How to Know if It’s Legal to Use a Casino Site in America
By Shadrack Kairu
Navigating the legal online gambling landscape in the US can be as challenging as a high-stakes poker game. The reason is while gambling is legal at the federal level, regulations vary from state to state. Oftentimes, this makes it hard to immediately determine which states offer legal online gambling.
Luckily for you, in this guide, we’ll break down the US online gambling laws, including the legal status in each of the 50 US states. Additionally, we’ll show you the best alternative to real money online casinos, especially for those in states that illegalize online casino gaming. Let’s dive straight into it!
Federal Gambling Laws Decoded
As we just mentioned, in the United States, states are the primary regulators of online gambling activities. They’re responsible for making and enforcing gambling regulations as well as licensing gambling operations within their borders.
On its part, the federal government mainly plays a supporting role, only stepping in if gambling activity is conducted in violation of state gambling laws. In other words, there’s currently no federal law that criminalizes online casino gaming.
The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) prohibits any person or business from knowingly accepting payments as a result of another person engaging in unlawful Internet gambling. In plain language, UIGEA bans online gambling operators from transferring funds to and from the US players.
However, the law doesn’t explicitly mention online casino gaming. Apart from that, it specifically excludes fantasy sports, skill games, and intrastate or intertribal games that meet certain requirements.
Meanwhile, the Federal Wire Act of 1961 also prohibits the electronic transmission of wagers or gambling-related information across interstate telephone lines. The Wire Act resulted from the federal government’s effort to stamp out local criminal activities that promoted national criminal organizations.
While the Act’s wording is a grammarian’s nightmare, it targeted the mob’s most profitable racket – horse racing and sports gambling – by banning the use of interstate communication technology to handle such wagers.
The Wire Act, however, was no longer being applied as originally intended by the drafters in 1961. It opened the door for inconsistent interpretations and became a tool for political manoeuvring. The Wire Act was often used alongside the UIGEA to determine if any state laws were violated. As expected, this had a potential negative impact on regulated casino gaming.
Fortunately, in 2011, the U.S. Department of Justice (DOJ) published a revised opinion that changed how the federal government interpreted the Wire Act of 1961. The DOJ indicated that this act only applies to sports betting, which means it doesn’t prohibit other forms of online gaming.
The DOJ’s new stance on the Wire Act ultimately made it possible to legalize and regulate new forms of online gambling on a state-by-state level. Although each state has its laws as to what’s legal and what’s not, in general, US casinos are becoming more accepted not only by local, state, and federal lawmakers but also by the general public. Moreover, every gambling company must acquire a valid license from the state in which it operates.
Navigating the State-by-State Gambling Maze
As no federal law explicitly permits or prohibits online gambling, the burden is left to individual states to chart their way forward. This means that each state is free to allow or prohibit the practice within its borders.
States’ authority to make and implement their own online gambling laws has created unique systems in each jurisdiction. For example, some states only allow online gambling; others only permit in-person wagering, while a few allow both. Additionally, some states like Hawaii and Utah have completely banned all forms of gambling.
As of 2024, online casinos are legal in six US states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. In addition, legalization has been proposed in Illinois, Kentucky, Louisiana, Massachusetts, New Hampshire, New York, and Rhodes Island.
The table below shows which forms of gambling are legal in each state right now as the result of state-specific gambling legislation:
| State | Online Casinos | In-Person Casinos | Sweepstake Casinos |
|---|---|---|---|
| Alabama | Illegal | Legal | Legal |
| Alaska | Illegal | Illegal | Legal |
| Arizona | Illegal | Legal | Legal |
| Arkansas | Illegal | Legal | Legal |
| California | Illegal | Legal | Legal |
| Colorado | Illegal | Legal | Legal |
| Connecticut | Legal | Legal | Legal |
| Delaware | Legal | Legal | Legal |
| Florida | Illegal | Legal | Legal |
| Georgia | Illegal | Illegal | Legal |
| Hawaii | Illegal | Illegal | Illegal |
| Idaho | Illegal | legal | Legal |
| Illinois | Illegal | Legal | Legal |
| Indiana | Illegal | Legal | Legal |
| Iowa | Illegal | Legal | Legal |
| Kansas | Illegal | Legal | Legal |
| Kentucky | Illegal | Illegal | Legal |
| Louisiana | Illegal | Legal | Legal |
| Maine | Illegal | Legal | Legal |
| Maryland | Illegal | Legal | Legal |
| Massachusetts | Illegal | Legal | Legal |
| Michigan | Legal | Legal | Legal |
| Minnesota | Illegal | Legal | Legal |
| Mississippi | Illegal | Legal | Legal |
| Missouri | Illegal | Legal | Legal |
| Montana | Illegal | Legal | Legal |
| Nebraska | Illegal | Legal | Legal |
| Nevada | Illegal | Legal | Legal |
| New Hampshire | Illegal | Illegal | Legal |
| New Jersey | Legal | Legal | Legal |
| New Mexico | Illegal | Legal | Legal |
| New York | Illegal | Legal | Legal |
| North Carolina | Illegal | Legal | Legal |
| North Dakota | Illegal | Legal | Legal |
| Ohio | Illegal | Legal | Legal |
| Oklahoma | Illegal | Legal | Legal |
| Oregon | Illegal | Legal | Legal |
| Pennsylvania | Legal | Legal | Legal |
| Rhode Island | Illegal | Legal | Legal |
| South Carolina | Illegal | Illegal | Legal |
| South Dakota | Illegal | Legal | Legal |
| Tennessee | Illegal | Illegal | Legal |
| Texas | Illegal | Legal | Legal |
| Utah | Illegal | Illegal | Illegal |
| Vermont | Illegal | Illegal | Legal |
| Virginia | Illegal | Legal | Legal |
| Washington | Illegal | Legal | Legal |
| Washington D.C. | Illegal | Illegal | Legal |
| West Virginia | Legal | Legal | Legal |
| Wisconsin | Illegal | Legal | Legal |
| Wyoming | Illegal | Legal | Legal |
As you can see from the table above, the majority of the US has yet to legalize online casinos. Only six states currently allow legalized online casino gaming. However, sweepstakes casinos are legal in all states except Hawaii and Utah.
