The formal statement of the NCSL begins: “The National Conference of State Legislatures (NCSL) believes the federal government must respect the sovereignty of states to allow or to prohibit. The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) is United States legislation regulating online gambling. It was added as Title VIII to the SAFE Port Act (found at 31 U.S.C. §§ 5361 – 5367) which otherwise regulated port security.

• Online Gambling Federal Law
• Federal Law Online Gambling
• Federal Law Online Sports Betting
• Federal Law And Online Gambling

Internet gambling has become one of the biggest industries in the world. The
United State has a vast complex market of companies competing to gain customers
and have the best win opportunities available. This page is designed to give you
the information you need to know about the laws that govern these sites and how
these laws affect your ability to play.

The information on this site is for informational purposes only. We’re not
lawyers and don’t claim to be experts in gambling laws. We’re giving you an
overview of the federal and state laws that apply to online gambling so you can
be informed before you step into the world of online gambling.

The United States is famous for enacting laws for just about every single
industry and having these laws redacted, changed, and renewed several times over
the years. It’s important that you know the most up to date information if you
want to be a member of the ever growing world of online gambling.

The federal government isn’t the only governing body that’s able to make laws
in regards to the online gambling industry. Each state has its own laws that
allow, prohibit, or restrict gambling on land and online. Before you try to
start gambling online you need to make sure its legal to do so within the state
you live.

The laws in each state differ and can at times be confusing, as can those
from the federal government. Most of these laws are written by people who know
little to nothing about the industry which can cause problems with the
enforcement of the laws. The laws tend to be vague and leave too much room for
interpretation which can give judges and prosecutors the ability to go on
crusades based on their feelings on the subject.

As you go through this page you can familiarize yourself with a generous
overview of both state and federal laws. The overview includes possible
consequences of breaking these laws and where online gambling is allowed and
with what restriction. We hope this page gives you all the information you need
to successfully navigate the online gambling industry.

United States Online Gambling

Federal Laws

From the first emergence of online gambling those in the federal government
thought it necessary to enact laws that any company, whether land based or
digital, must follow. Some of the laws that affect the online industry were
enacted before the emergence of the online world, but these new gambling forms
still have to follow these laws. Below we’re going to give you an overview of
the laws that apply to the online gaming industry.

Wire Act of 1961

The first thing you may notice is the date on this law. Yes, it was passed
into law in 1961, which is well before the invention of the internet and even
the thought of online gambling. Even with this being the case, this law has been
used many times over the years to make rulings against online gambling.

Wire Act of 1961 was initially used to work with other antiracketeering laws such as the
Travel Act and others. The law was obviously not drawn up in regards to the
online gambling industry but because of the way it was written it still is
applicable in governing the industry.

The first purpose of the Wire Act was to help the states and territories of
the United States enforce their laws on gambling and bookmaking and to suppress
the gambling in organized events. The law has one section that allows it to be
used by law enforcement to apply to the newer industry of online gambling.

“Whoever being engaged in the business of betting or wagering knowingly uses
a wire communication facility for the transmission in interstate or foreign
commerce of bets or wagers or information assisting in the placing of bets or
wagers on any sporting event or contest, or for the transmission of a wire
communication which entitles the recipient to receive money or credit as a
result of bets or wagers, or for information assisting in the placing of bets or
wagers, shall be fined under this title or imprisoned not more than two years,
or both.”

In this section of the law when it says that anyone who places a wager or a
bet using wire communications allows for any law enforcement agency on either
the state or federal level to use this law against an online gambling site.
However in 2011, there was a change to the law that changed everything.

The legal opinion that was released by the Department of Justice in 2011
gives the states more authority in deciding how they wanted to handle the online
gambling industry. The opinion decriminalized certain forms of gambling that in
the past had been illegal. With this change the DOJ would no longer seek
criminal charges against those who play online versions of casino games such as
poker, slot games, bingo, and lottery options. Even with this change, online
sports betting was not included and remained illegal.

