Online sports betting and other forms of wagering have been restricted for some time, with the Professional and Amateur Sports Protection Act of 1992 preventing fans from placing bets on games. Some exemptions existed, but this mostly only favored Nevada and a few other states.

Before May 2018, only one state had full-service state-regulated sports betting options, that state being Nevada. At this moment in time, the number of states offering legal domestic sports betting is 19. Sports betting is legal in the state of Oregon, but the options are limited. The State Lottery, who also regulates the industry, launched its sports wagering app called Scoreboard in 2019. Alternatively, you can place in-person wagers at the Chinook Winds casino. Legal Online Gambling In Missouri - Denizens of Missouri can also be considered as part of the legal online gambling states, as there has been no laws concocted that limit the games in the state. Legal Online Gambling In Montana - Montana, home of a very lenient eye on gambling, has kept online gambling a legal endeavor. In addition to Nevada, we now have legal sports betting in Delaware, New Jersey, Pennsylvania, West Virginia, Mississippi and additional states since then. The Department of Justice complicated things in 2019 with a sudden decision to go back to its pre-2011 interpretation of the Wire Act.

In 2018, the US Supreme Court ruled that this law was unconstitutional, paving the way for states to set their own rules on sports books. This means that, unlike many European countries, where laws are uniform across the territory, Americans living just a few miles from each other may be subject to very different laws on betting.

American States Where Online Sports Betting is Legal

Nevada and New Jersey were some of the first to take advantage of this, passing legislation almost immediately. As of July 2020, there are 12 states that allow online sports betting in the country, although they each have different rules.

New Jersey

New Jersey offers the widest range of online sports betting with around 17 different licensed sports books. Online casinos are also legal, meaning New Jersey-ites can enjoy new slot games in 2020 as well as betting on a wide array of sports.

Nevada

Online sports betting is possible in Nevada, but you must first create your account while inside a physical casino first.

Indiana

Sports betting websites have been operating since 2019, with a broad selection of bookmakers to choose from. Users can sign up, deposit and place wagers from their computer or mobile device, but there are some restrictions on in-game betting.

Pennsylvania

Most major online bookmakers operate in Pennsylvania where online wagering has been allowed since 2019. The state is a big market since it has one of the biggest populations in the country and a high proportion of sports fans.

Colorado

First allowed in May 2020, sports fans in Colorado already have a good selection of sports books to choose from. It also has some of the most liberal rules surrounding sports betting, with online registration and depositing, no in-game restrictions and wagers on college teams allowed.

Illinois

Illinois passed legislation that allowed online sports betting in June 2019 but the first brands didn’t begin accepting registrations until Q1 of 2020. Existing physical casinos in the state have an 18-month head start over national online brands.

Iowa

After sports betting was permitted in May 2019, several sports books have begun operating in the state. However, until 2021 fans must visit a sports book or casino in-person to create their account.

Mississippi

Mississippi first legalized sports betting in 2018, but it requires bets to be placed inside a casino, even if the customer wants to use their smartphone.

New Hampshire

New Hampshire has allowed sports betting since July 2019 although wagering from a smartphone wasn’t permitted for another 5 months. Only a handful of brands operate in the state right now, but more are expected to open soon.

Oregon

Sports betting is allowed in Oregon but only through the state-operated Oregon Lottery.

Rhode Island

Rhode Island is the only state to allow betting at 18 instead of 21. However, like Oregon, it’s only permitted through the state lottery.

West Virginia

Sports betting in West Virginia has been legal since August 2019, with full online and mobile services allowed.

Which Will be the 13th State?

While there are still 38 states that don’t allow sports betting, it is expected that many more will pass legislation that will change this in the coming months and years. Some of these are expected to do so much quicker than others, including:

• Kentucky – A bill to legalize sports betting was blocked earlier in 2020, but commentators believe this to only be a temporary hurdle

• Ohio – In May 2020, the Ohio House Finance Committee voted to progress a bill that will legalize sports betting in the state. It was approved by the House the next day but still needs to be approved by the Senate.

