Is Online Gambling Illegal In Us
The question and confusion regarding the legality of gambling in the United States isn’t the easiest topic to comprehend.
Before you get started with clean-cut laws, you’ve first got to investigate and classify the different forms of gambling. Is the subject of the legality question sports betting, brick-and-mortar casino games or online wagering?
Online Gambling in the US Believe it or not, online gambling “technically” is not illegal in the United States. There is no federal law that says it is illegal for any persons in the US to place a bet online, excluding sports bets. Even at that, sports bets are not illegal for you place, but it is illegal for sites to take them. Many US citizens still wonder whether online casinos are legal in the US and this is because the United States is a collaged work of federal, state and many local gambling laws.
They’re not all the same and different rules apply to each form.
If that’s not enough to get your mind ticking, you’ve then got to concern yourself with the states of interest. The US is unique in its law system in that each state is able to choose and change the laws. So depending on where you are in the country, what is or is not legal can be totally different.
So what exactly is the story on gambling in the US? What forms are illegal and where are they prohibited?
The state-based problem
Perhaps the biggest problem when it comes to looking at the legality of gambling is the specifics related to the restrictions on a state-by-state basis.
Gambling is legal according to U.S. federal law, but there are a series of significant restrictions when it comes to in-state and online gambling. It’s not simple to give a yes or no answer to the question of whether or not gambling is illegal, but rather a follow-up question regarding the state of residence is necessary.
Since each state is free to regulate and prohibit gambling in any way that it may choose, a full check towards both the type of gambling and the geographical location must be checked to avoid breaking state law.
There are only two states in which all forms of gambling (including the state-run lottery) are completely prohibited: Hawaii and Utah. However, when it comes to casino-based gambling, not all states are particularly lenient.
Federal law does, however, permit Native American Trust Land to be used for games of chance with the caveat of an agreement made between the State and the Tribal Government according to the Indian Gaming Regulatory Act of 1988.
States permitting statewide gambling
There are only two states that permit statewide gambling: Nevada and Louisiana. Both state and local governments impose licensing and zoning restrictions, though, so it’s not as easy as you might think to start up a casino of your own.
Online Gambling Laws In Us
Each of the other states allowing any form of casino-based gambling restricts the areas to small geographic areas that often form casino hotspots, ripe for parties and high roller lifestyles. Atlantic City, New Jersey, and Tunica, Mississippi are all great examples of this, but there are always ways and means to find loopholes in laws. That is exactly what we see with riverboat-based casinos.
Is Online Gambling Illegal In Usa
It is for this reason that we see floating casinos throughout some states that, more often than not, are permanently moored within a body of water and open to the public to play.
Different rules for different games
Another layer of confusion is added when we start considering the legality of different forms of gambling in each state, just in case you weren’t already scratching your head enough.
Depending on the type of gambling, in any of the following categories:
- Charitable – Gambling with proceeds going towards a charitable cause
- Parimutuel – Gambling in which bets of a particular type are placed together within a pool with the house-take deducted.
- Lotteries – Often state-run games of chance that are often used to feed back into the community.
- Commercial – The form of gambling in which the provider makes a profit.
- Tribal – The form of gambling encompassing all operations taking place on tribal land in the US.
- Racetrack – Any form of gambling involving a racetrack e.g. greyhound and horse racing
- Online – Any form of gambling that is based online.
- Sports betting – Any form of gambling in which the outcome of a sporting event is the focus.
