The tax rate in New Jersey is 15 percent plus 2.5 percent to the state’s Casino Reinvestment Development Authority. US Federal law regarding online gambling. Gambling law in the United States is an incredibly complicated matter, thanks in part to the awkward intersection of state and federal law on the issue.

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Do you know enough about online gambling laws in the United States? Do you think that it is legal or illegal to play online casino games in America? Let’s find out. Federal law of the United States recognizes several variations among state online gambling laws, though that does not mean that it is legal in all of the states around the U.S. Online gambling typically occurs in international or interstate means through different web sites and applications. There are several factors regarding online gambling laws that players need to consider before they start to play. For example, What if you play online casino games that launched and established in a country that allows online gambling activities, though, in your place, it is illegal. What happens then? To make it clear for all readers, this post aims to cover related issues and discuss various gambling laws that passed in the U.S.

The previous question about the legality concerning the location of the player can be solved by looking at the laws and the states, then decide which is predominant over others. Although online gamblers could break the law of his/her state, that does not mean that it is illegal to play online casino games from a different state. If X state allows and legalized online gambling and players from different parts of the U.S. play those games, then the predominant role in that equation is the same X state, and players can use their services as they wish.

Intention for making anti-gambling laws in the US

Overall, US online gambling laws focus mainly on the supply end of this business. In other words, they try to decrease the number of products in the online gambling market, rather than cutting the demand for them. Their main intention is to keep in check the online casino owners so that only reliable ones can produce and serve these casinos.

There is NO U.S. federal law that strictly prohibits online gambling

Although states may have different requirements that they customized regarding this issue, on the national level, The United States of America does not have a law against online gambling. So, that means, on the federal level, it is perfectly fine to play online casino games because of the lack of rules that are against this. Some conservative states have strict laws, though the implementation and penalties for that crime are somehow slight.

How online Gamblers Go Under the Radar?

Lacks of internet tracking tools are one of the main reasons why so many casino lovers can maintain their gambling profile in the U.S. Players are so-called “little fish” in the pool for this particular industry. That is why they are not as important as owners of those online casino portals to check regularly. Entities and institutions that mainly offer these services get caught by state officials because they are the “big fish” of the industry. The main reason for that is the idea that we mentioned in the previous paragraph, which is to end the game on the supply end rather than demand one. It is more reasonable to go after financial groups that process all those gambling transactions rather than players who want to entertain themselves in their leisure time.

Legal Loopholes of the Online Gambling Laws

Supreme Court of the U.S. has not necessarily ruled out the exact meaning of the Federal Wire act; thus, states respond to it differently. The United States’ Fifth Circuit Court of Appeals made a jurisdiction in some states. For instance, Louisiana, Mississippi, and Texas are some of those them. On that appeal, we can see that argument that exposes the loopholes of the act. Court of Appeal states that in those three states, the Federal Wire Act only applies to sports betting. So that means, online casino business can set a legal precedent in this industry.

States where Online Gambling is Explicitly Legal

Very few countries in the U.S. have particular laws that are against the online gambling business. Though, most of them have general rules that indicate those acts as a breach of federal law. Those passed laws against gambling include in house, land-based gambling activities just like the online ones. A small group of states acquired online gambling laws that make internet casinos explicitly legal. In some States, only particular types of casino games/ activities are allowed to play and offer. For instance, Bovada is one of those states that only allow players and business owners to play and offer poker. States that allow online gambling entirely are:

State of Nevada:

The state of Nevada became the first state in the United States that legalized online gambling . This event happened on February twenty-first two thousand thirteen. They launched the law on April thirties of the same years. The first game that legalized was Online Poker. After that, casino slots, keno, baccarat, and such games also approved by the federal government and the state of Nevada.

State of Delaware:

Delaware is the second state that launched the law that legalized online gambling inside its borders. In two thousand thirteen November twenty-sixth, Delaware made online gambling laws that lead the way for online casinos to operate.

State of New Jersey:

New Jersey became the third state that legalized online gambling. Both poker slot games and casino games of that nature can be played and offered in New Jersey after the legalization process. The law launched on twenty-fifths of November. Since that time, casino owners of the New Jersey online gambling portals started to run their business.

