Have you ever wondered whether gambling is legal in North America? Gambling laws are vital for those involved in gaming operations like casinos – online and land-based – as well as for the average individual that plans or desires to launch a betting pool at their office or among their friends. It is also essential to know the laws about gambling and regarding the legality on the Internet in places like Canada and North America in general.
Here’s what you need to know about gambling laws and regulations in North America and countries like Canada, the USA, Mexico etc.
A brief history of gambling laws in North America
The remarkable history of gaming itself heavily influences American gambling laws. The first game of chance hit the American colonies with the first settlers. During this period, the attitude toward gambling varied from one community to another, though no large-scale restrictions were practiced.
The American colonies used lotteries to help boost revenues and improve or establish hundreds of secondary schools and dozens of universities in the 18th and 19th centuries. It stirred many issues, which fueled tensions between England and the colonies before the American revolution. One of the first regulations on gambling was the 1769 restriction on lotteries stipulated by the British crown.
Gambling spread and later diversified as America grew. State and federal levels continued using lotteries. Private gambling establishments slowly developed in several communities. The lower Mississippi river valley was a hotbed of numerous gambling activities. New Orleans took the trophy of becoming North America’s most prominent gambling center.
But there was a backlash against gambling which gained lots of momentum during the mid-19th century. Lotteries – and other gambling forms – made a brief return during post-civil war reconstruction efforts. The California gold rush practically turned San Francisco into a famous gambling city.
Gambling laws and regulations in North America
Gambling is legitimate or legal under the United States federal law. However, a few significant restrictions exist on online and interstate gambling. Every State is free to prohibit or regulate gambling activities within its borders. Nearly all states allow different forms of gambling, including state-run lotteries.
According to federal law, there is a leeway for Native American Trust Land to be used for gambling activities. However, there must be an agreement between the Tribal Government and the State under the Indian Gaming Regulatory Act of 1988.
Casino-style gambling is legal statewide in Louisiana and Nevada, the only states with such privileges. However, state and local governments can impose zoning and licensing restrictions.
But online gambling is somewhat more strictly regulated. The Federal Wire Act of 1961 explicitly outlawed interstate betting on sports. However, the Act never addressed other gambling forms. Even the Unlawful Internet Gambling Enforcement Act of 2006 did not outrightly forbid online gambling. It only outlawed the financial transactions that involved online gaming services.
As a result, online gaming moved offshore, and many foreign providers ignored American laws. However, online gambling is legal – in some form – in the following US states:
- Nevada
- New Jersey
- West Virginia
- Iowa
- Mississippi
- Pennsylvania
- Rhode Island
- Michigan
- Delaware
The states highlighted below are still considering the laws that would legalize gambling in one form or the other:
- New York
- Florida
- North Carolina
- Tennessee
- California
- Massachusetts
- New Hampshire
Gambling laws in Mexico
Betting websites, lottery sites, and real money casinos are regulated in Mexico. This implies that Mexicans can wager online without going against the law. Nevertheless, gambling is not yet fully legal in Mexico.
Gambling laws and regulations in Canada
Canada’s federal Criminal code generally prohibits every form of gambling activity or gaming. However, according to Section 207 of Canada’s criminal code, there is an exception for provincial governments permitted or allowed to conduct and manage gaming activities within their provinces.
Provincial governments have a few restrictions on their right to manage gambling activities. For instance, horse racing and wagering on horse races are uniquely addressed in the code. Provinces are typically prohibited from entering the arena.
Another notable restriction is that no one – including provincial governments – is permitted to take bets on single games. They can only offer parlay betting, though this was eventually scrapped in 2021.
Most provinces have established separate government entities as a response to being granted the absolute right to carry out and manage gambling activities. For instance, the Ontario lottery and gaming corporation was established in Ontario.
In contrast, the British Columbia lottery corporation was founded in British Columbia. As well, Loto-Quebec is based in Quebec.
Gambling regulations in North America, Canada, Mexico, etc., may be a few years behind other places; however, the wheels are surely turning as more and more states and nations consider legal options for bettors to wager online.
