The laws around online gambling in the United States can be confusing. Each state has its own rules, and some allow almost every form of online gaming, while others strictly prohibit it. Because of this, US gambling laws look like a patchwork — different rules everywhere you go.
This guide explains how US online gambling laws work, what the key regulations mean, which states allow online casinos and sports betting, and what the future of iGaming may look like after 2024. Let’s break everything down into easy-to-understand sections.
What Is the UIGEA and Why Was It Created?
The Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in 2006 to restrict online gambling companies in the US. It did not make online gambling illegal, but it made it harder for gambling sites to accept payments.
✔ What the UIGEA Does:
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Banks and credit card companies must block payments linked to illegal gambling.
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Gambling operators must keep transparent financial records.
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Individuals and companies can face fines, asset seizures, or even jail time if they violate the law.
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The law applies only to US-based financial institutions, not offshore operators.
Because of this law, many online gambling companies moved offshore, and states were forced to create their own rules.
Federal vs State Power: Who Controls Online Gambling?
The US has two major federal laws related to online gambling:
✔ 1. UIGEA (2006)
Blocks unlawful gambling payments.
✔ 2. Federal Wire Act (1961)
Prevents wagers being transmitted across state lines.
But neither of these laws directly bans online gambling.
That means:
👉 Each state decides for itself whether to legalize online gambling.
States can choose to legalize:
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Online sportsbooks
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Daily fantasy sports
Each state has different rules for:
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Allowed games
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Payment methods
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Location restrictions
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Licensing requirements
Because of this, the US has a wide variety of iGaming laws.
States Where Online Casinos (iGaming) Are Legal
Some states have fully regulated and licensed online casinos. As of 2025, these include:
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New Jersey
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Connecticut
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Delaware
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Michigan
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Pennsylvania
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Rhode Island (online casinos expected to launch in 2024)
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West Virginia
These states allow online casino games like slots, table games, poker, and more.
How Different States Approach Online Gambling
Let’s look at how different states regulate online casinos and sports betting.
Nevada — The Traditional Casino Capital
Nevada is famous for Las Vegas and its land-based casinos. Surprisingly, Nevada is very limited when it comes to online gambling.
What Nevada allows:
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Online sports betting (legal since 2010)
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Online poker (legal since 2013)
What Nevada does NOT allow:
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Online casino games like slots, roulette, blackjack, and baccarat
Nevada Gaming Control Board (NGCB) Rules:
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Licensing: All operators must apply and be approved.
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Location: Players must physically be in Nevada to play.
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Age: Minimum age is 21.
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Player Pool: Online poker players can only play against others in Nevada.
The strict approach protects Nevada’s land-based casino industry.
New Jersey — The Leader in Online Gambling
New Jersey has the most open and successful online gambling market in the US.
Since 2013, New Jersey has allowed:
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Online casino games (slots, blackjack, poker, baccarat, video poker)
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Live dealer casino games
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Sports betting
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Online poker tournaments
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A wide range of slot titles and table variations
The New Jersey Division of Gaming Enforcement (NJDGE) oversees licensing. Operators must submit:
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Financial reports
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Security audits
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Background checks
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Technical testing
New Jersey is considered the gold standard of online gambling regulation.
Other States and Their iGaming Policies
Connecticut
Legalized online casinos and sports betting in 2021.
Currently, two licensed platforms operate: DraftKings and Mohegan Sun.
Delaware
One of the earliest to legalize online casinos, poker, and sports betting (2013).
Michigan
Legal since 2019. Offers full iGaming including poker, casinos, and sports betting.
Pennsylvania
Launched online casinos and sports betting in 2019.
Rhode Island
Legalized online sports betting earlier; iGaming scheduled to launch in 2024.
West Virginia
Legalized online casinos and sports betting in 2019.
While their rules differ, most states share measures for:
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Player protection
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Geolocation tracking
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Age verification
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Responsible gambling
Regulations evolve constantly, so players must stay updated.
Latest Developments in US Gambling Regulations
Here are the most important recent industry updates:
📌 1. Revenue Is Growing Fast
Online gambling revenue in the US is expected to reach $35.21 billion by 2029, with an annual growth rate of 8.86%.
📌 2. Nevada Hit a Record $15.5 Billion in 2023
A historic milestone for the NGCB.
📌 3. New York and Kentucky May Be Next to Legalize Online Casinos
New York is the biggest potential market.
📌 4. New Jersey Plans Stricter Revenue Reporting Rules
To increase transparency.
📌 5. Hard Rock Digital Is Acquiring US Assets of 888 Holdings
A major shift in corporate ownership.
📌 6. Illegal Online Casinos Still a Major Concern
Regulators will strengthen consumer protections to combat black-market sites.
While online casinos continue to grow, sports betting remains the dominant legal market across the US.
Future Predictions for US Online Gambling
The iGaming industry is changing rapidly. Here’s what experts expect next:
🔮 1. More States Will Legalize Mobile Sports Betting
Mobile wagering is becoming the preferred option for millions of players.
🔮 2. Outdated Federal Laws May Be Overturned
The PASPA repeal in 2018 is an example — more laws may follow.
🔮 3. More Online Gambling Advertising
Expect more sponsorships, partnerships, and casino promotions everywhere.
🔮 4. Stronger Consumer Protection Rules
States will focus on:
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privacy
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addiction prevention
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safer gambling tools
🔮 5. Rapid Growth of Online Casino Apps
Mobile-first gaming will dominate the market.
Business Tips for Entering the iGaming or Betting Industry
Running an online betting or casino business is challenging. Here are key areas to focus on:
✔ 1. Customer Acquisition & Retention
Use data analytics to personalize marketing and stand out from competitors.
✔ 2. Stay Updated on Laws
Keep a legal team to ensure your business follows every state regulation.
✔ 3. Prevent Money Laundering & Fraud
Invest in cybersecurity, anti-fraud tools, and secure payment systems.
✔ 4. Promote Responsible Gambling
Offer tools like deposit limits, time-outs, and self-exclusion options.
✔ 5. Use SEO and Content Marketing
Paid ads have limits — organic SEO is the long-term growth strategy.
Many casinos work with digital marketing agencies like Fortis Media to increase traffic and visibility.
Key Takeaways from US iGaming Regulations
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US iGaming is growing rapidly and will continue doing so.
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Different states have different rules — no nationwide standard.
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Sports betting is the main driver of gambling growth.
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Online casinos are expanding but still limited to a few states.
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Future changes will likely make online gambling more accessible.
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Businesses must focus on compliance, SEO, and consumer protection to stay competitive.