The change has not completely changed the world of online gambling. It
doesn’t change the fact that a company the provides online gambling options to
restrict its players by state if the state they live in has not legalized online
gambling then they cannot play.

It also hasn’t helped those states that have legalized online gambling to
operate without issue. Some of the other laws regarding online gambling still
create problems for those states that have legalized the industry.

In recent years there has been a push to re-enact the original Wire Act of
1961. This new bill is called the Restoration of America’s Wire Act and was
introduced to Congress in 2014 by Senator Lindsey Graham and Jason Chaffetz.
This bill is designed to restore the Wire Act to its original state where all
forms of online gambling would be illegal.

If RAWA was to pass and become law it would essentially bring to an end the
entire industry of online gambling. Since it would reestablish that most forms
of gambling would be illegal it would no longer matter if a state had legalized
it or not. The bill does have some exceptions, but many of the most popular
forms would no longer be available in the online gaming world.

Interstate Transportation of Wagering Paraphernalia Act

Another 1961 law that was passed by the US government with the intent to
close the gaps for the gambling industry came in the form of the
Interstate
Transportation of Wagering Paraphernalia Act. This act made it illegal to
transport any record, paraphernalia, ticket, certificate, and bill, slip token,
paper, writing, or any other device used, to be used in book making, or wagering
pools for sports betting.

This law, much like the Federal Wire Act, was enacted way before the time of
online betting but is still very much a part of the business. This law makes it
illegal to basically send anything over the internet, through the mail, or any
other means of transfer that can or will be used to make sports bets.

The language used in the writing of the act is so broad that with the
advancements in technology it can still be used as a means to put a stop to
online sports betting. Because words like paraphernalia, paper, and device are
used it’s up to the courts to determine if the method used falls under any of
these classifications. More than likely any wire transfer or online transaction
can and will be viewed under one of these categories

All of the laws we’ve just gone over can be found in their entirety on the
federal regulations web site. We’ve given you the summary of the laws with the
intent to inform you of laws that always take precedent over state law.
Regardless of how constitutional these laws may seem or not seem they’re still
currently in effect and must be obeyed unless you want to find yourself sitting
in federal prison.

UIGEA

The next law we want to talk about is the
Unlawful
Internet Gambling Act. This law is different from the Wire Act and many
others because it doesn’t target the gamblers playing the games but the
companies that supply the games and companies that process the payments to and
from the online gaming site.

This law was able to pass both the house and the senate easily because it was
attached to other laws that were widely supported. If this hadn’t been the case
this law might not have been able to make it into law.

This law doesn’t prohibit players from playing the games. The law was drafted
with the intent to stop money laundering, fraud, and other financial crimes.

This law prohibits online gambling companies from accepting payments from
someone that violates federal or state laws. It regulates how payments are made
for online gambling transactions. This law basically makes it illegal for a
company to accept payment from banks or credit card companies. This causes
issues for not just the online companies but for the players as well.

When this law was signed into law it caused a mass exit from the US market of
gambling sites and payment processors. This law made it nearly impossible for US
players to find an online gambling site that would accept them and allow them to
play. This is still an issue with most brands being offshore companies that
won’t accept US players.

In the years since the passing of this law the market has stabilized and the
use of prepaid accounts, prepaid credit cards, and some digital wallet companies
have given US players the ability to start playing again.

One good thing that has come out of this law being passed is that the sites
that offer online gambling are safer and more reliable for the customers of the
site as long as they are operated within the United States. You must remember
that this law has no effect on offshore companies that accept US players so be
careful what site you choose to play on.

Professional and Amateur Sports Protection Act

This laws basic purpose is to completely ban online sports betting. Known as the PASPA,
this law works with the Federal Wire Act to make it illegal for anyone in the
United States to place bets on sporting events like football, basketball, and
baseball via the internet, or any other wire transfer methods.

