Also, if you are planning to operate an online gambling site, stay outside of the United States. You must also deal only with casino and poker wagers (not sports bets) from people in the US. And you cannot take bets over the phone from people in the United States. Accepting online gambling advertising is also illegal. Gambling is wholeheartedly illegal in Utah and Hawaii, as they are well-known for their gaming prohibitions and strict anti-gambling laws. These two states have often reasoned that gambling would destroy their religious values, moral family structures, and harm their communities. There is over $100 Billion in illegal gambling each year in the USA, and that money is not taxed. Million Jobs Created In Gaming Industry According to the latest research, there are currently more then 1.8 million people working in the gambling industry in the USA.

To see how far regulated gambling in the USA has come, we have made this timeline to show over 90 years worth of history. From the legalization in Nevada, up to the present day and a look at the states who are still to legalize gambling.

1931 – Introduction of legalized gambling in Nevada.

1949 – First government-sanctioned sportsbook opens in Las Vegas

1975 – First brick-and-mortar sportsbook inside a casino opens in Las Vegas, Nevada.

1961 – Wire Act passed to target racketeering. The act made it expressly illegal to use wire communication (phones, telegrams, and other means) to pass information that assisted in betting on sports.

1984 – Congress reduces tax on sportsbooks from 2% to 0.5%, making them even more economically viable.

1993 (January 1st) – Professional and Amateur Sports Protection Act (PASPA) passed, expressly prohibiting states from either allowing or offering any sports betting services related to either professional or amateur sports. The entire state of Nevada is “grandfathered”, meaning Vegas sportsbooks are exempt of the legislation.

Supreme Court ruling on PASPA back in 1993

1996 – First online bet is placed at Austrian-based Intertops sportsbook.

2006 – Unlawful Internet Gambling Enforcement Act (UIGEA) passed, criminalizing the act of accepting money from any person who was a part of an unlawful online gambling operation occurring on US soil. Online books are forced to go “offshore”.

2011 (April 15th) – Criminal case brought against three of the largest online poker companies operating, effectively wiping out the entire industry in the U.S.

2012 (January) – New Jersey Governor Chris Christie signs legislation allowing sports betting in the state, a move that would ultimately help lead to repeal of PASPA.

2013 – New Jersey online casinos and poker sites begin operating.

2018:

March 10th – West Virginia legalizes sports betting, making way for August 2018 launch.

West Virginia was one of the first states to legalize sports betting

May 14th – U.S. Supreme Court repeals federal law (PASPA) preventing individual states from regulating sports betting. The law had been passed on January 1st 1993.

June 5th – Legal sports betting begins in Delaware at the state’s three casinos. The Delaware Lottery is charged with regulation and oversight of the industry.

June 14th – First retail sportsbooks open in New Jersey.

August 1st – Legal sports betting begins in Mississippi albeit limited to water- and land-based casinos.

August 6th – DraftKings Sportsbook app, created under a partnership with Kambi and casino license of Resorts, becomes first legal online option for New Jersey bettors. playMGM and SugarHouse Sportsbooks launch in the same month.

August 30th – soft launch of retail sports betting in West Virginia at the Hollywood Casino at Charles Town, as a result of partnership with Penn Gaming National and DraftKings. Full launch two days later.

September – New Jersey online bettors get five further options: BetStars Sportsbook (later rebranded to FOX Bet Sept. 2019), FanDuel Sportsbook, William Hill Sportsbook, Caesars Sportsbook, 888 Sportsbook.

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September 13th – FanDuel opens retail sportsbook at The Casino Club at The Greenbrier (a private club) in West Virginia.

October 16th – sports betting starts at the tribally-owned Santa Ana Star Casino Hotel, New Mexico.

November 17th – William Hill in partnership with Hollywood Casino launch Pennsylvania’s first retail sportsbook.

November 21st – William Hill launches third retail sportsbook in West Virginia in partnership with Mountaineer Casino Racetrack & Resort.

December 11th – PointsBet NJ Sportsbook soft launch (full launch Jan. 2019). The Australian company introduces a new way to bet – ‘PointsBetting’ – to a U.S. audience.

December 15th – SugarHouse Sportsbook and Rivers Sportsbook PA launch out of temporary locations in Pennsylvania.

December 28th – First sports betting app, BetLucky.com, launches in West Virginia.