A full table showing the legality of each form of betting can be seen in the table below:
| State | Chari-table | Pari-mutuel | Lot-teries | Commercial | Tribal | Racetrack | Online | Sports betting |
| Alabama | Yes | Yes | No | No | Yes | No | No | No |
| Alaska | Yes | No | No | No | Yes | No | No | No |
| American Samoa | Yes | No | No | No | N/A | No | No | No |
| Arizona | Yes | Yes | Yes | No | Yes | No | No | No |
| Arkansas | Yes | Yes | Yes | Yes | N/A | Yes | No | No |
| California | Yes | Yes | Yes | No | Yes | No | No | No |
| Colorado | Yes | Yes | Yes | Yes | Yes | Yes | No | No |
| Connecticut | Yes | No | Yes | No | Yes | No | No | No |
| Delaware | Yes | Yes | Yes | Yes | N/A | Yes | Yes | Yes |
| Washington, D.C. | Yes | No | Yes | No | N/A | No | No | No |
| Florida | Yes | Yes | Yes | No | Yes | Yes | No | No |
| Georgia | Yes | No | Yes | No | N/A | No | No | No |
| Guam | Yes | No | Yes | No | N/A | No | No | No |
| Hawaii | No | No | No | No | N/A | No | No | No |
| Idaho | Yes | Yes | Yes | No | Yes | No | No | No |
| Illinois | Yes | Yes | Yes | Yes | N/A | Yes | No | No |
| Indiana | Yes | Yes | Yes | Yes | No | Yes | No | No |
| Iowa | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Kansas | Yes | Yes | Yes | No | Yes | No | No | No |
| Kentucky | Yes | Yes | Yes | No | N/A | Yes | No | No |
| Louisiana | Yes | Yes | Yes | Yes | Yes | Yes | No | No |
| Maine | Yes | Yes | Yes | Yes | No | Yes | No | No |
| Maryland | Yes | Yes | Yes | Yes | N/A | Yes | No | No |
| Massachusetts | Yes | Yes | Yes | Yes | Yes | Yes | No | No |
| Michigan | Yes | Yes | Yes | Yes | Yes | Yes | No | No |
| Minnesota | Yes | Yes | Yes | No | Yes | Yes | No | No |
| Mississippi | Yes | No | Yes | Yes | Yes | No | No | Yes |
| Missouri | Yes | No | Yes | Yes | N/A | No | No | No |
| Montana | Yes | Yes | Yes | No | Yes | No | No | Yes |
| Nebraska | Yes | Yes | Yes | No | Yes | No | No | No |
| Nevada | Yes | Yes | No | Yes | Yes | No | Yes | Yes |
| New Hampshire | Yes | Yes | Yes | No | N/A | No | No | No |
| New Jersey | Yes | Yes | Yes | Yes | N/A | Yes | Yes | Yes |
| New Mexico | Yes | Yes | Yes | No | Yes | Yes | No | Yes |
| New York | Yes | Yes | Yes | Yes | Yes | Yes | No | No |
| North Carolina | Yes | No | Yes | No | Yes | No | No | No |
| North Dakota | Yes | Yes | Yes | No | Yes | Yes | No | No |
| Northern Mariana Islands | Yes | No | Yes | Yes | N/A | No | No | No |
| Ohio | Yes | Yes | Yes | Yes | N/A | Yes | No | No |
| Oklahoma | Yes | Yes | Yes | No | Yes | Yes | No | No |
| Oregon | Yes | Yes | Yes | No | Yes | No | No | Yes |
| Pennsylvania | Yes | Yes | Yes | Yes | N/A | Yes | Yes | Yes |
| Puerto Rico | Yes | Yes | Yes | Yes | N/A | Yes | No | No |
| Rhode Island | Yes | Yes | Yes | Yes | No | Yes | No | Yes |
| South Carolina | No | No | Yes | No | No | No | No | No |
| South Dakota | Yes | Yes | Yes | Yes | Yes | No | No | No |
| Tennessee | No | No | Yes | No | N/A | No | No | No |
| Texas | Yes | Yes | Yes | No | Yes | No | No | No |
| Utah | No | No | No | No | No | No | No | No |
| Vermont | Yes | No | Yes | No | N/A | No | No | No |
| Virginia | Yes | Yes | Yes | No | No | Yes | No | No |
| United States Virgin Islands | Yes | Yes | Yes | Yes | N/A | Yes | No | No |
| Washington | Yes | Yes | Yes | Yes | Yes | No | No | No |
| West Virginia | Yes | Yes | Yes | Yes | N/A | Yes | No | Yes |
| Wisconsin | Yes | Yes | Yes | No | Yes | No | No | No |
| Wyoming | Yes | Yes | Yes | No | Yes | Yes | No | No |
Legality of different types of gambling in states and territories
Take a look at the table and you might be a little overwhelmed at first, but don’t worry, a second, slightly longer one will serve you well and keep you on the straight and narrow when attempting to gamble throughout the US.
Pick the state of choice and scan the row to see what forms of gambling you’ll be able to engage in while in the state. For die-hard gambling fans, this might just act as the holy grail of tables with all the information you’ll ever need to plan what casinos to visit and what to play when you are in different areas of the country.
Thankfully, if you have accidentally fallen onto the wrong side of the law, punishment is rarely severe and in the majority of states will merely involve minor fines or warnings if caught. However, we do not recommend deliberately ignoring the law when choosing to gamble.
Is online gambling illegal?
What’s perhaps the most interesting in the above table is the lack of legality when looking into online gambling in the majority of states. At first glance it appears that Delaware, Iowa, Nevada, New Hampshire, New Jersey, and Pennsylvania are the only states permitting wagering online – but just how true is the fact?
One of the most frequently asked questions when it comes to the issue of legality is whether or not gambling is illegal when wagering online.
To put it in black and white, there is absolutely no U.S. federal law against the act of gambling online. This makes it absolutely legal to gamble online at the federal level, although it is possible to run afoul of state law. However, the prosecution of gamers is extremely rare and although penalties can be enforced, they are usually very slight.
The confusion surrounding online gambling legality
There is often a large amount of confusion surrounding the legality of online gambling due to the false report from various outlets that Congress had banned all online gambling in 2006.
