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The Legal Landscape of Online Casino States in the USA

You can count them on two hands. Six states. Six states currently allow online casinos in the United States. That seems like such a small number, right?

Well, it is!  However, the good news is that laws and opinions are changing fast.

  • You might be asking what states have legalized online casinos?
  • What states are considering online casinos?
  • How do online casinos operate?

I have the answers for you in this article.

State-by-State Guide to Online Casinos

Navigating the online casino landscape in the USA is like going on an internet road trip across each individual state, each with its unique legal fabric. What’s legal in one state won’t necessarily be legal in another!

States Where Online Casino Gaming is Legal

The legal online casino (that’s real money casino games) landscape is constantly being redrawn as states recognize the economic and entertainment value these platforms offer.

Studies we have run at TrustnPlay.com have shown that gaming, both online and land-based casinos, can be a great tax boost for state economies.

Of course, though, some states have been quicker to draw than others.

States that allow online casino gaming include:

States Where Online Casino Gaming Is Not Legal

While some states have embraced the online casino revolution, others have maintained a more conservative stance on letting players wager their bets online.

What About Retail Gambling?

Navigating through the laws affecting brick-and-mortar casinos (know the nickname: retail gambling) and sportsbooks can feel like playing a game of legal Twister — it’s all about placing your bets in the right spots.

Let’s remember that when it comes to gambling laws in the USA, each state embraces its own set of laws applied to in-person, called “retail” casinos, and casinos located on tribal lands, called “tribal” casinos.

State-by-State Retail Gambling Laws
StateRetailTribalSports betting
 Alabama No Yes No
 Alaska No Yes No
 American Samoa No— No
 Arizona No Yes Yes
 Arkansas Yes— Yes
 California No Yes No
 Colorado Yes Yes Yes
 Connecticut No Yes No
 Delaware Yes— Yes
 District of Columbia No— Yes
 Florida No Yes Yes
 Georgia No— No
 Guam No— No
 Hawaii No No No
 Idaho No Yes No
 Illinois Yes— Yes
 Indiana Yes Yes Yes
 Iowa Yes Yes Yes
 Kansas No Yes Yes
 Kentucky No— Yes
 Louisiana Yes Yes Yes
 Maine Yes No Yes
 Maryland Yes— Yes
 Massachusetts Yes Yes Yes
 Michigan Yes Yes Yes
 Minnesota No Yes No
 Mississippi Yes Yes Yes
 Missouri Yes— No
 Montana No Yes Yes
 Nebraska Yes Yes Yes
 Nevada Yes Yes Yes
 New Hampshire No— Yes
 New Jersey Yes— Yes
 New Mexico No Yes Yes
 New York Yes Yes Yes
 North Carolina No Yes Yes
 North Dakota No Yes No
 Northern Mariana Islands Yes— No
 Ohio Yes— Yes
 Oklahoma No Yes No
 Oregon No Yes Yes
 Pennsylvania Yes— Yes
 Puerto Rico Yes— Yes
 Rhode Island Yes No Yes
 South Carolina No No No
 South Dakota Yes Yes Yes
 Tennessee No— Yes
 Texas No Yes No
 U.S. Virgin Islands Yes— No
 Utah No No No
 Vermont No— No
 Virginia Yes No Yes
 Washington Yes Yes Yes
 West Virginia Yes— Yes
 Wisconsin No Yes No
 Wyoming No Yes No

Focus on Popular States: Texas and California

Texas

The Lone Star State stands firm in its traditional approach to gambling, with no current legislation allowing online casino games. In fact, gambling in Texas is outright banned.

In legal language, players break the law if they “play and bet for money or other thing of value at any game played with cards, dice, balls, or any other gambling device.” There have been talks about legalizing online gambling but no firm action yet.

Note: Best sweepstakes casinos, online casinos where no real money is exchanged, are part of a legal gray area. Many Texans who want to gamble online choose to play at a social casino instead.

California

Despite being a hub for innovation and technology in Silicon Valley, online casinos in California have yet to be legalized – seems outrageous considering the state houses the biggest cell phone manufacturer in the world, right?

