Online gambling laws in the US are somewhat confusing. This is mostly because of the way the federal government implements laws to prevent people playing at online casinos overseas i.e., stop US dollars flowing out of the country to companies that do not pay US tax.
On top of this, the government also implements these laws to protect US consumers from rogue and dishonest casinos. However, there are new state-by-state legislations that give players within the state the chance to join an online casino while these laws also allow US gambling businesses to open online casinos.
In this guide we will explain how new state-by-state online casino laws in the US allow businesses to operate an online gambling website and players in their respective states sign up. By doing this, you will learn how to gamble legally in the US. You can also learn how to pick legal online gambling sites in the US explained here by oceanalaw.com.
Which laws currently prevent online gambling in the US?
Currently, federal laws in the US forbid financial institutions in the country from approving transactions in US dollars or from US bank accounts when that transaction is being used to fund online casino gambling. The laws also prevent any person or company in the country from opening an online casino business without a federal or state license.
Contrary to popular belief, there is no law that says gambling online is illegal, but as banks can face huge fines for allowing these gambling transactions to go through, it is nearly impossible for US citizens to gamble online.
Which US laws allow online gambling businesses and players to gamble online?
New state laws are overriding the federal financial laws that make it so difficult for US citizens to gamble online. The same state laws are also giving online gambling companies the chance to open a gambling business in the country. Big brand names like Caesars, BetMGM, 888 Casino, BetRivers, and more have taken full advantage of these new state laws to offer online gambling services. Even Disney is looking to make online casino gambling deals.
- State Legislation: Firstly, an online casino can only operate in a state where there is a legal framework in place. Then, only players in that state can gamble at these online casinos. For example, New Jersey has long had online gambling through the passage of bill A2578. It means land-based casinos can apply for an online casino license as well as partner with online casino/gambling brands to offer iGaming services to New Jersey citizens.
- Gambling businesses: For an online casino to operate in a state, it must partner with a land-based online casino, then pay for an application to the state’s assigned gambling authority. For instance, in the Garden State this is the New Jersey Division of Gaming Enforcement.
- Casino Players: As long as players sign up for an online casino account at an online casino that is partnered with a land-based casino approved to operate, then banking transactions will be approved. The bank will already know that the casino brand is legal, so you can deposit using US Dollars. Note: Some US banks are still refusing some transactions, but most will approve your deposit request.
Now you may also be tempted to play at a cryptocurrency casino. Technically, virtual currencies are not considered legal tender or fiat. Therefore, if you have a crypto wallet and transfer to a non-US based wallet, you could gamble online. That said, it is entirely at your own risk because you will not be protected under US consumer and privacy rights laws.
Which states can I gamble at online casinos legally?
Now you are familiar with the way the laws pertaining to online gambling work in the US, the next step is to ascertain whether your state offers legal online casinos. At this time there are only 6 states that have legal frameworks in place that give you access to online casinos that offer video slots, poker, live casino games such as live blackjack, live baccarat, live roulette and more.
- New Jersey
- Delaware
- Pennsylvania
- Michigan
- West Virginia
- Connecticut
Online gambling in the US cones with very different online gambling laws in Europe. If you are in any of these states, then you will find online casinos that will allow you to deposit using your US bank account. On top of this, these casinos are fully licensed by their corresponding state governments via approved licensing authorities. Now if you were wonder why we didn’t include Nevada here, that’s because the state only licenses online sports betting and poker at this time with no casino framework in place as of yet. There are also plenty of other states thrashing out new legislation to legalize online casinos via a new state licensing authority online. However, this will be a slow process, and some states have already rejected proposals to bring state licensed casinos online.
