The USA gambling laws are a complex and ever-changing creature, and I frequently compare them to a stray dog that’s wandered onto your property. One minute, it seems to be your friend. The next, the beast has locked it jaws around your leg and refuses to let go.
The American laws regarding gambling are too complex to adequately cover in this limited space, but I hope this can serve as an overview. If you want to be certain of your compliance with state or federal laws, I suggest consulting with an attorney.
States without Legal Casino Gambling
I was originally going to list all the US states that allow casino gambling, but it was going to take up too much space and irritate anyone who hates unnecessary scrolling. To make things simple, I’ve included a list of all the US states that prohibit casino gambling, whether owned by an Indian tribe or commercial entity. If you live in one of these states, online gaming is definitely your best bet.
- Arkansas
- District of Colombia
- Georgia
- Hawaii
- Kentucky
- Maine
- New Hampshire
- Rhode Island
- South Carolina
- Tennessee
- Utah
- Vermont
- Virginia
Even states that ban casinos may still allow racetracks, lotteries, or charitable games such as bingo. The two exceptions are Utah and Hawaii, as these states prohibit all forms of gambling.
Slot Machine Ownership
The law fluctuates from state to state when it comes to a private citizen owning a slot machine. Most states allow residents to own any slot that is 25 years or older, although this number varies. The exceptions are Connecticut, Hawaii, Nebraska, South Carolina, and Tennessee, as they prohibit any type of slot machine from being owned by a private citizen.
History of Important US Gambling Legislation
The following is an overview of some of the most important gambling laws passed in the United States over the years. For your reading convenience, I’ve listed them in the order that they were passed into law.
Federal Wire Wager Act – Enacted in 1961, this legislation was part of several anti-racketeering laws that were passed by Congress. Anyone who knowingly uses a wire communication facility for the placing of wagers, or the transmission of information useful for that act, can face a fine or prison sentence.
Interstate Transportation of Wagering Paraphernalia Act – Passed in 1961, this law made it illegal to transport items that could be used in bookmaking and wagering pools.
Federal Travel Act – Also enacted in 1961 to fight organized crime, this law prohibits using interstate travel or a facility such as the mail to distribute the proceeds of an illegal activity.
Racketeer Influenced and Corrupt Organizations Act – More popularly known as the RICO Act, this law was passed by Congress in 1970 to take down the bookmaking and gambling operations of organized crime. Depending on the type of racketeering they’re involved in, a person can face civil liability, as well as 20 years to life in prison.
Professional and Amateur Sports Protection Act – Passed in 1992, this legislation made it unlawful for a person or government entity to promote, advertise, or operate a betting scheme involving professional or amateur sports. This had no effect on legal sportsbetting operations in the United States.
Illegal Money Transmitters Act – This 1992 act was designed to attack money laundering and made it illegal to own, supervise, manage, or control an illegal money transmitting business.
Unlawful Internet Gambling Enforcement Act – Passed into law in 2006, this legislation has had the biggest impact on Internet gaming of all the USA gambling laws. While some mistakenly believe that it makes online betting illegal, its actual purpose is to prohibit financial institutions from accepting funds intended for use in online gambling (including checks, credit cards, and electronic transfers).
Regulated Online Gaming
Online gaming is creeping back into America on a state-by-state basis. Nevada, New Jersey, and Delaware were the first to take part, but a number of other states are considering the matter.
As long as the customer is physically present within an approved state, a licensed Internet casino can accept their business. In almost all cases, becoming licensed is just a matter of paying a huge annual fee to the state in exchange for being allowed to operate.