• Connecticut – Like Kentucky, a bill had been progressing in early 2020 but it has been hit many hurdles.

• Maryland – A bill was approved by the Senate in early March 2020 but it’s not yet clear when it will be approved by the House.
• Missouri – The state of Missouri has been considering sports betting for some time, but there have been delays for it and other matters in recent months, meaning it’s not yet clear when it will pass.

Of these five, either Ohio or Maryland is likely to be the first to permit betting but these could still be derailed.

The United States has always managed to make a living from gambling, going back to the founding fathers who would hold lotteries to attempt to fund much-needed purchases for the country. From this legacy, America has some of the largest casinos and resort towns in the world–and complicated history of gambling legislature to top it all off.

In just the past five years, the repeal of PASPA, the shifting state laws regarding online gambling, and the ongoing challenges to the Federal Wire Act have drastically changed the gambling industry in the United States. For many gamblers, this leaves a lot of questions to be answered about the legality of online play. Here, we’ll break down some of the laws that affect online gambling in the US today and hopefully answer a few of those questions.

Power Balances

Two tiers of legislation make up the legal framework in the United States: federal and state. While state laws apply to the individual states and their residents, federal laws apply to the entire nation. If any state laws that conflict with federal laws then the latter will typically prevail. Presently, a combination of federal laws and state laws determine whether or not online gambling is legal.

Repeal of PASPA

The recent repeal of PASPA in 2018 was one of the biggest exchanges of legislative powers in recent years, which opened up the lawmaking rights surrounding sportsbook regulation to states. Before the repeal, it was illegal for states that hadn’t already established a sportsbook market to decide to do so. Several states that wanted to get in on the sportsbook business took the issue to the courts, arguing that PASPA went against anti-commandeering doctrine. The Supreme Court agreed, repealing PASPA because it violated the tenth amendment, which says that all power not expressly given to the federal government is reserved for the states.

Now each state is allowed to legislate its own sportsbook regulation, opening up new economic avenues. During the COVID-19 lockdowns, some states used this as an opportunity to recoup income after facing financial shortfalls and stoppages. The sports betting market has grown into a billion-dollar industry nearly overnight and continues to climb with online bookmakers becoming increasingly popular. The only problem is that, technically, online gambling is illegal and there is still a lot of grey area when it comes to the crossover of state and federal laws.

Federal Effect

Both the Federal Wire Act of 1961 and the Unlawful Internet Gambling Enforcement Act are federal laws that limit online gambling modernly. The Wire Act was initially created to criminalize using wire communications to place a bet in another state, but the Department of Justice has gone back and forth with the courts for years about the present-day interpretation of the Act.

At this time, a District Court Judge has ruled that the Federal Wire Act only applies to sports gambling, not all online gambling. In response, the DOJ has filed a notice of its intention to appeal that ruling, believing that the Act is “not uniformly limited to gambling on sporting events or contests.” The UIGEA may not make online gambling illegal outright, but it makes taking unlawful money wagers online criminal, and in a market with so much grey area that can be a big risk for operators.

Legal Sports Betting States

Online Gambling and You

So what does all of this mean? Is online gambling illegal or not? Well, yes and no. Similar to marijuana laws in the US, state and federal laws are conflicting. There isn’t much risk for individuals who want to gamble online, as long as they are playing on safe and reputable sites. Operators in the US are at much higher risk for prosecution, although the more states that pass pro-online gambling laws and the more public sentiment leans towards allowing online gambling, the less likely it is that federal entities will feel pressure to go after them.

How to Prepare

The most important thing to do when gambling online is to know your state laws and to pick your play sites very carefully. Even if your state has introduced more lax gambling laws, not every site that is available is going to be playing by the rules. You can use a third-party aggregate to find legal online gambling sites in the USA, like those recommended from oceanalaw.com for example, that will vet your options for you and even show you some of the best welcome promos available. Practice good cyber hygiene and keep an eye on the developing legislation and politics surrounding online gambling, so any sudden changes don’t catch you off guard.

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