The reports, for lack of a better word, are simply wrong. Although a gambling-related law was introduced in 2006, it was in no form detrimental to online gambling legality. The law simply made it illegal for banks to move gambling money when the bets that had been placed were already illegal. There was no caveat regarding the placing of bets by players.
Not only is there no mention of its prevention, but there is actually a passage regarding the lack of changes to gambling in the US within the law that reads:
“No provision of this subchapter shall be construed as altering, limiting, or extending any Federal or State law or Tribal-State compact prohibiting, permitting, or regulating gambling within the United States.”
There is absolutely nothing to worry about.
States explicitly legalizing online gambling
When it comes to state laws explicitly legalizing online gambling, you’ll find very few that are completely against the act of online wagering, but there are a couple with overarching gambling laws preventing the betting.
It’s worth checking up on your specific state laws if you’re a little apprehensive about depositing real money at a new place to play. There is the odd state that only allows some forms of gambling e.g. poker and, of course, those that completely forbid all forms. If you’re a resident, the chances are that you’ll already loosely know the laws, but a quick state-specific Google search will confirm the information.
The states that have specifically legalized at least a single form of online gambling are as follows:
- Delaware – Legalized online gambling in 2012
- Nevada – Legalized online poker in 2013
- New Jersey – Legalized poker + casino in 2013
States that have an online gambling prohibition
It may be true that there is very little in the way of explicit online gambling laws, but when it comes to online gambling prohibition in general, there are a number of states that don’t take it too kindly.
So, it’s with a heavy heart, that you’re in for some bad news if you reside in any of the following states:
- Illinois
- Indiana
- Louisiana
- Montana
- Nevada
- Oregon
- South Dakota
- Washington
- Wisconsin
Of course, if you’re unsure of the laws (or just don’t care to follow them) the penalties for gambling online are almost always light. The only states in which recognize gambling as a felony are Washington State and Washington, DC.
For the majority of states, gambling is a misdemeanor, such as in Arkansas and Colorado where the offense is simple and likened to a traffic ticket.
The legality of taking online bets
It shouldn’t come as much of a surprise that the act of taking online bets isn’t the most legal of things you could be doing while surfing the web.
In fact, it has always been against federal law to take sports bets over the internet, despite the fact that it is legal to make them. So if you’re planning on setting up a site and accepting sports bets online, you’ve got another plan coming. The Wire Act is an integral part of the system for keeping players safe when they’re wagering online.
Despite this, finding a reputable place to play can be a challenge and because of the legal issues surrounding online play. We see very few sites that cover the whole of the US for places to play online. Although there are a couple that do, they are usually best to avoid as they tend to be on the shadier side of the law.
To cut a long story short
It’s clear that the laws around gambling in the US are a little bit nightmarish, but if you keep your wits about you and stick to the table before heading out (or staying in) to gamble, you will know exactly where you stand.
Get it wrong and you might be looking at some repercussions. Thankfully, in the majority of cases, these aren’t particularly severe and those playing shouldn’t face any jail time. It is common for the offenses to resemble a parking ticket with fines and warnings: the most that you’re likely to see.
Regardless, it is best to check before heading out and know exactly what the rules are in the state where you are planning to play!
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If you read a lot about gaming, you probably see advice telling you to gamble more online. I have given this advice myself because there’s really no better way to get a lot of games in quickly, gain experience, test yourself in tournaments, etc.
In fact, playing online poker is always widely regarded as one of the best ways to start earning serious poker income if you want to go pro.
There’s only one small problem with this particular piece of advice—online gambling is still either operating in a legal gray area or flat out illegal. If you don’t know your local laws, there’s a very good chance you could end up doing something that’s a crime with a very easy-to-follow paper trail.
The good news is that online gambling is getting legalized in more places all the time, and many states offer some sort of online gaming. Still, there are better and worse states across the United States when it comes to allowing online gambling.
It is my understanding (in other words, the understanding of a non-lawyer) that any game that doesn’t involve money is fair game. You can play as much video poker or roulette or whatever as long as you’re not wagering money.
Areas where you pay money to earn virtual currency that you can’t then cash out also appear to be legal as a few sites (like WSOP.com) appear to operate on this basis. Again, I am not a lawyer. Please feel free to contact a gaming law professional within your area for more specific information.
Is Online Gaming Illegal in the US?
No. Yes… Maybe?
There seems to be a lot of back and forth on the topic on whether it is illegal to play poker or table games at online casinos. (The matter of sports betting is far more certain as all parties agree that betting on sports is illegal in places unless it is specifically allowed.)
Still, there are several very good opinions about online gaming that generally boil down to the argument that there is nothing that specifically disallows one from gaming online. This is especially true if the casino is hosted outside the US.
