USA residents are processed. The law does not make online gambling illegal.

PASPA – Once acted as the governing law over the prohibition of brick and mortar sports wagering throughout the US, with the exception of four exempted states. These four states had already implemented some type of active sports wagering or had pending sports legislation in place by a specified deadline and therefore were deemed exempt from the restrictions enacted by PASPA. The exemption was also offered to New Jersey due to their thriving Atlantic City gambling entertainment market, however, the state failed to take advantage of this option and allowed the deadline to pass. However, in 2018 SCOTUS reviewed PASPA and on May 14th ruled it unconstitutional and void. This law is no longer effctive in the land of the free.

RAWA – A preemptive bill yet decided upon intends to rewrite the Federal Wire Act of 1961 to extend prohibitions to include all forms of online gaming. If passed, this law would violently impact the current and future USA online gambling market as it does not include carve-outs for existing state-regulated online gambling platforms such as those initiated in Delaware, New Jersey, and Nevada – effectively making all online gaming in the USA illegal immediately.

State Gambling Laws

Individual states maintain the authority to allow or prohibit any form of gambling within their borders that are not expressly prohibited by US federal gambling laws. Due to the differing climate of states and their individual positions regarding legal forms of gambling entertainment, it is crucial to provide up to date information on what each US state permits and forbids in order to deliver the most accurate information for our readers. Therefore, we have specialized state focused pages to deliver the most current information on gaming laws and permissible gaming entertainment within their borders. Not only that, we provide here a state-specific gambling entertainment bill tracker to keep Americans updated on upcoming legal forms of betting entertainment in their state and inform them of newly enacted or retracted gambling laws.

Who Regulates Gambling in The United States?

At the federal level, there are multiple agencies that have a say in the regulation of U.S.A. gambling, these figures include the Department of Justice, the Federal Bureau of Investigation, the US Supreme Court, the House of Representatives, Congress, and even the President. All of whom communicate with one another and utilize the US constitution and precedent laws to determine the eligibility and legality of pending gambling legislation and regulations. At the state level, senators and congressmen in government positions lobby, direct, and discuss possible gaming legislation to either generate, permit, and regulate various legal forms of gaming entertainment in their state.

However, state governments often create sanctioned oversight boards such as Gaming Control Boards or Gaming Commissions to authorize, supervise and regulate legalized gambling activities within their state. Certain states in the USA may only have limited forms of legal gaming and therefore consolidate administrative power to existing commissions such as Lottery Commissions that are then tasked to regulate lotteries and limited forms of gambling such as charitable gaming in this case.

Forms of Legal Gambling in The United States

There are a variety of legal forms of gambling within the United States, however, these permitted venues are not uniform across state lines and players interested in engaging in these activities should check with local state laws to ensure lawful participation. As identified by the American Gaming Association the following forms of gaming entertainment are legal in the US: brick and mortar commercial casinos, tribal-run casinos, public and private poker rooms, bingo halls, various charitable gambling venues offering games such as raffles, pull-tabs, paddlewheel, punchboards, and casino nights, table games, on-track and off-track pari-mutuel wagering on horse racing, exotic wagering, bookmaking, daily fantasy sports tournaments, skill-based tournaments such as billiards, darts, and fishing, and lotteries.

Forms of Legal Online Gambling in The United States

Within the U.S.A. there are legal forms of online gambling that citizens may participate in, however again, the permissibility of online wagering is not equal across state borders as individual states hold the authority to allow or prohibit various types of online gambling for their state residents. With this being said, a number of US states have permitted the legalization of online gaming platforms through the use of iGaming services providing online casino, poker and lottery initiatives that are thriving. As of this writing, Delaware, New Jersey, and Nevada all have state-based online poker available, and both Delaware and New Jersey also offer state-regulated online casino gambling as well.

At this moment in time, individual states are not eligible to provide state-regulated sports betting online due to current federal legislation blocking such access. Regardless, nearly all USA residents may participate in legally licensed and regulated offshore online sports betting sites that remain a legal online avenue for USA players.

What Is The Legal U.S. Gambling Age?