State violations regarding online gambling are misdemeanors

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Even though some states of the U.S. do not allow players to gamble , the penalties are not that strict. Only states where online gambling is a felony are Washington state, and Washington DC. In states like Colorado or Arkansas, online gambling activities are not legal. Though the penalty for that is used as a simple offense and it is like a traffic ticket.

States that prohibit online gambling

Even though the ban on gambling activities does not necessarily mention online gambling platforms, some states strictly against it. According to the Gambling Law of the United States that defunct in two thousand nineteen, those states that prohibit an online form of gambling are:

• Washington
• South Dakota
• Indiana
• Louisiana
• Montana
• Oregon
• Wisconsin
• Illinois

Some players who convicted for misuse of internet gambling laws

As we mentioned before, the breach of regulations in online gambling is not a big deal. Though some states are strictly trying to punish those people who are not obeying the state laws concerning online gambling. For instance, in two thousand three, a man named Jeffrey Trauman was fined five hundred dollars for his online gambling antics. The fine could be even worse and higher only if Jeffrey played sports betting games. A similar case happened in two thousand eleven at Oklahoma. Ronald Benavides was charged with the U.S. online gambling laws breach. Government wanted to put him on jail, but then in two thousand twelve, he received a deferred sentence. That means, Ronald can avoid jail only if he can stay away from online gambling activities until his probation time finishes.

If you have interest in online gambling laws and want to see whether or not your home state has online gambling laws, you can check this article out. Play games, earn real money but make sure that the casino in which you are playing is legal and safe.

Contents

As discussed in a previous article on the legality of playing blackjack online, the gambling industry in America is one of the most structured and developed gambling environments in the world. It is surprising then, that out of all countries in the world, the US probably has the most confusing situation when it comes to online casinos.

The majority of this confusion stems from the fact that online gambling is partly regulated by federal laws and partly by individual states. Moreover, since each state approaches the subject in a different manner, the average US player is left baffled when trying to decide whether using online casinos is legal in their state.

Current Federal US Laws That Regulate Online Casinos

Here’s a statement no one was expecting — no federal law in the US says that online gambling is illegal. However, it also doesn’t say that it is legal, which makes the market a gray area. US citizens are allowed to place wagers online, but only if the website isn’t based in the US.

The US federal law explicitly prohibits banks — or any other financial institution — to knowingly process transactions between a known web-based gambling business and US-based customers. In essence, it is illegal for your bank to handle a withdrawal or deposit to or from your casino account. That was the goal of the much-grumbled-about UIGEA (Unlawful Internet Gambling Enforcement Act).

You should notice, however, that it isn’t a crime for a US-based player to make or request a transaction — it’s just illegal for the bank to process them.

When it comes to lawmaking, the Tenth Amendment of the US Constitution states that anything that doesn’t have a specifically granted Federal purview and jurisdiction is up to the states. Thus, the Federal Government has not taken any stance related to gambling taking place within individual states — it up to individual states to do that.

The only two areas that the Federal Government regulates are:

• Interstate Commerce

The consequences of the first were already explained. The latter resulted in allowing states such as New Jersey to have online casinos, but only if they are being offered to US citizens physically located within New Jersey’s boundaries.

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Current States’ Laws That Regulate Online Casinos

If federal law was all that US players had to consider, the legality of web gambling would be a lot easier to talk about. Unfortunately for US-based gamblers, US state law is sometimes more restrictive than federal law.

So how strict are US state laws on internet gambling? Some US states have laws that explicitly prohibit all forms of online gambling.

Those are:

• Washington
• Wisconsin
• Illinois
• Montana
• Oregon
• Louisiana
• Utah
• Hawaii

State law prohibits the residents of these states from placing any kind of bet over the internet, regardless of federal regulation. Other states are less strict but are still restrictive — in South Dakota, for example, anyone in “the gambling business” is not allowed to place online bets, which is a really quirky law if you think about it.

Long story short, some US players have to walk a thin line if they want to play in an online casino while remaining within the confines of the law. Thankfully, the US rarely prosecutes online gamblers. We only found two instances where an online gambler broke a law, and both come from politically conservative states.