Some sporting events however are legal to bet on through the internet. Sports
like pari-mutuel horse racing and dog racing are some that are exempt from the
law.

When the law was first voted in the U.S. government included a grace period
for states that had been allowing online sports betting to alter their sports
betting so that it could continue without violating the law. This grace period
was primarily for New Jersey, who in turn didn’t take advantage of this
opportunity and has since filed a law suit stating the law is inherently
unconstitutional.

Some states however do have sports lotteries which don’t fall under the
guidelines of the PASPA law and are still legal for online betting. Those states
include Delaware, Montana, and Oregon. The law also doesn’t prohibit US
residents from participating in sports betting with an offshore online casino.

Demand is growing to have this law repealed, but even if the law is repealed
the use of online means to place bets on sporting events would still be
considered illegal due to the Federal Wire Act. Repealing this bill would only
make it legal for sports betting in land based casinos.

Illegal Gambling Business Act

Illegal Gambling Business Act was
aimed at ending the involvement of organized crime in the gambling business.
This law states that any gambling operation that is in violation of state or
local law that has five or more people conducting its operation, and remains in
continuous operation for 30 days or makes more than $2,000 in revenue in a days’
time can be prosecuted.

This law doesn’t include the bettor as a person that can be found guilty
under this law, however anyone who works for the gambling business itself can
be. This means that anyone from the owner of the business down to the runners
can fall under this laws prevue.

This law was written with the intent to be extremely vague giving the
government the ability to bend the rules to enforce the law as they see fit. The
statement about continuous operation allows them to determine how regularly the
so called illegal activities are taking place. It also gives them the ability to
only have to prove the involvement of someone in the illegal operation and not
that they knew the activity involved five or more people or that the five
individuals were involved for the allotted 30 day time period.

State Laws

Each state in the United States has the right to pass and enforce its own
laws. These laws don’t take a higher level of legality than the Federal laws but
most federal laws do defer to the state’s laws to see if they’ve been violated
before the federal law is enforced.

Each state has the ability to prohibit its residents from engaging in any
form of online gambling. Some states allow only certain types of online gambling
while others have completely legalized the industry. We’ve gone through the
states one by one to determine what the laws are and how they can affect your
ability to place bets online. We provide this information for knowledge purposes
only and don’t intend for the information to be used for a legal purpose. We
aren’t lawyers so if you’re having a problem, make sure to get further advice
from a licensed lawyer.

Online Gambling Federal Law

To determine if an act of gambling is a violation to the state laws there are
certain factors used by states. They are the Dominant Factor Test and what
classifies social gambling. Then states must also determine whether the
violation falls under the law as a misdemeanor or a felony level crime and
whether the crime meets requirements to be distinguished as a simple crime or an
aggravated crime.

The Dominant Factor Test is applied to an activity to determine if it
violates state law. This test determines if a gambling activity is based on
chance. If it’s determined that chance outweighs actual skill, more than likely
this violates the state’s laws on gambling. Most states have determined that if
a game has an element of skill that is required to successfully play a game then
it doesn’t violate the law. Not all states use this test, but as you read you
can see which states do and which states don’t.

States also divide gambling up into different categories and usually have an
allowance for social gambling. Determining what social gambling is can be tricky
depending on the state. Generally social gambling is when all those involved in
the gambling are on equal footing. Basically the people working the game can’t
benefit from the game more than a player can.

We’ve also determined the levels of violations in each state so as you read
you can see what states you can play in and what states you can’t.

State Pacts and Developments

States that have legalized online gambling know that to be successful in the
industry that they must have a large pool of players. Since not all states have
regulations on this type of gambling and the legal system can at times be rather
grey when it comes to this industry states must be careful when accepting
players from other states.

Having a pact or other agreement with other states is a great way to legally
offer online gambling to residents from other states. This is becoming a new way
for states to work together to embrace this large industry in the United States.