2019:

March 7th – BetLucky.com ceases operations due to legal dispute between owner Delaware North and supplier, Mionmi. Bettors in the Mountaineer State left without mobile options until Aug.26.

March 13th – FanDuel launch retail sportsbook at the Valley Forge Casino.

May 3rd – Legal sports betting in Montana signed into law; launch pending regulations being finalized.

May 8th – Indiana Gov. Eric Holcomb signs a sports betting bill into law, allowing statewide wagering.

May 28th – Mobile betting begins in Pennsylvania with launch of SugarHouse Sportsbook betting app.

May 13th – Sports betting legalized in Iowa.

June – Parx Sportsbook and BetRivers online/mobile sportsbooks launch in Pennsylvania.

BetRivers launches in Pennsylvania

June 28th – Illinois Gov. J.B. Prtitzker signs sports betting bill into law, but industry not expected to launch until 2020.

July 1st – Legal sports betting starts in Arkansas at the Oaklawn Racing Casino Resort. Mobile wagering not allowed in the state currently.

July 1st – Online sports wagering legalized in Tennessee. All betting must be done online or via a mobile device as no casinos in the state. Expected launch in second half of 2020.

July 12th – New Hampshire Gov. Chris Sununu signs sports betting bill into law. Target launch date is July 1, 2020.

July 16th – Almost six years after first becoming legal, New York sports betting becomes reality at the Rivers Casino, Schenectady. Mobile/online betting currently off the table, but that could change in 2020.

July 22nd – FanDuel Sportsbook PA goes live in Keystone State.

July 26th – Sports betting is legalized in North Carolina but only at retail locations initially. Early 2020 launch anticipated.

August 15th – legal sports betting – both retail and mobile – starts in Iowa at eight of the state’s authorized casinos (18 of the 19 casinos given approval). Bettors have to first register in person and through to Jan. 1 2021.

August 26th – FanDuel Sportsbook mobile app goes live in West Virginia.

August 27th – legal sports betting hits the West Coast with launch of retail sportsbook at the tribally-owned Chinook Winds Casino Resort in Lincoln City.

August 28th – DraftKings Sportsbook mobile app goes live in West Virginia.

September 1st – retail sports betting starts in Indiana, with ceremonial first bets placed at the Caesars Indiana Grand Casino in Shelbyville by Gov. Holcomb.

September 4th – Rhode Island launches mobile sports betting at one casino with legal minimum age set at 18. Bettors have to first create accounts in person.

September 12th – Fox Sports launch FOX-Bet-branded app in Pennsylvania, the first of its kind by a U.S. media company.

September 24th – Kindred Group, in partnership with Mohegan Sun Pocono, launch Unibet-branded retail sportsbook.

October 3rd – Draftkings and BetRivers (Rush Street Interactive) launch mobile apps in Indiana.

October 3rd – Ted Leonsis, the owner of Capital One Arena, Washington D.C., signs deal with William Hill. Construction of sportsbook – the first inside a U. S. Sports venue – to begin after all required regulatory approvals.

October 11th – The Meadows officially becomes the 10th Pennsylvania casino with a retail sportsbook, following a soft launch two days earlier.

October 16th – Oregon State Lottery launches Scoreboard app, becoming first lottery in the U.S. to offer online sports betting.

October 20th – after a rocky start, the Scoreboard app hits one million dollars in wagers and despite absence of any NCAA games. Bettors must visit the Chinook Winds Casino to place these in person.

October 22nd – FanDuel launch mobile betting product in Indiana through a partnership with Blue Chip Casino and Belterra Casino.

As of 2019, October 24th, there are 13 U.S. states with legal, regulated sports betting industries (either retail, mobile or both), as follows:

Nevada, Delaware, New Jersey, Mississippi, West Virginia, Pennsylvania, Rhode Island, Arkansas, New York, Iowa, Indiana, Oregon and New Mexico*.

*not strictly legal but offered under existing tribal gaming compact.

Projected to legalize in 2020

11 states in total: Colorado, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Missouri, North Dakota, Ohio and Virginia.

Projected to legalize in 2021

Gambling Illegal In Usa

Seven states in total: Alabama, Arizona, California, Connecticut, Florida, Maryland and Texas.

Legal sports betting nowhere in sight

14 states in total: Alaska, Georgia, Hawaii, Idaho, Minnesota, Oklahoma, South Carolina, South Dakota, Utah, Vermont, Washington, Wisconsin and Wyoming.

