Federal Gambling Laws in the USA
The federal gambling laws may seem strict, but they provide excellent protection for players and casino operators alike. In this article, you will learn which are the main gambling laws and gambling regulators in the USA. We also listed the most popular casino games, in which state you can play them, and more.
Besides the land-based casinos, the US gambling laws regulate the activity of the US online, riverboat, tribal casinos, and all other gambling locations on land and off-shore. In the first part of our article, we will tell you about the main gambling laws in the USA, the gambling taxes, and the penalties for breaking the laws.
US Gambling Laws – State vs Federal Legislation
The gambling laws in the U.S. cover the gambling activities, determine which games are legal, issue permits to gambling locations, regulate online casinos, and more. You can read our article on the US gambling laws for more details on the matter. Now, we will give you the main federal laws that regulate gambling in the USA:
- The Unlawful Internet Gambling Enforcement Act (UIGEA)
- Amendment to Interstate Horseracing Act
- Illegal Money Transmitting Business Act of 1992
- Illegal Gambling Business Act of 1970
- Federal Anti-Lottery Laws
- Professional and Amateur Sports Protection Act of 1992
- Interstate Wagering Amendment of 1994
- The Gambling Ship Act
- The Wire Wager Act of 1961, AKA the Wire Act, or Wire Act Violation: Internet v. Phone
- Travel Act of 1961
- The Professional Amateur Sports Protection Act (PAPSA) of 1992
- Racketeer Influenced and Corrupt Organizations Act of 1970
- Transportation of Gambling Devices Act of 1951.
The USA legislation system allows every state freedom of choice on legal matters. The federal legislation is mandatory, but there are situations where the state authorities make decisions against or amend the federal laws. A great example is online gambling. The federal law vs state law discussion regarding the legality of the online casinos is settled with the freedom granted to the state authorities to legalize them or not. In addition to that, every state is free to create state laws.
Regulators of the Gambling Laws in U.S.A.
The gambling laws in the USA are created and regulated by the US Federal Government. The government creates the main laws that legalize and organize the casino world on all U.S. territories and districts. Since every state can add or amend the federal laws if necessary, it often happens that the different states have different legislation. For example, the gambling laws in California, Nevada, and Pennsylvania made the online casinos legal, while Utah and Hawaii ban it completely.
When federal gambling laws are broken the matter is dealt with first by the local and state authorities. If the violation is on a large scale, the US judicial system requires the issue to be transferred to the federal authorities. At this point, all investigations are performed by the Federal Bureau of Investigations (FBI) experts.
The trials, if there are any, are overseen by the state court or by the Federal Court. The Federal Judges settle matters that cover a large number of funds, casino frauds, tax evasion on a large scale, gambling crimes that go beyond the borders of a single state, and more. The verdicts are final, and their appeal is hard to get. When a penalty is imposed, it can vary from heavy fines, probation, various bans, and even time at a federal prison.
The gambling laws US citizens and visitors should follow are clear in regards to the players gambling tax. In short, all winners and losers are bound to fill a form about their financial state. That applies for prizes and losses above certain limits, so the $20 you spent on the slot machine are not taxable. You can learn more about this in the IRS gambling income and losses.
Win or lose, we recommend that you abide by the law and pay your taxes. Otherwise, you may become IRS’ or FBI’s person of interest. Don’t worry, you can’t enter the list of the FBI’s federal most wanted if you don’t pay your taxes, but there might be serious fines or even jail time.
Legal and Illegal Gambling in the United States
The US online gambling laws decide the legal gambling and casino games and what is illegal gambling. In the table below, we gave you some of the games you can legally play at the different states.
| Game | Legal in State | Legal Gambling Age |
|---|---|---|
| Lottery | AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY | 18+ |
| Online Lottery | DE, GA, IL, KT, ME, MI, NH, NY, PA, VA | 18+ |
| Pari-Mutuel Betting | AK, AZ, AR, CA, CO, DE, DC, FL, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MT, NE, NV, NH, NJ, NM, NY, ND, OH, OK, OR, PA, RI, SD, TX, VA, WA, WV, WI, WY | 16+/18+ |
| Racetracks | AK, CO, DE, FL, IL, IN, IA, KY, LA, ME, MD, MA, MI, MN, NJ, NM, NY, OH, OK, PA, RI, VA, WV, WY | 21+ |
| Casino & Poker | All states allow a form of land-based or riverboat casinos except HI and UT | 18-21+ |
| Online Gambling | DE, NV, NJ, PA, WV | 18-21+ |
| Online Poker | DE, NV, NJ, PA, WV | 18-21+ |
| Sports Betting | DE, MS, MT, NV, NJ, OR, PA, WA | 18-21+ |
| Online Sports Betting | DE, IL, IN, IA, MT, NV, NH, NJ, NY, OR, PA, RI, TN, WA, WV | 18-21+ |
| Daily Fantasy Sports (DFS) | CA, CO, CT, FL, GA, IL, IN, KS, KY, MA, MD, MI, MN, MS, MO, NE, NJ, NM, NY, OK, PA, RI, SC, TN, VI, VT, WI, WV | 18-21+ |
| Social Gambling | AL, AK, AZ, CA, CO, CT, DE, FL, HI, IO, KY, LA, ME, MN, MT, NV, NJ, NM, NY, ND, OH, OR, SC, TX, VA, WA, & WY | NA |
You can see that the Texas gambling laws allow all kinds of gambling, while other states are not so liberal. There are two states – Hawaii and Utah – that prohibit all kinds of gambling and online and land-based casino activity:
- Hawaii: The state’s economy is dependent on the “family-friendly” tourism. Besides the locals are of Polynesian descent, so Native American and tribal casinos hold no grounds for existing here.