In recent years more states have started working on legislation to regulate
the use of online casinos and we can only hope that if they decide to legalize
it then they’re willing to work together to make our online gambling industry as
successful as that of other countries.

US Friendly Online Casinos

As we’ve shown you, online gambling is part of a vast grey area in most
states which causes online casinos to become leery of allowing players from the
United States to play at their sites. Over the years the ability for Americans
to play at online casinos that originate outside the US has grown but there are
still a large number that don’t want the hassle.

We decided to include a list of online casinos that accept US players so you
don’t have to look any further than right here to find out what sites readily
accept players from states that allow online gambling.

These sites include:

• Lucky Red Casino
• Real Time Gaming
• Slotland
• Club USA Casino
• Win A Day Casino
• Red Stag Casino
• Ignition Casino
• Makitone Gaming
• Liberty Slots Casino
• Intertops Casino Classic
• Buzzluck Casino
• Jackpot Capital
• Miami Club Casino
• iNetBet
• Intertops Red Casino
• Bovada Casino
• BetSoft
• Slots.lv
• Slotastic
• Lincoln Casino
• All Star Slots
• Grande Vegas
• High Noon Casino
• Aladdins Gold Casino
• Gossip Slots
• Manhattan Slots
• Casino Extreme
• Desert Nights Rival Casino
• Black Lotus Casino
• Drake Casino
• BetChain
• Kudos Casino
• Diamond Reels Casino
• All You Bet Casino
• Cafe Casino
• Vegas Crest Casino
• Sun Palace Casino
• mBitCasino
• Lotus Asia Casino
• Fonecasino
• Lucky Club Casino
• Grand Fortune Casino
• Vegas Casino Online
• Lucky Creek
• Treasure Mile
• Jackpot Wheel Casino
• Mandarin Palace
• Grand Eagle

Conclusion

With this page we intended to help you as an online player to be able to know
for sure if you’re playing legally or if you’re taking a chance of being charged
with a crime in your state.

We included all of the 50 states so that you can easily determine which
states are online gambling friendly states and which ones frown upon the
industry.

You can find everything about the federal laws that have an effect on how the
industry is run and what types of gambling is permitted by the federal
government.

Always remember that we aren’t lawyers so if you think or have any reason to
believe you might be in violation of any laws by joining an online gambling
casino make sure that you contact a lawyer before you join. This way you get
expert legal advice that can tell you for sure if it’s ok to join or not.

We hope you’ve found everything you need on this page including your next
casino to try out. Some of those in our list of casinos are top rated and have
amazing sites to play on so do your research and find one that’s right for you.

This U.S. Federal gambling law prohibits the operation of interstate betting activities in the United States. The Federal Wire Act, also known as the Interstate Wire Act of 1961, specifically made it illegal for illicitly run US-based sports gambling businesses to utilize any form of wire communications to send or accept betting information and wagers from across state lines or foreign US-owned territories.

The Federal Wire Act officially amended Chapter 50 of Title 18 of the United States Code of Laws. The law has since been interpreted by the DOJ to include interstate online communications; hence its effective prohibition of interstate online sports betting in the US. For this reason, it is important that players and operators understand the specific laws concerning gambling implemented in countries they choose to participate and practice gaming-related activities in.

History of the Federal Wire Act

Then-US attorney general Robert F. Kennedy, who was emboldened by the presence of his brother John F. Kennedy as the US president, suggested to Congress passing a law which would prohibit interstate gambling. His suggestion led to a newly crafted bill which was introduced in the US Senate as SB 1656. This bill would be later known as the Federal Wire Act. SB 1656 was included in eight bills presented to Congress that year. The Federal Wire Act as proposed by Robert F. Kennedy would help the US Justice Department effectively slow down the sportsbook activities of criminal organizations operating within the United States and its territories. The Wire Act was signed on September 13^th, 1961 by then-US President John F. Kennedy.

What is the Federal Wire Act?

