United States Legal Online Gambling Guide

Federal Online Gambling Laws In The United States

In the USA, there are two active betting laws at the federal level that have at least some impact on where and how you can legally gamble. These are the Wire Act (1961) and the UIGEA (2006). We’re also including the now-defunct PASPA law (1992-2018), as it remains relevant to the domestic USA gambling market and its current growth potential.

Interstate Wire Act Of 1961 – The Federal Wire Act

The Interstate Wire Act – or simply “the Wire Act” – is a 1961 law that bars the interstate transmission of wagers. Historically, the Wire Act has been exclusively applied to interstate sports betting, though the DOJ occasionally tries (and fails) to expand the law to other forms of interstate gambling.

The Wire Act is why a resident in a state where sports betting isn’t regulated can’t simply call up a bookie in another state where sports betting is regulated and place a bet. Of course, the Wire Act applies to all forms of communications – including the Internet – and it’s the reason domestic USA sports betting apps are geo-fenced.

Professional And Amateur Sports Protection Act Of 1992 – PASPA

Under the guise of preserving “the integrity of the game,” the Professional and Amateur Sports Protection Act was passed in 1992 with the actual intent of giving Nevada – and its major Las Vegas tourism industry – a monopoly on US sports betting. The law made it federally illegal for any state to license sportsbooks within its own borders.

New Jersey challenged PASPA all the way to the Supreme Court, where it was overturned on May 14, 2018. After PASPA’s ouster, many states quickly legalized their own domestic sports gambling markets. As of 2022, more than 30 states now have legal US sportsbook options available locally.

Unlawful Internet Gambling Enforcement Act Of 2006 – UIGEA

The Unlawful Internet Gambling Enforcement Act is the only US law that really has any bearing on international/offshore gambling. However, despite its misleading and intimidating name, the UIGEA does not make online gambling with non-US-regulated international betting operators a crime, and it does not target individual players in any way.

Instead, the UIGEA is a banking regulation that mandates domestic financial operators (i.e. banks, credit unions, card services) to have automated systems in place to block transactions to or from non-US-regulated real-money gaming sites.

For players, the UIGEA is an annoyance and nothing else, as all it really does is cause credit/debit gambling deposits to be declined about 3-5% of the time. This is a major reason why legal crypto gambling has taken off in recent years.

State-Based USA Online Gambling Laws

In the US, each state has its own gambling laws. While it’s smart to study these briefly so you know exactly what to expect in your own state, it’s not always totally necessary.

As with federal gambling laws, state gambling laws tend to target non-regulated domestic operators (i.e. underground gambling houses, black market bookies, etc.) and not players themselves.

Only one US state – Washington – has actual laws barring its residents from all forms of online gambling. However, WA gambling laws are apparently unenforced, as we’ve never heard of anyone getting cited, fined, or arrested for gambling online at any site recommended here. Still, if you live in WA, please follow all local gaming mandates.