Is Internet Gambling Illegal In Usa
On the other hand, the FBI has a very well-stated opinion on their site that says online gambling with real money is completely illegal and goes on to show that people have been arrested for it. This article, though dated in 2007, is a pretty strict warning to avoid online gambling.
Again, I’m not a lawyer, but I would never advise one to go against what the FBI said, even if it was in 2007. This is doubly true because a search of FBI.gov does not show that the 2007 opinion was reversed and, in fact, does show arrests for activities outside of online gaming. Therefore, you take your freedom in your own hands if you carelessly gamble online.
With that said, there are plenty of exceptions to whether you can or cannot gamble online, and they vary by state.
New Jersey and Pennsylvania Are the Best States for Online Play
Of the three categories of online gambling activities (casino, poker, and sportsbooks), if you live in New Jersey and Pennsylvania, you have room to celebrate. Your online gambling laws are the most lenient in the country, and you can do all three. More than likely, it won’t be long until more states adopt this attitude, but for now, these states are the most open to letting you gamble from your own home.
Delaware, Nevada, West Virginia, &, Rhode Island Have Online Gambling Options
If living in New Jersey or Pennsylvania is not an option for you right now, there are other states that openly allow some combination of the three major online gaming activities. Delaware will allow you to both frequent an online casino and play poker online.
West Virginia and Rhode Island also allow online sportsbook betting, making them one of a very few number of states to allow sports betting. Strangely enough, Nevada, a state that has counties with legalized prostitution and legalized recreational marijuana will only let you play poker online. They want you to visit in-person casinos for your table games. Nevada sportsbooks do offer online betting through land-based sportsbooks and their respective apps.
Some States Operate in a Gray Area
If you don’t live in one of the states mentioned above, it’s time to start asking around to see what is and isn’t legal. (By the way, don’t just blindly trust the internet on this matter. If you have any concerns, always seek out a legal gaming professional with a real understanding of the law.)
With that said, a lot of state laws are strange or poorly worded when it comes to online gambling. For instance, both Kansas and Missouri have laws that generally fail to mention online gambling. Given how old some state constitutions are, this is hardly surprisingly. Still, both have laws that deal with gambling, though they focus on specific areas (for Missouri, riverboats; in Kansas, lotteries and moral crime).
Therefore, as concerned citizens, each of us has to ask themselves whether it makes sense to try gambling online. There are a lot of sites that preach a doctrine of whatever is not addressed specifically is legal.
For instance, according to K.S.A. 21-6404 of the Kansas Statutes, gambling, which is partially defined as “making a bet” is a class B nonperson misdemeanor. In other words, it’s a crime. So, while the Kansas Constitution doesn’t specifically call out online gambling as being illegal, it does say making a bet is a misdemeanor.
There’s likely an argument that a good lawyer can make in this case, which would somehow show that online gambling is not covered under those statutes. That’s for good lawyers and courtrooms to decide.
What it really boils down to is what the police or federal agents think when they decide if they are going to make an arrest, what the district attorney thinks when they decide to prosecute, and what the judge thinks when they hear the case. If that’s acceptable to you, then you can make that choice. However, online gambling is not for everyone.
Plus, Pennsylvania is apparently a really nice place to live and all online activities are legal there.
Best Bet: Find a Casino or a Non-Cash Site
Because I’m not a lawyer, I can’t tell you that anywhere in the United States is legal to gamble except the states mentioned above. Even then, I would argue that you should check to make sure laws haven’t changed.
As always, while playing poker or casino games online is fun, there are ways you can do it and not get in trouble with the law at all. When it comes to playing games for money, your best bet is to head out to a licensed, reputable casino offshore and play there. It’s a little more work and requires a little more planning, but it’s legal.
Why Is Gambling’s Legality Even an Issue?
This is a good question, though one that’s shrouded in a lot of history. First, gambling in general has often been made illegal because it is an affront to “morality laws” which state the gambling leads to general bad behavior.
There are also a number of non-moral reasons for making gambling illegal, including protecting people from losing all their money on bets or falling into gambling addiction. Plus, physical casinos are notorious for money laundering. Online casinos have even less transparency.
There is some validity to this, too, though making it legal to operate an online casino from inside the US (and regulating and taxing it) would solve a lot of these problems.
Conclusion
It is a little hard to draw a conclusion on the matter of online gaming in the United States. It seems strange that just about everywhere has some sort of legalized gambling outside the home, but few methods for gambling online.
Still, for now, this is the situation in which gamblers find themselves. There are a few places which clearly welcome online gamblers to peruse their hobby in some form. For most of the country, though, the online gambling is a gray area in which there is no specific law against gambling. There’s also plenty of general laws that prevent it.
Online Gambling Banned In Us
In the end, the best policy is to hit a casino and lobby your Congresspeople to change laws. That keeps you out of hot water and playing the games you love so well.