Online Gambling Laws in the US

Published: 27 July 2023 / Updated: 27 July 2023

Gambling has long been considered an uncomfortable subject in America due to legal restrictions placed upon its activities and long-held taboo status. Even so, gambling activities have seen an explosion of popularity over recent decades due to changes in attitudes toward them and new technology that enables them to operate.

Online gambling in the States may have played a critical role in altering both legal and cultural norms, yet its proliferation may only add more confusion due to how blurry its boundaries have become.

One factor contributing to confusion may be changes to restrictions that were once in place, with one notable instance being when the Supreme Court overruled an established federal law and allowed states to decide for themselves whether iGaming should remain illegal activity or be authorized.

Yet there are other aspects that make the legal outlook for online gambling in the US more complex than necessary, and why the US stands out as more confusing compared to countries that have made decisions either pro or con about online gaming.

Unlawful Internet Gambling Enforcement Act of 2006

Federal Laws Regarding Online Gambling

Federal laws regarding online gambling can be complicated and deceiving. For example, the Unlawful Internet Gambling Enforcement Act of 2006 bans banks from processing financial transactions related to online gambling; however, this act does not explicitly criminalize the activity itself; players may find their rights protected as online gambling is not prohibited under federal law and are thus exempt from fines or imprisonment as a result.

State Laws Regarding Online Gambling

Each state imposes its own regulations regarding online gambling, with some legalizing it while others do not. While in some states you can play casino and poker games legally online, in others only state-run lottery is available online. If you are unsure if online gambling is legal in your state, it is recommended that you visit your State's Gaming Commission website and review their laws. It can also be advisable to keep informed on any developments pertaining to online gambling, as there are always new advancements occurring within this sector. Politicians running for election often examine how online gambling could impact their state, seeking public feedback for any plans that they may propose.

Sweepstake Casinos

Sweepstake casinos provide a legal alternative to those not in a regulated state, as these are available to use freely because they do not feature the same aspects that traditional gambling does. Although it is possible for players to enjoy classic casino games such as slots and table games, they do not require any real money to be spent as they use an in-game two-currency system. Players are provided with gold coins that can be used as wagering currency on the playable titles. You are able to purchase more of these gold coins when you run out, but most sites will provide a daily allowance and top you up if you log in at least once per day.

Online Gambling and Sports Betting

Currently, sports betting is the most popular form of online gambling in the US. In 2018, the Supreme Court decided to repeal the Professional and Amateur Sports Protection Act, giving the power to states to legalize sports betting. Numerous states decided to capitalize on the ruling and now permit online sports betting. However, there are still some states that prohibit it. Like online gambling, the legality of sports betting in your state depends on where you live.

The Bottom Line

There is no denying that the water is rather murky when it comes to the legality of online gambling throughout the US. However, one way to avoid being in potential trouble is to check what the laws regarding the activity are in the state that you are based in. A simple internet search can usually be enough to suffice. If online wagering is not permitted, then do not forget that sweepstake casino could be a viable alternative, as they offer the same gameplay experiences without the use of real money!

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