The conversation around legalizing online poker in California has been ongoing, but as of now, no concrete steps have been taken to legalize online casinos or even card game parlors.

Navigating the Online Casino Map: A Visual Guide

Still confused as to where legal online gambling is allowed in the United States? Refer to this color-coded map of states where online gambling is legal and not legal.

⚠️ Please, dear readers, be patient. We will update this page with a Map really soon.

The Process of Acquiring an Online Casino License

Acquiring a business license to operate as an online casino in the United States is a complex process, involving stringent requirements and thorough procedures to ensure compliance with state and federal laws.

Operators have multiple levels of fiery hoops to jump through to start operations, including:

  1. Understanding State-Specific Regulations: Each state has its own regulatory body and set of rules governing online gambling. For instance, in New Jersey, it’s the Division of Gaming Enforcement (DGE), while in Pennsylvania, it’s the Gaming Control Board. Applicants must work with each state’s control board to gain licensure – and if an online casino wants to allow gamblers in multiple states, multiply that commitment out per state!
  2. Eligibility Assessment: Test factors include financial stability (after all, casinos must be able to pay out when players win!), criminal background checks for company owners, and a proven track record of integrity and ethical behavior. That means no criminal activity in the past.
  3. Application Submission: The application process requires submitting detailed information about the business, including ownership structure, financial statements, business plan, software details, and measures for ensuring responsible gaming.
  4. Software and Systems Audit: The gaming software and systems a casino uses undergoes a rigorous testing process to ensure fairness, randomness, and compliance with technical standards. This often involves third-party testing labs that will issue the company a certificate of completion. Consider it to be the ultimate high school exit exam!
  5. Compliance with Anti-Money Laundering Laws: The casino’s financial office must demonstrate adherence to anti-money laundering (AML) regulations and have systems in place for detecting and reporting suspicious activities.
  6. Licensing Fees and Taxes: The application process involves paying licensing fees and setting up tax accounts adjusted for the large volumes that will enter and exit the casino’s accounts.

Daniel Wallach, a well-known industry attorney we asked about the startup process, noted:

Staying on top of regulatory changes is critical for a new casino, or any casino, for that matter. What’s compliant today might not be tomorrow, given how quickly online gambling laws are evolving. The technology aspect is non-negotiable. Your systems have to be foolproof, fair, and in line with technical standards. Regular audits are a norm in the industry – and financial departments have to constantly toe the line with the latest reporting software to be ready at the drop of a hat.

Daniel Wallach

The Importance of Legal Age in Gambling

The age to go to a casino serves as a checkpoint for maturity, financial responsibility, and decision-making skills – things that even some adults are still mastering.

After all, navigating through a casino requires more than just an I.D.; it requires the wisdom to know that the house always wins and the restraint not to bet your life savings on a single blackjack hand.

So, as much as we’d love to let everyone join the party, there’s a good reason why the bouncer at the casino door is checking I.D.s. It’s not just about legal compliance; it’s about ensuring that gambling remains a fun, safe, and responsible activity. Who knows, the wait might make that first legal spin at the roulette wheel more thrilling!

As our boss always says:

“Remember, just because gambling is legal doesn’t mean you automatically can!”

Nationwide Standards vs. Gambling Age by State

In their quest to regulate the gambling industry, some states stick to the tried-and-true gambling age in the country of 21. You already know that the least common age for gambling is 18.

Others, eager to include more gamblers in their gaming net, lower the bar to 18 the minimum age requirement for gambling. This allows young adults to bet on their favorite sports or try their luck in a game of online poker, with or without parental supervision. All state laws vary from one to the other!

⚠️ Remember, casinos and sportsbooks are two separate forms of gambling. The age for casino gambling and sports betting may be different, depending on your state!

Legal Age for Gambling at Online Casinos

You’ve got to be 21 years or older to play casino games online, that’s the average gambling age in the United States. This age requirement mirrors the land-based casinos, showing that while the platform may change, the need for a mature gambling age remains constant.