- Utah: The Church of Latter Day Saints (Mormons or LDS) is dominant in this state. Therefore, the society and public policy are against any forms of gambling, including tribal gambling.
You may think that it is not fair to the locals and visitors of those two states. As you already know, each state chooses weather or not to legalise gambling and which games are considered legal. Hawaii and Utah ban all casinos and gambling games in the name of strong community, and healthy family foundations. Even though official gambling is prohibited, people can still visit other states to get some casino action.
US Land-Based, Riverboat, and Online Casinos
The United States online gambling laws regulate the US gambling sites and the US gambling age in different states. Now that you know the main laws and gambling age, it is time to read about the different types of legal gambling locations in the USA.
USA’s Best Gambling Cities
The USA has incredible natural sights to see and amazing cities. For many US citizens and guests of the country the reason to travel is gambling tourism. We picked the best cities regulated by the gambling laws in U.S. where you can spin the American Roulette wheel, enter a poker tournament, spin the slots reels, or throw dice on the craps tables. You can stay at any of the Las Vegas hotels and play at the best casinos. Here is our list of the greatest gambling cities in the USA:
- Las Vegas, NV
- Atlantic City, NJ
- New Orleans, LA
- Philadelphia, PA
- Chicago, IL
- Black Hawk & Cripple Creek, CO
- Deadwood, SD
- Council Bluffs & Carter Lake, IO
- Biloxi & Gulf Coast, MS
- Fort Lauderdale-Miami, FL
The United States online gambling laws allow the gamblers to play safe and enjoy casino games and poker tournaments from the US Virgin Islands to Atlantic City. Our article on the best online casinos in the US may give you some ideas where to book your vacation next. Just remember to obey the US gambling laws and avoid getting in trouble with the Federal Crime and Investigation Department.
Native American Casinos
The Federal gambling laws, especially the 25 U.S. Code CHAPTER 29—Indian Gaming Regulation, can’t entirely regulate any Indian casino. All Native American casinos are located on a tribal land and therefore follow mainly the tribal jurisdiction. Do not get fooled, you still need to be at a legal age to play at an Indian casino and report your winnings and losses.
You can find land and riverboat casinos owned and operated by Native American tribes in the states AL, AK, AZ, CA, CO, CT, DC, FL, ID, IN, IA, KS, LA, ME, MA, MI, MN, MS, MT, NE, NV, NM, NY, NC, ND, OK, OR, RI, SC, SD, TN, TX, VA, WA, WI, WY. There are many benefits of playing at the best Native American casinos. Many of them offer better entertainments than the rest and even extras like selling medical cannabis on the property.
Riverboat and Cruise Ship Casinos
Undoubtedly, you have seen the river gambling boats in many movies like the movie Maverick (1994). Riverboats on Mississippi or Missouri rivers were the only gambling locations for many years because the US gambling laws in the past did not regulate gambling on water. In other words, gambling on the first of the riverboat casinos was legal only when the ship is away from the shore and sailing.
Today, casino boat gambling is regulated, and all players are more than welcome to join the games. Most of the boats offer also comfortable accommodations and tasty cuisine. The extra entertainment makes the riverboats an excellent choice for a family or romantic vacation, and of course, an exciting gambling location.
The federal gambling laws allow gambling on cruise chips when the ship is under US flag and sails in US waters, then the activities are governed by the US federal and state laws. Under the international maritime law, international waters become territorial waters when the ship sails within 3 – 12 miles from the coastline. If your cruise ship goes beyond the 12 miles of the coast of the US, then all on-board casino activity will be closed for business.
What if the ship is visiting countries? If you have booked a vacation with Carnival Cruise Line, Princess Cruise, or another cruise ship casino and hotel giants, then you will most likely visit far-away places. In this case, once you enter the foreign country territory, the casino will obey the local laws and the treaties regulating the gambling activities between the two countries.
Online Casinos in the USA
US online gambling laws regulate legal online gambling in many states. Some of the most liberal states regarding online gambling are Pennsylvania, New Jersey, Nevada, Denver, and West Virginia. There, you can play at online casino real money PayPal sites, as well as lottery mobile apps and a wide variety fo games, such as live poker, sports betting, horseracing, and daily fantasy sports.
Many other states join the listed above in legalizing online sports betting (IL, IN, IA, MT, NH, NY, OR, RI, TN, WA), online lottery (GA, IL, KT, ME, MI, NH, NY, VA), and the Daily Fantasy Sports (CA, CO, CT, FL, GA, IL, IN, KS, KY, MA, MD, MI, MN, MS, MO, NE, NM, NY, OK, RI, SC, TN, VI, VT, WI). In our online gambling laws article, you will learn what other online games you can play, where can you find free American Roulette online, and more.
Federal Gambling Laws FAQ
Our article on the federal gambling laws told you which the main laws are regulating the different gambling types on US territory. Now, we will answer our readers’ most frequently asked questions.
