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  • Latest

The Legality of Online Casinos in the USA

  • April 8, 2019
  • Def Pen
Las Vegas
Paul IJsendoorn

The legality of online gambling in the United States is not an easy subject to discuss. The results of various surveys indicate this is the jurisdiction with the most intricate gambling laws in the entire world. This can be explained by the fact online gambling is regulated on a state-by-state basis.

Online betting was not subject to any regulations prior to the passage of the UIGEA (Unlawful Internet Gaming Enforcement Act) in 2006. This legislation was passed as part of the SAFE Port Act and in effect, banned the providers of online gambling services from accepting money transfers from US-based customers. US banks and financial companies were instructed to hinder such payments as well.

This resulted in as much as 72% of the online gambling operators closing their virtual doors to players from this jurisdiction. Some offshore companies chose to stay despite the restrictions and continued to accept bets from the US under licenses issued in other jurisdictions like Curacao and Costa Rica.

• US Players Continue to Bet Online Despite Restrictions

The truth of the matter is many people prefer to play online regardless of the legal obstacles they are facing and US players are not an exception. It appears the gambling fever extends outside the scope of us mortals, with an increasing number of celebrity gambling stories making the news as of late.

Furthermore, citizens of the USA are not persecuted for taking their betting action to foreign gambling sites although wagering at online casinos operating without a valid local license carries some risks for such players.

For one, there will be no authority to assist such customers in resolving ensuing disputes with the operators. If an unauthorized casino decides to decline the payment of your winnings, for example, there will be no regulator to side with you.

Many of these websites are geared particularly toward the needs of players from this market, giving them the chance to deposit and withdraw money with cryptocurrencies like Bitcoin. This ensures successful, quick, and anonymous payments since cryptocurrencies are decentralized and as such, are outside the scope of the UIGEA restrictions.

• Certain Forms of Online Gambling Are Legal in Some States

Yet, online betting is not prohibited throughout the entire country. Some states have legalized certain forms of interactive gambling in an attempt to combat the wave of offshore online casinos accepting illegal wagers from the US and pour additional revenue into their coffers.

As of the present moment, forms of legal online betting are available across several states, largely thanks to the Supreme Courts’overturning the state-wide prohibition on sports betting in May of 2018. Each US state currently has the freedom to determine its own laws and regulations in regard to sports betting which may lead to further expansion of online gambling industry in the country.

In the state of New Jersey, gamblers can legally place bets on online casino games, online poker, and sporting events. Pennsylvania also gave the green light to online sports betting and casino gambling although currently there are no active online casinos operating in the Keystone State.

Delaware was the first US state to legalize online gambling, which happened as early as 2012. Gamblers from the Diamond State can make legal bets on the websites of three licensed racinos where they can place wagers on slots, roulette, blackjack, and video poker.

Several other US states are amid discussions on passing legislation to legalize online sports betting. Lawmakers in Michigan have been ruminating on legal sports wagering for several years until they finally came up with a bill at the end of 2018.

The proposed bill was to permit the state’s regulators to grant licenses for sports betting to local racetracks, commercial, and tribal casino operators. The bill was stalled after outgoing Michigan Governor Rick Snyder vetoed it at the end of 2018. Other states that may potentially introduce sports betting include Washington DC, Ohio, Indiana, Iowa, Maryland, and Kentucky.

Until then, gambling and sports betting mavens from the country can take their action to offshore gambling sites that offer them a greater diversity of games alongside betting markets on a variety of sports and races, including major events like the Cheltenham Festival.

It takes place annually in March at the eponymous racetrack, attracting crowds of racing fans and celebrities. Here you can read more about the hottest Cheltenham Festival stories this year.

Def Pen

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