Gambling laws in general, have not been easy to follow in the United States over the years. There have been several laws and regulations put in place that all have an impact on online gambling and we will look at the most significant below. Each of the federal laws listed have had an influence or continue to have an influence on online gambling today.
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Federal Wire Act
We must go back to the 1960’s to find the introduction of the Federal Wire Act. This law was introduced by President John F. Kennedy to help prevent organized crime based in illegal sports betting activities. It stopped businesses from using telephones to accept bets on sport. In terms of online gambling today, the Federal Wire Act is still in place and it means people can have a wager on sporting events online but only using licensed providers in their state, not those in other states, which come under a different jurisdiction.
Each state that offers legal sports betting must act independently and that means sportsbooks cannot legally offer their services across the United States, they must apply for a license for each state in which they would like to operate. That applies for both sportsbook websites and mobile sportsbooks.
Professional and Amateur Sports Protection Act
The Professional and Amateur Sports Protection Act (PAPSA) is no longer in effect but up until 2018, it banned all forms of sports betting outside the state of Nevada. This differed from the Federal Wire Act which concentrated on the transfer of sports betting funds across state lines as PAPSA prevented anyone from outside Nevada accepting sports wagers online or in person.
In May 2018, the Supreme Court struck down this law and it means each state is now responsible for making their own regulations regarding online sports betting. However, it is important to note that the end of PAPSA did not automatically mean online sports betting became legal in every state and there are still many states where online gambling has not been legalized.
Unlawful Internet Gambling Enforcement Act
In 2006, President George W. Bush introduced the Unlawful Internet Gambling Enforcement Act (UIGEA) and made it illegal to process payments for gambling online. UIGEA stated any form of online gambling was illegal in the US and that remained the case until 2011, when the Justice Department’s Office of Legal Counsel issued a new take on UIGEA.
The Office of Legal Counsel stated online casinos were not illegal and could not be banned by the Federal Wire Act because phone calls had no part of casino gaming.
What that Means for Online Gambling and Mobile Casinos
As US states can now legalize online gambling, we have six states (soon to be 7) where it is possible to play casino games, both using websites and mobile applications. As of June 2023, you can play online casino games legally in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia.
There are many more states where legal online sports betting is available, and, at the time of writing, legal online sports betting is on offer in 33 states. This is set to increase throughout the year and into 2024 with some states, including Alabama, California, Florida, and Kentucky, coming close to legalizing online sports wagers.
It is clear most people are going to be in a state where legal sports betting is available within the next two or three years. However, the same cannot be said about online casinos but there is an option for those living outside the legalized online casinos states.
Sweepstake casinos do not require a license to operate in the US, with the Funrize real money casino app being a good example. It is possible to play casino games online using sweepstake casinos without having to use any real money and that means they do not have to follow the same legislation as real money online casinos. Anyone in the US, except those residing in Idaho and Washington D.C., can legally join and play games at sweepstake casinos. However, it is always wise to check the game providers and independent iGaming bodies before joining to ensure the casino and games are of the highest standard.