The six states that allow online gambling and their minimum age limits are:

StateMinimum Legal Age to Gamble Online
West Virginia21
Connecticut21
Delaware21
Michigan21
New Jersey21
Pennsylvania21
West Virginia21
Nevada* (Poker Only)21

Penalties and Consequences of Underage Gambling

Underage gambling is like sneaking into a movie you’re too young to see – it might sound thrilling, but the consequences can be more drama than you bargained for. In the world of gambling, playing before you’ve hit the legal age isn’t just a naughty secret; it’s a serious legal offense where more happens than just getting kicked out of a movie theater.

To give a list of potential consequences when a minor gets caught gambling:

  1. Fines up to $1,000 or more.
  2. A six-month driver’s license suspension
  3. Probation
  4. Community service
  5. Jail time

Getting caught can lead to long-term repercussions, like difficulty in finding a job or getting into college. It’s like a bad tattoo from your teenage years, but instead of a questionable ink choice, it’s a mark on your legal record.

  • Driver’s License Suspensions: For underage gamblers under their state’s driver’s license age, their eligibility can be pushed out for six months. For those with a driver’s license, it can be suspended in full for up to six months.
  • Parental Responsibility: Parents and guardians can also be charged as an individual under 18 is considered to be their responsibility.
  • No Plea Bargains: In most states, plea bargains aren’t an option for caught underage gamblers.

Court Required

The only way to prevent automatic severe punishment is to go to court and fight the charges; however, retaining a qualified attorney can be an expensive commitment alone, outside of missing work commitments, stress at home, and other factors.

And it’s not just the underage gamblers themselves who face the music. Casinos, both land-based and online, that allow underage gambling can get hit with severe penalties, including fines, license revocation, and a tarnished reputation. It’s a high price to pay for not checking I.D.s at the door.

Please don’t assume it won’t be you, as an underage gambler, who gets caught. From student-athletes being caught and charged to even major, trusted online sportsbooks being forced to forfeit gambling winning earnings to underage gamblers, in our online-connected world, it is too easy to be caught.

Getting Age-Verified

The age verification process online is like a digital bouncer – thorough, uncompromising, and definitely not open to persuasion. It’s essentially identical to the process for sports betting as well.

Like approaching a car rental calendar or entering a bar, your I.D. has to be verified.

I.D.s are considered:

  • Driver’s licenses (most common)
  • Passports
  • State ID cards

If going into a retail, land-based establishment, a bouncer typically will look over your I.D. to verify its legality. However, online, there is no bouncer! Well, there sort of is – in the form of I.D. verification software like IDMerit.

I.D. verification software takes a scan of your form of I.D. and verifies it is real and legal by checking the provided document against databases,

Timeline of Online Casino Legislation in the USA

1994 – The Free Trade & Processing Act: The Caribbean nation of Antigua and Barbuda passes the Free Trade & Processing Act, allowing online gambling operators to set up shop. Antigua and Barbuda is considered the first online casino hot zone – many of the earliest online casinos operated from there.

1996 – The First Online Casino: InterCasino, claimed by many players and experts to be the first true online casino, is launched, offering a range of classic casino games. Please keep in mind just how cutting edge this was for the time, when most online games looked like the interface of an Atari machine from the eighties!

1998 – Introduction of Online Poker: Planet Poker becomes one of the first online poker rooms, marking the beginning of online poker’s popularity, hosting some of the world’s first online poker tournaments at the same time.

2001 – First Mobile Gambling Features: The first mobile gambling features are introduced on cell phones, but largely didn’t take off due to technological limitations at the time.

2003 – The Rise of Poker: Chris Moneymaker takes home a win at the World Series of Poker, having qualified through an online tournament. This greatly boosts the popularity of online poker.

2006 – The Unlawful Internet Gambling Enforcement Act (UIGEA): The United States passes the UIGEA, prohibiting banks and payment processors from handling transactions related to online gambling. With processing payments now illegal and permanently halted, many online casino operators have abandoned the US market.