The Federal Wire Act is a law that was designed to curb the illegal bookmaking activities of organized crime syndicates. Its language included and punished domestic businesses and bookies who accepted bets over the telephone or telegraph. This Act was created to specifically address the ongoing and growing issue of organized interstate racketeering and number-fixing which demonstrated to be profitable to criminal organizations and Mafia families. The Federal Wire Act proved to be successful as it severely damaged the 1960’s era mobsters from generating revenue from illegal bookmaking activities. The Act’s language minimized the mobs reach within the nation and cut their connection from U.S. territories.

What Does the Federal Wire Act Regulate?

The Federal Wire Act regulates the use of wire communication networks by domestic state-based sports betting operations. The Act effectively bans any US-based sportsbooks using wired communications to communicate between states as an attempt to destroy illegal crime networks that profit from game-fixing, racketeering, and wager collecting. While this effectively worked in the 1960’s, the Act was not prepared for the invention of the internet nor capable of foreseeing online gaming markets. A law later on known as PASPA would come to regulate domestic brick and mortar sports betting operations and activities for 25 years before its removal from the U.S. lawbooks.

Does The Federal Wire Act Effectively Prohibit Sports Betting In The US?

The Act gave local state law enforcement more strength to apply stricter punishment to mobsters by imposing longer sentences than previously possible under existing state legislation. The Federal Wire Act cut the flow of wealth provided through illegal bookmaking and number fixing to criminal organizations without effecting casual bettors. The Act was not designed to attack players from the U.S.A. but rather to strike unlicensed gambling services that used wired communicates to collect bets and pay out winnings from and to domestic players, respectively. Therefore, the Federal Wire Act was actually an anti-organized crime law not anti-gambling legislation, as while the law is relevant to gambling it also has nothing to do with gamblers.

It is stated in the Federal Wire Act, those caught in violation “shall be fined or imprisoned for no more than 2 years or both”. This improved the Justice Department’s ability to combat the unlicensed illegal sports betting industry which was at the time run by the Mafia and smaller local bookies. The laws enacted by the U.S. Congress and President Kennedy were known as the 1960’s Interstate Anticrime Acts which empowered the Federal Government to take a more effective role in the fight against organized crime and racketeering. At the time, the Mafia manipulated Labor Unions, shook down businesses, and ran unlicensed gambling rings.

The Act’s language was intended to assist territories and states in enforcing their respective laws on illegal bookmaking. However, as time came to show, the language in the Federal Wire Act could be circumvented by illegal figures through its exclusion of the internet as a wired communication facility. For this reason, in 2001 the Department of Justice under the Bush administration declared the Federal Wire Act of 1961 intended to expand its regulatory prohibition to all forms of US-based online gambling. However, in 2011 the DOJ officially clarified its position that the Federal Wire Act only outlawed US-based intrastate online sports betting operations, and had no application regarding state-regulated online casinos, online sportsbooks, poker sites or other online gambling initiatives allowed by state law.

In 2018, after the repeal of PASPA, the issue of the Federal Wire Act’s relevancy to online sportsbooks was brought into question. It was clarified that the Federal Wire Act only restricted -USbased interstate wagering on sports. Meaning that the Wire Act makes it illegal for any domestic state-regulated online sportsbook to accept bets outside fo their state. This allows state-approved sportsbook the capability to offer wagering online to any bettor residing in or visiting their state without violating the Federal Wire Act.

FAQ’s

DOES THE FEDERAL WIRE ACT AFFECT ONLINE GAMBLING IN THE UNITED STATES?

The Federal Wire Act was once interpreted as federal legislation that could regulate all forms of online gambling, specifically in the 1990’s dot-com era. However, this stance was challenged when the DOJ released a formal opinion on their interpretation of the Federal Wire Act. According to the DOJ’s 2011 statement, the Federal Wire Act only applied to US-based online sports betting and did not apply to casino or poker online gambling nor extend its jurisdiction beyond the United States and its declared territories.