Generally, gambling is legally accessible to individuals above the age of eighteen. However, every state has its own laws on the minimum legal age for gambling within their borders and often it can vary by game type. Normally, lottery gambling, charitable gambling, parimutuel wagering and bingo are available to young adults who are at least eighteen. Often times poker and casino gambling impose a requirement for individuals to be at least twenty-one in order to participate. These norms vary by state.

What Happens If I Violate A US Gambling Law?

Nearly all states criminalize gambling in some form and contain various penalties and punishments set for engaging in illegal forms of gambling. Violations of any US gambling laws, whether federal or state, can lead to imprisonment, hefty fines, and/or probation. Each violation case is different, and penalties vastly change based on the state or jurisdiction the violation took place in and circumstance. Imprisonment can vary based on a misdemeanor or felony offense in which case can result in up to a year in county or local jail for misdemeanors and a year or more in prison for felony offenses.

Criminal cases involving organized crime and professional gambling can result in up to a 10-year sentence in federal prison or more. Fines can vary on a state by state basis, generally, misdemeanor fines can range from $100 up to a $1,000 or more. Felony fees are relatively handled the same way and they can reach up to $20,000 or more. Fines can be separate punishments or in addition to jail or prison sentences. Probation sentences often ask offenders to serve 12 or more months either in a gambling addiction treatment facility or refraining from participating in gambling activities alongside with judge recommendations for community service or similar.

Is Illegal Gambling a Problem in the United States?

In the past, illegal gambling rings were run by threatening mobster figures who would often commit violent crimes against individuals and families of persons with unpaid debts. Today, the seedy dark figures of the past are no longer so prevalent but that is not to say that there are no underground gambling activities taking place in the US. In fact, several cases of violent threats and acts occur to this day due to gamblers placing wagers and falling into debt with the wrong type of individuals.

Wild Casino Slots

Illegal gaming remains a huge black-market business in the U.S. and every day individuals can place illicit wagers through bookies, backdoor casinos, and illegal online portals while operators, owners, and bookmakers take their cut of this lucrative business. No one is sure how much money is exactly wagered illegally but some estimate that the numbers are close to $88 billion a year. Other than the issue of states being unable to tax this money and legal venues losing money to illegal platforms, the greater issue of possible gambling addiction remains the most threating as addiction can lead to serious problems concerning an individual’s financial welfare, home-life, and possible crimes committed.

Which States Consider Gambling Illegal?

Gambling is wholeheartedly illegal in Utah and Hawaii, as they are well-known for their gaming prohibitions and strict anti-gambling laws. These two states have often reasoned that gambling would destroy their religious values, moral family structures, and harm their communities. Certain states that do not oppose gambling on moral grounds still limit gaming within their borders and only provide minimal gaming entertainment access; a move that often forces interested bettors into illegal gambling activities. One state in particular that engages in this type of limitations is Alaska, however, other states employ similar limitation tactics. These types of restrictions have driven the legal online gambling industry to gain momentum.

How Do I Know If I’m Gambling At An Illegal Destination?

Often a red flag for any gambler is the location of the said gaming site. Look around: is the setting of the business in a rundown location hidden from legal oversight? Do you have to enter through a special backdoor? Is the lighting poor, hygiene of the venue dissatisfactory, and do the patrons and staff give off a suspicious feeling? The one sure fire way to determine the legitimacy of any type of gambling business either offline or online is through their credentials. Legally sanctioned gambling businesses have no problem being transparent regarding their licensing, regulatory oversight and compliance certifications.

All licensing credentials should reflect the name of the agency or gaming commission that issues licensing for any given jurisdiction, and can easily be verified through the relevant regulatory body. If you find yourself in contact with a gambling business of any kind that acts defensive or is elusive when you attempt to question their credentials, you can speculate that their legitimacy is questionable. Illegitimate gambling businesses, which in turn are illegally operating, are usually focused on predatory acts, such as theft and fraud. We strongly caution against sharing any information with any gambling business that you are not sure is operating legally within the industry.

Who Do I Contact About Illegal Gambling Operations?

Once you have come in contact with an illegal gambling operation that attempted to entice you to wager on or participate in illicit activities, contact a lawyer, report the illegal operation at ic3.org, and follow up with filing a report with the FBI, local law enforcement, the American Gaming Associations Illegal Gambling Advisory Board, and/or Internal Revenue Criminal Investigation Department.

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