Online gambling is a huge buzz in the United States. The industry boasts a market share of more than 2.5 billion dollars in 2022 and contributes largely to the economy.
With many sites and enticing bonuses available, online gambling is a go-to relaxation for many Americans. With that said, it is subject to several regulations by the federal and state governments to ensure it is safe for Americans. This article provides a comprehensive guide to online gambling laws and the legal states one can play. Let’s get into it.
Legality in United States
Generally, gambling in the United States is legal in 48 states except Hawaii and Utah, but there are restrictions regarding online and interstate gambling as each state has its regulations. Here’s a closer look at some of the states
- Washington
Gambling laws in Washington are pretty complex. Washington State Gambling Commission is the agency that regulates gambling in the state.
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Online gambling in the state is currently not legal; hence, players can’t access Washington online casinos. Therefore, due to strict regulations, accessing top online casinos in Washington is still a dream for residents in the state because of the strict rules imposed.
- Delaware
Delaware is the first state to legalize all forms of online gambling. The legal age for online gambling is 21 in Delaware. Online casinos and online poker are the most common forms of online gambling in the state and are regulated by the Delaware Lottery.
On the flip side of these gambling-friendly policies, there are only three legal online gambling platforms in Delaware, thus limiting players.
- Nevada
Nevada is the gambling ‘capital’ of the United States and one of the most liberal regarding online gambling. There are no online casinos in the state, but online poker is very popular.
Also, the state has partnered with the states of New Jersey and Delaware for the Multi-State Internet Gaming Agreement (MSIGA), which allows players from these states to play against each other in multi-state poker sites.
- New Jersey
Online gambling is legal in New Jersey for people above 21 years old, according to the New Jersey Division of Gaming Enforcement (NJDGE). In addition, offshore casino sites are legal in New Jersey and accept players from the state.
Some of the games allowed include roulette, baccarat, blackjack, slots, and any variants of these games. Any winnings are subject to a 3% tax deduction and 5-8 % for winnings over 10,000 dollars.
- Michigan
Online gambling is legal in Michigan for citizens above the age of 21 years. This is inclusive of sportsbooks and online casinos.
Online gambling in the state is regulated by the Michigan Gaming Control Board (MGCB). The state has also created the Internet Gaming fund that MGCB uses to enforce Internet gaming while the rest goes into school aid.
- Connecticut
Online gambling is legal in Connecticut for citizens above 21 years old but is still in its infancy, with only a handful of mobile apps. Moreover, operators are prohibited from separating casino and sportsbook platforms.
The Connecticut Department Of Consumer Protection Gaming Division regulates gambling in the state.
The Wire Act
The Wire Act was enacted to fight crime in sports betting. It prohibits gambling companies from using interstate telephone facilities to transmit any wagers or information pertinent to gambling.
Though controversial in its interpretation, this Act cuts across all forms of betting and applies to all states. According to the Department Of Justice ( DOJ), breaking this law is punishable by two years in federal prison, a hefty fine, or both.
Illegal Gambling Business Act ( IGBA)
IGBA was enacted to curb illegal gambling businesses in the US. According to the law, an illegal business is one that involves five or more people who finance, own, or conduct the business for at least thirty days with a gross revenue of at least 2000 dollars within that period.
A violation of this law is regarded as a federal crime, and one would face hefty fines, confiscation of property, and up to five years in federal prison.
Unlawful Internet Gambling Enforcement Act (UIGEA)
UIGEA is a federal law prohibiting gambling companies from knowingly accepting credit, electronic money transfers, or any other payment option involving a financial institution to settle debts.
The Act also stipulates five designated gambling payment options issued by the Treasury and Federal Reserve Board. These payment systems include Automated Clearing House (ACH ), cards, checks, money transmitting businesses, and Wire transfers.
Violating this law may be punished with heavy fines, five years in federal prison, or both.
Conclusion
From the gambling laws discussed in this article, it goes without saying that they are meant to protect us. All in all, understanding these laws will help you make informed decisions when gambling online.