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Gambling license USA

We summarize the most important online gambling laws pertaining to gambling operators and users of gaming services. Specifically within the countries where online gambling is legal to some degree or other.

If after reading this document you are still unsure of what to do, we assist you with a USA legal opinion for your casino, game or sportsbook.

Gambling license USA

Sports Betting Legalized In Us

The USA is a very lucrative market for online gambling companies. Although, there are many legal risks involved. Since 24% of all online gamblers in the world reside in North America, and the majority of gambling companies doing their hosting in Curacao (where we have our operations – to find out more Click here), we go into detail about the legal situation in this country.

The individual States in the USA have the power to make laws pertaining to their state only. But on the other hand, there are Federal Laws that are applicable to the whole country, while protecting State rights. This makes the online gambling legal situation in the country very complex.

We start by giving an overview of the main Federal laws that address the legality of online betting, wagering and gambling in the USA. We will then have a look at the situation in the individual States.

USA Federal gambling laws:

1. The Interstate Wire Act of 1961 (commonly referred to as the Federal Wire Act).
This law addresses only the issue of online sports betting and wagering. It does not address the legality of online gambling as such.

Here is paragraph (a) from that law:
“Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.”

Source: http://www.law.cornell.edu/uscode/text/18/1084

2. Illegal Gambling Business Act of 1970

The Illegal Gambling Business Act was enacted as part of the Organized Crime Control Act of 1970. This Act was designed to be a companion to other laws, such as the Federal Wire Act, in targeting a source of income for organized crime. Unlike the Federal Wire Act, the Illegal Gambling Business Act is designed to assist states in enforcing their laws with regard to interstate gambling activities and is dependent on a predicate state offense.

Here are some extracts from that law:

18 U.S.C. 1955 the Statute
Prohibition of illegal gambling businesses
(a) Whoever conducts, finances, manages, supervises, directs, or owns all or part of an illegal gambling business shall be fined under this title or imprisoned not more than five years, or both.

(b) As used in this section-
(1) “illegal gambling business” means a gambling business which-
(i) is a violation of the law of a State or political subdivision in which it is conducted;
(ii) involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business; and
(iii) has been or remains in substantially continuous operation for a period in excess of thirty days or has a gross revenue of $2,000 in any single day.

And:

(e) This section shall not apply to any bingo game, lottery, or similar game of chance conducted by an organization exempt from tax under paragraph (3) of subsection (c) of section 501 of the Internal Revenue Code of 1986, as amended, any private shareholder, member, or employee of such organization except as compensation for actual expenses incurred by him in the conduct of such activity.

3. Interstate Wagering Amendment of 1994

This Act relates mostly to lotteries:

“Whoever brings into the United States for the purpose of disposing of the same, or knowingly deposits with any express company or other common carrier for carriage, or carries in interstate or foreign commerce any paper, certificate, or instrument purporting to be or to represent a ticket, chance, share, or interest in or dependent upon the event of a lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, or any advertisement of, or list of prizes drawn or awarded by means of, any such lottery, gift enterprise, or similar scheme; or, being engaged in the business of procuring for a person in 1 State such a ticket, chance, share, or interest in a lottery, gift, enterprise or similar scheme conducted by another State (unless that business is permitted under an agreement between the States in question or appropriate authorities of those States), knowingly transmits in interstate or foreign commerce information to be used for the purpose of procuring such a ticket, chance, share, or interest; or knowingly takes or receives any such paper, certificate, instrument, advertisement, or list so brought, deposited, or transported, shall be fined under this title or imprisoned not more than two years, or both.”

4. Unlawful Internet Gambling and Enforcement Act of 2006 (UIGEA)

Online Gambling Laws In Us

The Act prohibits gambling businesses from knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the Internet and that is unlawful under any federal or state law (termed “restricted transactions” in the Act). The Act also requires Treasury and the Federal Reserve Board (in consultation with the U.S. Attorney General) to promulgate regulations requiring certain participants in payment systems that could be used for unlawful Internet gambling to have policies and procedures reasonably designed to identify and block or otherwise prevent or prohibit the processing of restricted transactions.

