The law system in the United States of America is something you should be aware of, especially because of how complicated it is. Most people consider that if Las Vegas is popular for its gambling environment, every state fits the same description.
Unfortunately, this is not the case, and each state prefers to adopt its own set of gambling laws, making it very difficult for tourists or travel gamblers to understand where, how, and when gambling is allowed.
To make the situation clear and provide a transparent breakdown of the gambling law system, we will take a look at how the US handles this industry in 2024. Maybe you can find some great value in our expertise and use these insights to improve your gambling experience.
Understanding The Gambling Law Situation In The US
Before we dive into complicated details regarding how the United States ended up having such a complicated system of laws for the casino industry, even if they are globally known for it, as a gambler, you should be prepared for it.
Why is it so important to do your own research? Because each American state has a different set of laws based on how they regulate gambling, online gambling, and casinos in general. Only a five-hour road trip from Oklahoma to Texas would force you to be careful where you gamble since, in Texas, you are only allowed to gamble in Native American casinos or slot machines.
Therefore, it is vital to check how gambling is regulated in the state you are going to travel to before you arrive and start placing your bets, especially if you are more inclined to use online casinos as the main providers.
Why Is Online Gambling So Complicated In The US?
If you are not aware of the current online gambling situation in the US, in 2024, only 7 states legally allow their citizens to access online betting platforms.
If you are a citizen of New Jersey, Delaware, Connecticut, Pennsylvania, Michigan, West Virginia, and Rhode Island, you will be able to enjoy most forms of gambling, including online.
Q: Considering how popular casinos are in the US, why is online gambling so restricted?
A: This happened because of a Federal Regulation from 2006, when Congress passed the UIGEA Act, in a poor attempt to stop online gambling from getting too much traction.
The Consequences of UIGEA
The problem with this regulation is that, surprisingly, it does not completely forbid online gambling. Thanks to it, it is now illegal for casinos to accept and process payments in connection to unlawful internet gambling. It is kind of an absurd law, since there are absolutely no active regulations that present online gambling as being illegal.
What is happening? Banking providers and financial creditors have to block any transaction related to gambling. The penalties can lead to imprisonment, fines, and asset forfeiture.
The most important aspect regarding this regulation is that the UIGEA only covers the operations of all the financial institutions, forcing each state to come up with its own legal regulations for gambling.
This translates to some states legalizing online gambling and some operators willing to expand their operations to foreign European and Asian markets.
Technically, online gambling is not illegal. Only accepting and processing gambling payments is.
US Sports Betting Laws
There are multiple discussions online regarding how players can enjoy their sports betting. The majority of betting enthusiasts still believe that placing bets on sporting events is an illegal thing to do.
Why does everyone think that? Because of the repercussions the PASPA federal regulation had on the population. The Professional and Amateur Sports Protection Act prohibited the legalization of sports betting, with only one exception: Nevada.
So, outside Nevada, you would have absolutely nowhere to go and enjoy an authentic sports betting session. So, if anyone thinks that sports betting should be illegal in most states, it is completely understandable.
However, since 2018, when the Supreme Court struck down this regulation, marking it as unconstitutional, every state has had the power to decide if sports betting will remain illegal or not.
The result? Sports betting is now permitted in 40 out of the total 50 states. Therefore, if you wish to place some bets on sports events, the chance for this action to be legal is pretty high in most states at present.
Recent Online Gambling Facts And Regulations
We cannot ignore the fact that with all the regulations and questionable regulatory background, the iGaming niche is skyrocketing. Based on the reports from Statista, the online gambling total revenue will reach more than US$35 billion by 2029.
So, we can expect to see way more West Virginia online casinos coming to light, along with New Jersey online platforms, Delaware casinos and more providers from newly-legalized states. A bigger surprise would be to see how other states begin legalizing online gambling individually. We should expect to see Kentucky and New York adopting new regulations since their gambling market potential is so high.
An obvious sign of the US trying to cover more ground in terms of casino market expansion is Hard Rock Digital’s attempt to buy the US B2C assets of 888 Holdings. 888 had an impressive total revenue of $2.16 billion in 2023.
Summary
People and betting enthusiasts are now free to enjoy sports betting now that more than 40 states have legalized it.
Online gambling slowly becomes a trend, with more and more states trying to come up with new laws encouraging its expansion.
The revenue will skyrocket thanks to more gamblers joining online casino platforms, which will also lead to increased media advertising and mobile gambling.
Stay tuned for more because the US online gambling market is still making its first steps.