Each state, rather than the federal government, has the autonomy to mandate legal online gambling. The federal government has tried to step in. However, many see their tactics as outdated and inefficient. As a result, there are some choppy waters when navigating the differences between each state’s laws. However, progress has been made as states work together more frequently to create a unified and safe gambling experience for all players.
Federal Online Casinos Legislation
Over the last 50 years, the federal government has attempted to develop numerous forms of legislation to regulate the gaming industry. In fairness, it was nearly impossible to maintain pace with the rapid ascent of the internet and online gaming. The most important legislative decision came at the hands of the DOJ when it gave states the freedom to implement legal online gambling at their behest.
State Online Casinos Legislation
All 50 states have their laws and regulations regarding legal online gambling, making it difficult for players to track the differences. For example, gambling is 100% illegal in Hawaii and Utah. In contrast, Pennsylvania and New Jersey allow online gambling of all types, including online sports gambling and poker.
Sports betting, in particular, has rapidly grown in popularity in the U.S. after the federal government rescinded PASPA, passed in 1992. This gave states the same freedom to regulate the sports betting industry as they already had over online casinos. Sports betting online is legal in more states than online poker and casinos.
This is mainly because online casino gaming has taken much longer to adapt to modern laws and regulations around its industry. For example, just look at the fact that ten years after the launch of the first legal online casino, only seven states still provide secure online casinos that are locally regulated.
- Connecticut: The Nutmeg State legalized USA online casinos in 2021 under the same House Bill that legalized online sports betting, poker, and Daily Fantasy Sports. All players 21 and up have two legal casino sites regulated by the Connecticut Department of Consumer Protection.
- Delaware: In 2013, Delaware was one of the first states to offer players a legitimately safe online casino. The Delaware State Lottery is allowed to provide online casino games.
- Michigan: In 2019, Michigan lawmakers passed the Lawful Internet Gambling Act, allowing online gambling and casinos to be legal. However, it was another two years before the first online casino launched in the state. A few years later, there are no more than 15 legal real money online casinos in MI.
- New Jersey: New Jersey is and always has been one of the homes of legal gambling in the U.S. Today, more than 20 online casinos are operating in New Jersey after the legal online gambling bill was passed in 2013.
- Pennsylvania: Pennsylvania began permitting online casinos to operate legally in 2019, nearly a year after the governor signed HB271. Influenced somewhat by neighboring New Jersey, PA residents have the luxury of more than 20 safe and secure online casinos.
- Rhode Island: One of the newest states to allow legal online casinos, Rhode Island’s governor signed the bill in June 2023. Like Delaware, the state’s lottery is allowed to operate online gaming sites.
- West Virginia: WV also runs its online gaming operations through the state lottery. The first online sites were launched in 2020, and four sites are currently running.