In 2018 following the repeal of PASPA, the Wire Act was once more considered due to the major changes in the US sports betting market. The Wire Act now only restricts interstate online betting, which means that state-regulated online sportsbooks are not permitted to accept bets across state lines or from sources outside of the United States. This is a stark contrast from the law’s previous application which effectively prohibited all US based online sportsbook activity.

DOES THE FEDERAL WIRE ACT MAKE ONLINE SPORTS BETTING ILLEGAL FOR US RESIDENTS?

No. The Federal Wire Act does not criminalize offshore online gambling as it only outlaws interstate wagering through state-regulated online sports betting. For this reason, states are not permitted to accept bets from outside of their state. If an individual state decides to accept out of state wagers, they would immediately face legal actions and injunctions by sports leagues or the federal government for their violation of this law.

DOES THE FEDERAL WIRE ACT APPLY TO OFFSHORE ONLINE SPORTSBOOKS?

No, the Wire Act only has prohibitive jurisdiction concerning betting activities between states within the United States and its territories. Outside of the U.S., governing jurisdictions are free to regulate and license online sportsbooks and offer their betting services to whomever they choose.

The US does not have any federal law on the books that outlaws offshore gambling, therefore, US players are free to access offshore betting destinations. However, the states of Washington and Connecticut do have state laws in place to prohibit residents from engaging in any type of online betting including both US based and/or offshore gambling.

ARE THERE PENALTIES FOR US RESIDENTS WHO BET ON SPORTS ONLINE?

Under the Federal Wire Act, it is only a crime to accept bets outside of a state’s jurisdiction or operate a sportsbook on US soil that is unregulated and unlicensed. However, nowhere in the law does it place prohibitions on bettors from the U.S.A. wagering on sports at legally licensed online sportsbooks.

ARE THERE ANY LEGISLATIVE PUSHES TO REWRITE THE FEDERAL WIRE ACT?

Before 2011, the DOJ improperly used the Federal Wire Act to prosecute countless individuals and businesses under the general interpretation of the Wire Act. Since the rise of the internet, the anti-gambling leaning members of Congress intended to use the Wire Act to rid the Internet of casino-style gambling.

In 1996, then-US Senator of Arizona Jon Kyl introduced a bill called the Crime Prevention Act that included an amendment to the Wire Act to encompass the Internet under its prohibitive jurisdiction.

Federal Law Online Gambling

In 1996, then-US Representative Tim Johnson of South Dakota introduced his own bill to take a jab at online gambling called the Computer Gambling Prevention Act.

In 1997, Senator Jon Kyl tried once more to introduce another anti-internet gaming legislation by the name of the Internet Gambling Prohibition Act which would make all contests, sports games, or games of chance classified as a bet or wager thus illegalizing its online forms.

In 1999, after his previous attempt in 1997, Senator Jon Kyl tried to reintroduce the same legislation.

In 2002, then-US Representative Bob Goodlatte of Virginia introduced his own prohibitive bill called the Combating Illegal Gambling Reform and Modernization Act which would classify bets and wagers to include all gambling activities and games of chance.

All of these attempts to pass anti-internet gambling legislation failed and due to the DOJ’s clarification regarding the application of the Federal Wire Act, few states and government entities were able to prosecute legitimate online businesses and social bettors.

However, in the past few years a new bill has gained momentum and is aimed to outlaw most forms of online gaming. In 2014, Sheldon Adelson the world’s wealthiest casino owner who has a great distaste for regulated online gambling is the primary supporter and push behind this bill.

Federal Law Online Sports Betting

Federal Law And Online Gambling

RAWA also known as the Restoration of America’s Wire Act which would ban domestically regulated online gambling and immediately criminalize and shut down multiple state-regulated online gaming industries across the US. RAWA could effectively ban online lottery sales, online poker, online sportsbooks, online casinos and online bingo, exemptions include online horse race wagering and daily fantasy sports contests.