A type of social casino, sweepstakes casinos have emerged as a unique and legal form of online casino gambling in the United States. Although these casinos do not technically offer gambling for real money, they offer an opportunity to win real cash prizes, thereby making them an alternative to real money online casinos.
Legal Gambling: Knowing Your State’s Stance
The legality of online gambling in the US depends on where you are located and what specific laws govern online gambling in that jurisdiction. As most states restrict gambling in some form, it’s important to understand the law before you play. Remember, violating local laws by engaging in fraudulent gambling activities can result in thousands of dollars in fines or even jail terms.
You can ascertain the legal status of online gambling in your state by simply visiting the state’s gaming department and division. States that currently regulate online gambling activities will usually provide up-to-date licensing information of all online casino operators on their websites. Alternatively, you can find out the status of online gambling in your state by checking our casino reviews – so follow our site to see the latest insights and analysis.
Another easier way to determine if an online casino is fully licensed and regulated in your state is to check for its licensing details at the bottom of its homepage. A legal casino in the US will have a valid Gaming regulator seal that shows that it is licensed and regulated by a trusted organization – and that its games are fair. Make sure to look for state regulator logos as well because online casinos are only legitimate if they’re licensed and regulated in the state where they operate.
Future Bets: Trends and Changes in Online Gambling
Online gambling in the US is growing quickly as more and more states continue passing laws to capitalize on revenue from gambling, which hit a record $59.84 billion in 2023. At the time of this writing, six states have already legalized online casino gambling. Still, many states are earmarked for legalization.
Rhode Island, for example, will soon be joining the party sometime in the first quarter of 2024. In June 2023, Rhode Island’s Governor Dan McKee signed the iGaming Bills HB6348/SB948 into law, permitting online slots and table games to launch in the Ocean State as early as March 1.
The other likely candidate for legal online casino gaming is New York. The bill to legalize online casinos in the state was reintroduced by Senator Joe Addabbo at the beginning of the state’s new legislative session and has garnered enough support to push through. Other states where online casino legislation has been proposed are Illinois, Kentucky, Louisiana, Massachusetts, and New Hampshire.
Still, online gambling in the US has a long way to go. This is because, although the Department of Justice issued an opinion in 2011 indicating that the Wire Act only applied to sports betting, this opinion was reversed in 2018 when it issued a new directive stating that the act applies to all forms of online gambling. This means the Wire Act is still a subject of contention, with some states arguing that the law is outdated and no longer mirrors the changing landscape of online gaming.
Then again, outdated or not, the law is the law. The Wire Act remains in force to date and law enforcers still use it to prosecute illegal online gambling activities. Nevertheless, many states still offer some form of online gambling to their residents.
Safe Bets: Ensuring Legal and Secure Online Gambling
Many offshore gambling operators allow US online betting. However, since these online casinos are not regulated, there are no legal protections in place for players. Furthermore, a player using an unregulated gambling site in any state is technically breaking the law.
Therefore, it’s a good idea to play casino games only at regulated gambling sites. As stated earlier, you can find out if an online casino is regulated by checking for its licensing information at the bottom of its homepage. A legal US online casino will have a seal from a recognized gaming regulator.
Also, the casino should clearly show which states it is legal in, as not all US states currently allow online gaming. It’s also worth choosing reputable brand names that are associated with land-based casinos. This will give you some more peace of mind knowing you’re in safe hands.
Wrapping Up the Bet: Key Takeaways for Legal Online Gambling
As with most parts of the world, the US gambling laws are ever-evolving. Gambling in the country has gone from legal to illegal and back to legal several times. The laws are certainly poised to keep changing going into the future. That’s why it’s always advisable to stay abreast with your state’s gambling laws in this rapidly evolving field.
What’s more, if you’re engaged in the online gambling industry in some way, be it as a player, service provider, or business owner, always strive to be the ambassador of responsible and legal gambling. That’s the only way to enjoy gambling while remaining within the confines of law.
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