States in Which Online Casinos Are Legal

Thankfully, several states are more liberal toward online gambling and allow online casinos to operate in their area.

New Jersey

The state of New Jersey doesn’t prohibit online casinos and online poker. It is currently the biggest market for regulated online gambling in the US. Over a dozen licensed and legal online casino websites and poker rooms compete for their place in the sun in a market that is worth over $255 million per year.

Pennsylvania

In PA, online casinos were launched in July 2019 and online poker in November 2019. Gamblers have the option to bet in person or online via mobile app or website. Many Pennsylvanian major land-based casinos have created their online casino versions too.

Delaware

In Delaware, online casinos and online poker were launched at the same time — in November 2013. Although the First State seems like a strange location for amazing web-based gambling, that’s exactly what it is.

Michigan

As of December 20, 2019, online casinos and online poker are legal in the state of Michigan. However, operators are limited to a single online skin, and multi-state games aren’t permitted. Each of the 23 tribal and three commercial casinos can apply for licensing, but online casinos are still waiting to be legalized.

Nevada

Even though it is an unofficial birthplace of American gambling, the state of Nevada only allows online poker in designated poker rooms. Yes, they do have a legal WSOP website, but other online casino games are prohibited.

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Offshore Casinos — A Handy Alternative

Even if you aren’t physically located in the states where online casinos are legal, there is still a way to find some quality entertainment online — by playing in offshore casinos.

Any US citizen can legally access these licensed offshore gaming platforms from most states. As we already explained, in Washington, Wisconsin, Montana, Illinois, Utah, Hawaii, Oregon, and Louisiana, all forms of online gambling are explicitly forbidden.

If you are wondering whether it is safe to play in casinos that aren’t licensed in the United States, the answer is yes. These casinos are legitimate and have clearly defined guidelines and rules that ensure a safe and fair gaming environment.

In addition, in order to offer casino games to gambling enthusiasts and be able to do business around the globe, offshore casinos need a license from reputable gambling jurisdictions, which makes them safe and trustworthy.

Moreover, since no federal law prevents US-based players from gambling in licensed offshore casinos, they can enjoy playing their favorite games on these platforms. Safe online casinos that accept US citizens possess valid certificates and licenses and are monitored by reputable governing bodies. They also have enticing welcome bonuses, a slew of interesting games, and a protected online gaming environment.

Future of US Laws That Regulate Online Casinos

The future is bright. Really bright. The biggest obstacle toward legalizing online casinos in the US was that the government was trying to stop the gradual loss of citizens’ interest in their official gambling zones — Las Vegas and Atlantic City. Since that has already happened, there is nothing that stands in the way of progressive legalization of online casinos across the nation.

Not to mention the fact that states without legal online casinos are starting to lose gambling aficionados who travel across state lines in order to play in states where gambling is legal. For instance, the legislative trend in New York is going toward expansion of gambling activities rather than contraction, since the state doesn’t want to lose its players to its neighbor New Jersey.

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FAQ

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You need to be at least 21. Even though the legal age limit for the online lottery is 18, you have to be 21 to play in an online casino. It is likely that lawmakers will decide to change the limit in the future.

In the states where they are legalized, online casinos must follow strict regulations and are therefore completely safe. However, you should exercise due diligence — always do thorough research before you decide to join a casino.

Yes, you can; many casinos offer these games. Lately, a lot of online casinos have begun introducing this section on their platforms. Live casino games are popular since they offer a genuine casino experience. Of course, not all online casinos sport a Live Casino section, so make sure you find those that do.

Just like all other industries today, the online casino industry is very competitive, meaning there is a myriad of casino games at your disposal. Any land-based casino game you can think of probably has an online version. What’s more, online casinos can often surprise you and you can run into some games you’ve never even heard of.

To cater to the needs of their players and thus remain competitive, the majority of online casinos offer a broad selection of payment methods. This results in easy and secure online payments. Of course, the processing time depends on the payment option you select.

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Yes, you can. Online casinos, like other websites, understand the importance of mobile optimization and do everything in their power to meet the needs of their players. Since many players prefer to use their smartphones to play games, most casinos either have a fully optimized mobile site or a dedicated mobile app.