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Legal regulations for the online gambling industry across US states

(Photo Illustration - MetroCreativeConnection)

Online gambling is legal in the United States but its legal status differs from one state to another. Despite these laws being put in place at the federal level, it is the individual states that make their laws regarding online gambling hence leaving the commonwealth with scattered laws. Analyzing the state of affairs of online gambling legal systems in the US today, this article describes the states wherein online gambling is legal, the legal systems governing legal online gambling, as well as what it means for the players and operators.

Federal Overview

On the federal level, there are several important legal acts governing the provision of Internet gambling. It was aimed at Sports betting but can be invoked to cover other sorts of internet gambling. In 2006, The Unlawful Internet Gambling Enforcement Act was passed, which prohibits the payment processing of unlawful Internet gambling and inhibits many offshore gambling sites in the US.

Nonetheless, the UIGEA doesn’t categorically point out what comprises prohibited Internet gambling and therefore it is legislated by the individual states. Currently, the Professional and Amateur Sports Protection Act (PASPA) of 1992 which prohibited sports betting across the country was deserted by the Supreme Court in the year 2018, thus making it legal for states to allow and regulate sports betting. As with the situation in New Zealand where players predominantly play the games looking for bonuses like “NZ no deposit bonus codes,” US states provide different forms of incentives and bonuses to players aimed at the legal betting platforms.

States Where Online Gambling is Legal

Some states have independently made it legal for people to engage in different types of online betting such as online casinos, online poker and online sports betting. Key states where online gambling is legal include:

  1. New Jersey: New Jersey is one of the most popular states concerning online gambling as it legalized online casino games and online poker in year 2013. There is a good legal framework in the state being monitored by the New Jersey Division of Gaming Enforcement. Below is a list of some of the states that legalized online gambling after the repeal of PASPA in 2018; New Jersey is among them since it also legalized online sports betting in the same year.
  2. Pennsylvania: In 2017, after the cue from New Jersey, online casino games, poker and other forms of betting, including on sporting events were legalized in Pennsylvania. Operations of the industry are supervised by the Pennsylvania Gaming Control Board (PGCB), which closely monitors and demands all forms of fairness and security in the operations.
  3. Michigan: In 2019, Michigan allowed branded casino games, online poker and sports betting and the first online casinos went live in January 2021. The body that regulates online gambling activities in Michigan is the Michigan Gaming Control Board (MGCB).
  4. Nevada: Nevada has not only recognized online poker, which seems to have strong connections with the whole state, but has not extended this to online casino games. Nevertheless, online sports betting is also legal and the Nevada Gaming Control Board (NGCB) approves it.
  5. Delaware: Poker and online casino games were approved in Delaware as early as 2012, which means the state is among the pioneers in America. Thus, regulation of online gambling in the state of Delaware falls partly under the jurisdiction of the Delaware Lottery.

Regulatory Frameworks

Every legal state has independently developed its set of rules that are supposed to guide online gambling. Such frameworks normally entail the standards of license to the operators, measures put in place to regulate the bias of the games, guidelines put in place to protect the consumers and ways and measures used to address issues to do with the gambling disorders.

  • Licensing and Regulation: It has been observed that states demand licensing of online gambling operators so that they do not violate certain principles related to financial solvency, security and integrity. Organizations like NJDGE, PGCB and MGCB check the background and conduct regular audits to minimize violations.
  • Game Fairness and Security: Regulating bodies demand that operators of online gambling sites use certified RNGs to qualify for the running of the games. Furthermore, operators need to pay proper attention to security aspects of a player’s information and financial transactions.
  • Consumer Protection: The legal measures also cover provisions that empower the consumers they include standard features that provide for detailed Terms and Conditions, a provision on the mode of solving customer complaints and disputes and a provision against fraudulent conduct.
  • Problem Gambling: Operators must also state and make available, resources and assistance for problem gambling such as; self-exclusion programs, limitations concerning depositing and betting and counselling.

Implications for Players and Operators

This loss of homogeneity has drastic impacts on both the players and the operators within the states. Players have the opportunity to play legally at an online casino since such an activity depends on their state. Depending on the specific state of the country, players are allowed to play various games online from licensed sites giving them a trusted platform to play on.

The dynamics of the legal structure of such markets can be viewed as both advantages and disadvantages for the operator. Legally regulated markets present great growth opportunities, but the main challenge includes pre-screening of the regulation rules and the need to acquire several licences to operate in different states. Also, operators need to adhere to the laws of each state as each state law might be different.

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