Gambling is regulated at the federal, state or tribal, and local levels in America. States are the primary regulators of online gambling in America, though, in the case of multistate matters, the federal government plays a bigger role. On the surface, the only form of online gambling being restricted by the federal government in US online casinos is sports betting.
Some states allow their players full mobile betting encompassing live games, video slots, sportsbook, and even lotteries. Oregon is still taking the safer route in its online gambling experiment, offering only lottery. In other states, the bettor must be physically available to initiate a bet. Select states outrightly ban online gambling and in-person sports betting.
The Wire Act of 1961’s Role in Modern Day Gambling
The 1961 Wire Act was initially used with anti-racketeering laws to suppress wire transactions deemed illegal.
A popular federal government statute banning interstate online gambling in America is the Wire Act of 1961, which still applies to sports betting.
It says that:
“Whoever is in the business of betting or abetting a bet with a wire transmission in interstate or foreign transactions or for wire transactions that credit an individual with money from bets, wagers, or from abetting bets, shall be penalized with a fee of $10,000 or less, imprisoned for a maximum of two years, or both.”
Ripples From the 2006 UIGEA is Still Felt Today
The 2006 UIGEA stands for Unlawful Internet Gambling Enforcement Act and it prohibits illegal gambling in the U.S. Banks and payment methods (amongst others) are required to identify and block illegal financial transactions. Despite the statute being around for more than a decade, the UIGEA doesn’t have that many applications.
The UIGEA considers gambling transactions illegal in some states while it doesn’t in others. State gambling laws however still have a huge influence on the UIGEA.
The DOJ Gives States More Authority on Their Gambling Laws
The Department of Justice gave each state more authority in managing their online gambling laws in 2011. This opinion also decriminalized a few forms of online gambling including slots, bingo, and poker games. M
Many U.S States Already Accept Online Gambling
The US states where online gambling is accepted are Arizona, Connecticut, Colorado, Illinois, Indiana, Arkansas, Iowa, Louisiana, Michigan, New York, New Hampshire, Nevada, New Jersey, Oregon, Pennsylvania, Rhode Island, Tennessee, Washington, Wyoming, West Virginia, and Virginia.
States like Arizona, and Connecticut enjoy full mobile betting with multiple options. Other states like New Hampshire, Oregon, Rhode Island, and Washington D.C have limited mobile betting experiences in one way or the other. Current reports say that more states are interested in jumping onto the mobile gaming bandwagon. This includes Kansas, Maryland, and Ohio.
Some U.S States Still Aren’t Accepting Online Gambling
U.S States where online gambling isn’t accepted are Alabama, Alaska, California, Delaware, Wisconsin, Washington, Vermont, Utah, Texas, South Dakota, South Carolina, Oklahoma, North Dakota, North Carolina, New Mexico, Montana, Missouri, Mississippi, Minnesota, Massachusetts, Maine, Kentucky, Idaho, Hawaii, Georgia, and Florida. States like Delaware, Maryland, Mississippi, Montana, New Mexico, North Carolina, North Dakota, South Dakota, Washington, and Wisconsin only accept in-person sports betting.
Adoption of Newer Payment Methods by Online Casino Operators
The popular payment methods that have been adopted by online casino operators are bank cards and electronic wallets. However, to bypass the ban of U.S citizens, Some online casinos have started to take legal risks by adopting cryptocurrencies. The goal of these operators is reaching U.S states where online gambling is prohibited. Online casino operators are now adopting the use of BTC, ETH, and LTC for players who prefer anonymity and speed.
Cryptocurrency’s supposed anonymity that cryptocurrencies are known for is being undermined by Know-Your-Customer regulations required of every online casino. This is because of the government’s anti-money laundering policies.
Wrapping it Up
There are different state laws pertaining to online gambling, sweepstakes, fantasy sports, and skill gaming. However, online casinos laws in America are still going through a phase. For one, more states are becoming less restricting by the minute due to demand for mobile gambling.
In general, gambling in the U.S is legally restricted, with online gambling being either fully or partially restricted by the government.
This forces would-be to be on the alert for any change in state gambling laws that may favor or hamper their gambling activities and properties.
The online gambling revenue still remains relatively untapped in the U.S with many opportunities in the esports and trivia sectors. The call for increased legalization of online gambling remains monumental because the audience desires gambling on different entertainment forms including gaming.