The Treasury and the Federal Reserve Board have issued a joint rule that designates five payment systems which are covered by the Act. These systems are:
(i) automated clearing house (ACH) systems,
(ii) card systems,
(iii) check collection systems,
(iv) money transmitting businesses, and
(v) wire transfer systems.

The Act starts with the following paragraphs:

“(a) Findings.- Congress finds the following:
(1) Internet gambling is primarily funded through personal use of payment system instruments, credit cards, and wire transfers.
(2) The National Gambling Impact Study Commission in 1999 recommended the passage of legislation to prohibit wire transfers to Internet gambling sites or the banks which represent such sites.
(3) Internet gambling is a growing cause of debt collection problems for insured depository institutions and the consumer credit industry.
(4) New mechanisms for enforcing gambling laws on the Internet are necessary because traditional law enforcement mechanisms are often inadequate for enforcing gambling prohibitions or regulations on the Internet, especially where such gambling crosses State or national borders.”

Notwithstanding section 5362 (2), a financial transaction provider, or any interactive computer service or telecommunications service, may be liable under this subchapter if such person has actual knowledge and control of bets and wagers, and-
(1) operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers may be placed, received, or otherwise made, or at which unlawful bets or wagers are offered to be placed, received, or otherwise made; or
(2) owns or controls, or is owned or controlled by, any person who operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers may be placed, received, or otherwise made, or at which unlawful bets or wagers are offered to be placed, received, or otherwise made.”

More information can be found at: http://en.wikipedia.org/wiki/Unlawful_Internet_Gambling_Enforcement_Act_of_2006

Because of these Federal gambling laws, online gambling companies are hosting their operations in off-shore countries that supply legal gambling licenses and also using off-shore money transfer services. But even doing so has its risks as can be seen from the recent arrests of the founders of companies like PokerStars, Full Tilt Poker, and Absolute Poker.

The United States judiciary system seems to target only the largest online gambling operators (many of them quoted on the Stock Exchanges), which leaves the market open for the smaller companies. Indeed, we see a spike in these smaller companies’ business turnover as gambling enthusiasts moved over to them after their main resources were cut off.

According to Department of Justice the companies allegedly tried to circumvent UIGEA rules with the help of others who acted as “payment processors” by helping to disguise gambling revenue as payments for non-existent goods such as jewelry or golf balls. A bank in Utah was charged as an accomplice.

State Laws:
The legality of online gambling varies across among each individual state. As of late, many states have taken significant strides in the online gambling industry. New Jersey has been at the forefront of legalizing online gambling. In fact online gambling has been legal for quite some time there. In total, the online casinos have generated a staggering 1.4 billion dollars in revenue. And since legalization, annual growth has skyrocketed.

In order toobtain an online gambling license within New Jersey, one will have to partner with a local land-based casino. If the commercial agreement is successful, financial disclosures as well as game testing will follow. As of mid 2020, Pennsylvania and West Virginia have both adopted the same process.

States Where Sports Betting is Legal:

States such as Illinois have renewed their Gambling Acts to allow for online sports betting. However, like many other states with similar laws, the new Illinois Gambling Act does not permit any other form of online casinos. Many states that have opted for legalizing online sports betting but have yet to even review the ban on online casino gambling. These are the following states that have legalized some form of sports betting:

Washington
Oregon
Montanan
Colorado
New Mexico
Arkansas
Mississippi
Tennessee
North Carolina
Delaware

States Where No Specific Legislation Exists:

The question of the legality of online gambling is a complex one. As it stands many States do not have explicit laws on this question. Even so, the following States have instituted specific laws that prohibit internet gambling. That which would make it illegal for their citizens to take part in online gambling activities:
Louisiana
Montana
Minnesota
South Dakota
North Dakota
Wisconsin

That does not mean that States not on the list allow online gambling – there may just not be a specific current law dealing with that issue.

We are indebted to http://www.gambling-law-us.com for the following information on the different gambling laws of the individual States:

(Follow the links attached to each State to get the details of the specific legal situation)

Online Gambling Illegal In Us

For more information:
As gambling is regulated by state and territory, you can review the links under the “Gambling and Licencing” heading.

Online Gambling Illegal In Usa

Get in touch:

FURTHER INFORMATION ON CURACAO GAMBLING LICENSES

Is Gambling Illegal In Usa

We wrote an article on Curacao Gambling License which may be of interest to you should you be looking for alternative casino licensing information.