Online Gambling Laws In The U.S. - Is Online Gambling Illegal?

Online Gambling Laws To Know

By the time you are done reading these pages, there are three laws that we want you to remember. Repeat these. The Unlawful Internet Gambling Enforcement Act, the Wire Act, and the Professional and Amateur Sports Protection Act. Below, we get into these by explaining what they are, who they affect, and why they were put into place.

Unlawful Internet Gambling Enforcement Act of 2006

The UIGEA affect all three different types of online gambling we mentioned in the introduction. It is the only one of the three laws to do so. As such, it has the potential to affect a variety of online gambling sites, and actually has been the cause for some of the biggest betting sites in the United States to be shut down.

So what is it? An attachment to the Safe Port Act in 2006, the UIGEA prohibits businesses from accepting payments for the purpose of placing a wager through the use of the Internet. Actually, the Act passed on the final day prior to Congress adjourning and without a single person in the Senate reading the finalized piece of legislation. As such, the funding of any known gambling entity was effectively made illegal under this piece of legislation. And while this definitely affects the users of online gambling sites in that they have trouble making deposits, it's only illegal for banks to process financial transfers with payment processors that are known for gambling transactions.

The Wire Act Of 1961

The Wire Act actually dates all the way back the Kennedy Administration, with its aim to combat against organized crime and the way in which it was being funded. Interstate sports betting was perceived to be a big problem, so the way in which bets and wagers were made came under fire by the government. The Wire Act made it illegal to use any form of "wire" communication to place or accept a bet which meant you couldn't phone a wager in to any bookie, legal or not, across state lines.

As gambling grew and the advent of online gambling came about, prosecutors expanded this law to cover more than sports wagering to cover all forms. Think, there was no way possible to play a casino game for real money from another state back in 1961 so the only way to apply this law to all of online gambling was to take liberties with it's meaning. However, a recent ruling in December of 2011 by the Department of Justice made it so that only sports betting was under the umbrella of these terms which is how the law was originally intended.

Professional And Amateur Sports Protection Act

The PASPA was formulated and passed back in 1992, and was the first explicit stance against all sports betting in the United States at the federal level. PASPA set the guidelines for what constituted sports betting, and established states where it would be legal. However, states which had a 10-year history with legally licensed casinos were able to apply for immunity up to one year after the law went into effect (January, 1993).

Today, there continue to be states, like New Jersey, which are fighting against the laws of sports betting. It seems to be only a matter of time before this law is repealed thus opening up the possibility for a sportsbook in all states that have regulated land-based casinos just as you would find in Vegas. For now though, all land-based legal sports betting takes place in Nevada and Delaware although Montana and Oregon are also included in the group but decide not to allow it within the state.

Internet Gambling Regulation, Consumer Protection & Enforcement Act of 2013

This is a proposed law by New York Representative Peter King that would provide for regulation of Internet gambling in the United States. This is unlike the state-by-state developments like we've been seeing recently, but this still must make it through Congress. Other attempts have been made at similar bills failed on the floor with the most recent campaign being Barney Frank's attempt in 2007. Stay tunes for updates on the Internet Gambling Regulation, Consumer Protection & Enforcement Act (that's a mouthful) here at LegalOnlineGamblingSites.com.

State Laws And Gambling Ages

While we discussed the three main federal laws, it's also important to note that there are many state gambling laws, which vary depending on where you reside. This includes most importantly the legal age to gamble. Legal gambling ages will be different from each state, typically either 21 or 18. But it's important to know the legal age to gamble online in your state. This is because most online gambling sites require players to be at least 18. However, if your state says you have to be 21, you must abide by that.

Other recent developments at the state level, specifically in Nevada, Delaware and New Jersey, have actually made online gambling legal in those states when done at state-regulated gambling websites. Legislation was passed within these states' legislature to allow for the regulation of online gambling sites back in early 2013.

In Nevada, Governor Brian Sandoval signed their state's bill that legalizes forms of online gaming which can be regulated by the state. Officially known as Assembly Bill 114, it allows Nevada to legalize games such as online poker and casino gaming without having to comply with the federal legislation. This bill also stipulates that interstate agreements can take place between Nevada and those states that are looking at going down a similar road. As it stands, only those living in Nevada, or visiting Nevada are able to play.

In New Jersey, Governor Chris Christie signed legislation that allows for a 10-year window of regulated web-based gambling from the 12 casinos operating in Atlantic City should they choose to apply for licensing. Initially, this is thought to apply just to casino games but we could eventually see this branch out into online poker, bingo games and perhaps one day, online sports wagering.

As of the middle of 2013, Nevada is the only state to have any form of regulated online gambling in-play. Selection is still very limited but you can keep checking back here, as well as our individual pages about the gambling laws in Nevada and New Jersey if you want to stay aprised of the situation.