A Review of Gambling Legislation Within America

The world is enjoying a digital revolution. And one of the biggest breakthroughs across the planet has been unleashing a pent-up demand for playing games of chance on the internet.

Suddenly the operators of online casinos and eSports sites have found that millions of players had been eagerly waiting for a chance to enjoy their services.

As soon as remote access devices like smartphones and pads become widely available and access to wifi and phone services became common, there was a massive boom in online gaming.

Billions of dollars are now changing hands in most countries as players are enjoying a new freedom to play whenever and wherever they want.

From a quick game of poker on the train to work to a leisurely session playing slots on the sofa at home, the gaming experience has become a part of the lives of players all over the world.

But for once, the USA isn’t leading the way at the front of this technological breakthough. The complex legal structure of America and its federal system means that there is still a huge range of different restrictions and barriers to the gambling.

The US gambling maze

Negotiating this complex maze of legislation is not easy. The trend towards liberalising the rules or installing more restrictions is hard to trace across the different states.

One state’s attitudes to gaming can be influenced by many factors, including public opinion, state revenues and how gaming is thought to influence existing local industries.

Online sports betting is now more available than ever before. More online casino games are now available too.

One example is the legalisation of sports betting in the states of New York, South Dakota and Maryland in 2021.

But for every step in one direction it often seems there’s one the other way. For example Utah and Hawaii have banned all forms of legal gambling since 2019.

That’s why it’s hard for the online casino industry to operate in the US. It’s so hard to work out what the nation as a whole thinks of internet games of chance.

It seems that the politicians in each state of the US consider their own situation is unique and they should take their own decision about relaxing or restricting gaming legislation.

 

Here is a broad overview of the attitude to gaming across the different states of America:

  1. Physical casino gambling

This is currently fully legal in 24 states. These include the well-known ones of Nevada, New Jersey, Pennsylvania and Mississippi.

Some other states do allow limited forms of casino gaming, like slot machines. Others only allow table games like blackjack and poker.

Many states, however, allow no form of casino gaming at all.

  1. Online casinos

Again, this varies from state to state. Around ten states currently allow some form of online gambling.

The actual games allowed varies. Some permit sports betting, others a particular selection of casino games.

  1. Sports betting

Back in 2018 the Supureme Court ruled against a blanket ban on sports betting. It meant each state could make its own laws about it.

Since then around 30 states have legalised sports betting.

  1. Lotteries

Lotteries on the other hand are now legal in most states, although coincidentally they are also usually run by the state government itself.

A few states have allowed lotteries that cross-state borders though, like the Powerball and Meg Millions lotteries.

  1. Fantasy sports

Even the playful category of fantasy sports is only legal in some states. Some have declared it illegal, others are undecided.

Note that these are the rules at the time of writing this – they are under debate in many states and can change quickly.

If you are uncertain about the rules in your state, it’s best to check!

Tax revenues

One factor that should be added to the debate about gambling legislation is the enormous benefits to public finance that can be gained by legalisation.

States that have legalised gaming have found the taxes raised can substantially boost the public purse. For example in 2020 New Jersey benefited from more than $50 million contributed from taxes from sports betting.

The latest figures show that the US casino industry contributes almost $10 billion in taxes a year ­and it is increasing rapidly as online revenues soar.

Industry experts are undecided about what the future holds. The rest of the world has shown there is a great demand for playing entertaining games of chance online.

It is clear that could raise enormous revenues for American states. Yet there is clearly resistance to gaming from many politicians in state legislatures.

If it was a hand of poker and we had to gamble on what the future holds, ­we’d put all our chips on the rules being increasingly relaxed across the US. But don’t bet on it!