2011 – “Black Friday” of Online Poker: The U.S. Department of Justice indicts major online poker sites, leading to a crackdown on illegal online gambling operations in the country. By “taking the snake by the head” the federal government hopes to scare smaller operations into ceasing operations.

2012 – Nevada Issues First Online Poker License: Nevada becomes the first state to legalize and regulate online poker post-UIGEA, marking a significant shift in U.S. online gambling policy as other states see the effects of legalizing online gambling – mainly the potential cash value.

2013 – New Jersey Legalizes Online Gambling: New Jersey passes a comprehensive online gambling bill, becoming one of the first states to allow online casinos to offer full suites of games of all types.

2018 – The U.S. Supreme Court Overturns PASPA: The Professional and Amateur Sports Protection Act (PASPA) is overturned, allowing states to legalize online sports betting. This decision led to a rapid expansion of legal sports betting across the country.

The Future of Online Casinos in the USA

ike trying to predict where the roulette ball will land.

The Legalization Lottery

The star of this gambling show? Online betting. It’s growing like a jackpot with no cap. We’re seeing a digital gold rush, with states legislating online casinos and sports betting faster than you can say “jackpot.” This trend is not just a flash in the pan; it’s more like a long-term investment in the digital future of gambling – a future that isn’t going away anytime soon, as it is engrained in the law.

  • More States Joining the Online Party: The bandwagon effect is real. States are eyeing the economic benefits of legalized online gambling, and nobody wants to miss out on the party. Tribal casinos (almost 500 total in the USA!) and gaming on tribal lands have been the pilot program for most states, demonstrating the economic viability of gaming.

Shelley Buck, a tribal council vice president for the Prairie Island Indian Community, a Dakota tribe, said in an interview with The Minneapolis Post:

“It funds our government; it makes us self-sufficient.”

  • Sports Betting Gaining Ground: In 2018, the Supreme Court struck down the 1992 federal prohibition against sports betting through the case MURPHY, GOVERNOR OF NEW JERSEY, ET AL. v. National collegiate athletic assn. ET AL. It is estimated that before this ruling, $150 billion in illegal bets were placed each year.

According to the words of Justice Samuel Alito in Murphy v. National Collegiate Athletic Association:

“The legalization of sports gambling requires an important policy choice, but the choice is not ours to make. Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own.”

Advocacy and Opposition: Key Players in the Gambling Law Debate

In the high-stakes poker game of gambling legislation, there are key players on both sides of the table. It’s like a match where advocacy groups and opposition are bluffing, raising, and calling in the name of gambling laws in the USA. Let’s meet the big players, but remember, in this game, there’s more than just money on the line!

Pushing for Progress

These are the folks who see regulated gambling as a jackpot for economic growth and innovation. Leading the pack is the American Gaming Association (AGA), founded in 1994 and with offices in Washington, DC. The American Gaming Association is a primary front-runner for the legalization of all forms of gambling, pushing for legal reform at the federal level. Like the cool uncle who wants to teach you how to play poker – but responsibly, the AGA is focused on bringing gambling’s status further into the limelight as a respectable business model and career for those interested in the business.

Then there are the online giants, companies like DraftKings and FanDuel. They’re lobbying harder than a blackjack player trying to hit 21, pushing for the expansion of online gambling laws across the USA. Their argument? Online gambling is safe with player security and financial safeguards in place, and offers high-tech solutions for responsible gaming that in-person retail casinos don’t utilize.

Staying Informed and Responsible Gambling

The future of online casino gaming is bright! It’s one that combines technology, responsibility, and collaboration to create an online casino industry that is not only more exciting and accessible but also safer and more ethical than ever before. And it’s coming soon.

Currently, we’re in the “waiting game” period for multiple states, a number that grows every year as lawmakers see the benefits of legalizing (again, and taxing!) online gambling activities.

As more states legalize online gambling and create customer protections we’re going to see a more integrated, more creative, more entertaining, and most importantly, safer, world of online gambling that’s both fun and accessible.

To be a part of this, stay on top of your local lawmakers about making online gambling legal and keep an ear to the ground on the news about gambling in your state! Together, we can do this!