There’s no U.S. federal law against Gaming online
There is no U.S. national law against gaming online. At the federal level, betting on the internet is perfectly legal, because of the lack of a law against it. It’s possible to run afoul of state law (especially in extremely conservative countries ), however there prosecution is very uncommon, and penalties are usually slight.
U.S. Attorney Catherine Hanaway confessed in a House hearing that just placing wagers online doesn’t violate federal law. No American has ever been arrested, indicted, or prosecuted by the feds for gaming online, because there’s no law against it. If online gaming were illegal I wouldn’t be running his website for nineteen years, as an American citizen, living in the U.S., with my actual name. And I sometimes gamble online, too, and I admit that publicly, like I’m doing right now.
This may be confusing as the other outlets erroneously noted that Congress banned online gaming in 2006. Those reports are simply erroneous. The 2006 law makes it illegal for banks to move gambling money when the bets are already illegal (like from a country law), but does not make it illegal for players to create stakes. The law simply does not create or expand any ban on gaming itself. In fact, the legislation states quite clearly,”No provision of this subchapter shall be construed as altering, limiting, or expanding any Federal or State legislation or Tribal-State compact banning, permitting, or regulating gambling within the USA.” You can see for yourself by checking out the full text of the law.
While you don’t break any national laws from putting bets online, it’s not legal to run a gambling operation (i.e., to take bets), but in those few countries where it is explicitly legal and the operator is accredited. So don’t believe you can start an internet casino or run Facebook raffles.
And yes, the FBI published a frightening warning online in which they claimed that placing bets online is against the law. In summary, they lied, and the DoJ finally reversed that place anyway. (more on that)
States where online gambling is explicitly legal
Not many states have specific laws against online gaming, although many have laws against gambling generally, which apply equally to offline and online gaming. A little handful of states have explicitly legalized online gaming, provided that you perform one of the handful of approved online casinos. In some countries, only certain kinds of gaming might be legal (e.g., poker). The countries which have legalized some Kind of Internet gambling are:
Delaware became the first nation to legalize online gaming, in June 2012, and the next to launch (Nov. 26, 2013). (USA Today, Delaware Online, Casino.org)
Nevada became the first nation to legalize online gambling (nicely, poker at least), on Feb. 21, 2013 (CBS) and launch on April 30. (LVRJ)
New Jersey became the third state to legalize online gaming (poker casino), signed into law in February 2013, and launch on Nov. 25th. (NJ Poker Online)
Be aware that Bovada will not accept players from these countries, nor will they take players out of Maryland or New York.
The District of Colmbia became the first jurisdiction to legalize online gaming in the U.S., in April 2011. However, the measure was repealed in February 2012 until it became lively. (NY Times)
State offenses of gaming are often misdemeanors
Even when countries don’t allow players to gamble, the penalties are almost always light. The only nations where simple gaming is a felony are the two Washingtons: Washington, DC, and Washington state. (source) In many states easy gaming is just a misdemeanor, and in Arkansas and Colorado it’s a simple petty crime, like a traffic ticket. (source)
States with an Internet gaming prohibition
Even countries that ban gambling generally usually do not have a particular ban on online gambling. If it’s against the law to bet in your state, that applies offline and online, even if the law does not mention online. But a couple of countries do specifically outlaw online gaming. Those states are:
Nevada (go figure)
Source: Gambling Law U.S.
Players convicted of violating State laws I know of only two instances where a participant ran afoul of state legislation (in exceptionally conservative nations ), both of whom were billed under their nation’s overall anti-gambling legislation, not any specific anti-online-gambling law:
North Dakota. Jeffrey Trauman paid a $500 fine on what was likely over $100,000 in online sports bet winnings, in 2003. (Betting & the Law)
Oklahoma. Online sports bettor Roland Benavides was billed in 2011 and at 2012 received a deferred sentence (meaning that when he does not violate the conditions of his probation, he will likely face no jail time). (News OK)
Kentucky seized domain names A Kentucky judge agreed to let Kentucky capture 141 gambling-related domain names, on the spurious grounds that a domain name comprised a”gambling device” under state law. But even if it were clear that gaming domains violated Kentucky law, the seizure was still absurd, because by that logic any country could grab any domain anywhere in the world when the website happened to violate its own local law. In any event, as FlushDraw said,”Only a small number of US-based registrars complied, and the seizures themselves were left somewhat moot when nearly all of the affected domains jumped to non-US registrar services and ceased using”.com” domains.”
The Kentucky Court of Appeals quickly overturned the seizure action, but the State appealed. I couldn’t find any updates between 2014-2018 (EFF 2008, KY appealed in 2009, 2014 ruling)
Taking bets is prohibited It’s always been contrary to national law to take sports bets over the Web (to not create them). In other words, you can not establish a site and accept sports bets out of the public. The law that prohibits this is called the Wire Act. For many years the feds said that the Wire Act applied to accepting casino and poker bets too. Then in 2011 they reversed themselves and said the Wire Act applied only to sports. (Forbes) Subsequently in 2019 they reversed themselves again and returned to the former position that the Wire Act indeed applies to taking casino and poker bets too. (origin ) Though again, placing bets stays perfectly legal under federal law. The challenge would be finding a reputable place to perform . Due to the legal problems, there are not many operators operating the whole U.S., and many of those which do are kind of questionable. That’s why I promote only Bovada on this website, since they’re the best one for U.S. players.
States can now offer sports gambling In May 2018, the Supreme Court overturned a law that illegal sports betting in most countries but Nevada. This allows individual countries to legalize sports gambling if they choose to do so. On the other hand, the court’s ruling doesn’t speak to the Wire Act, so online sportsbooks still violate federal law (for the operator, not the participant ). (Forbes)
Read more: usvirugby.org