The US provides a limited online gambling opportunity for residents. States that allow online gambling include Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Iowa, Kansas, Louisiana, Mississippi, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, Washington, and West Virginia. Some states have laws that restrict online gambling in certain circumstances. Moreover, some states only allow sports betting, and the online gambling industry in these states is limited.
Legality of online gambling in the US
Despite what you may think, there is no Federal law that prevents Americans from gambling online. However, there are state laws that prohibit online gambling. One example is the Wire Act, which prohibits gambling across state lines. The Supreme Court clarified this position recently in a ruling.
Some states have prohibited online gambling entirely. For example, residents of Illinois, Louisiana, and Montana cannot play online poker games. Additionally, residents of Washington and Oregon can’t place bets on sports through the internet. Some states have legalized online gambling, but some are more restrictive than others.
However, the gambling situation in the US continues to evolve. Although the situation is still very gray in many areas, there are some positive changes. Online operators have started to enter US markets, and the legality of online gambling is proving to be a competitive environment.
Legality of online sports betting
The legality of online sports betting has been an ongoing debate. While most states have passed legislation legalizing this activity, the US Supreme Court has yet to make a definitive ruling on the legality of sports betting online. Despite the potential tax revenue, online sports betting remains a grey area in many states.
Legality of online sports betting differs greatly by state. For example, New Jersey has attempted to legalize sports betting online for almost a decade. In 2010, it took its case to the US Supreme Court, which ruled that the issue is up for state-by-state debate. While some betting websites have decided to shut down US customers, there are many quality offshore sports betting operations that are still accepting bets and paying out winnings.
In addition to the New England states, a few other states have passed similar legislation. Those states include Connecticut, Wyoming, Louisiana, Iowa, Minnesota, and South Carolina. These states are also actively exploring ways to legalize sports betting online.
Legality of fantasy sports betting
The question of legality of fantasy sports betting is still under debate in the United States. A 2006 law called the Unlawful Internet Gambling Enforcement Act (UIGEA) prohibits gambling on the Internet, and it has some impact on fantasy sports betting. This act makes it illegal for an online gambling site to accept funds for illegal Internet gambling. By illegal Internet gambling, we mean knowingly transmitting a bet or wager through the Internet to a site that is located in another jurisdiction.
Although fantasy sports are not considered a “game of chance,” they are classified as a skill-based investment and are considered a form of online gambling. Therefore, the law does not prohibit online fantasy sports betting, but states may still ban them. However, there are some exceptions, such as the Nevada lottery, which has an exemption under the law. Other states may also have fantasy sports betting laws that make it legal.