States Where Internet Gambling Is Illegal
Legal Online Gambling In Hawaii - Hawaiians will have no choice for gambling outside of the Legal Online Gambling in Hawaii. All forms of gambling are readily available, however. Legal Online Gambling In Idaho - Idaho has no restrictions on the prospect of legal online gambling. Another state with a significant casino industry, but with no real movement toward online poker or gambling legalization. It will join the game sooner rather than later.
Illegal Sports Betting
How Offshore Operators – and Those Who Support Them – Break U.S. Law
For decades, state-regulated brick and mortar sportsbooks in Nevada offered the only legal sports betting in the U.S. However, with the advent of the internet, illegal bookies have taken advantage of lax or even non-existent laws in places like Antigua, Costa Rica, Latvia, and Panama to set up online sportsbooks that target American customers. These sportsbooks are illegal in the United States and prey on unsuspecting Americans, despite claims of regulation and licensure in their home countries. In the wake of the Supreme Court decision in Murphy v. NCAA and nearly half of the states legalizing sports betting, these unscrupulous operators continue to take advantage of the unsuspecting public.
Sports betting, like all other forms of gambling, is highly regulated at the state level. Each state in the country can decide if and to what extent it will permit gambling. Since the decision in Murphy v. NCAA, 22 states plus the District of Columbia have legalized sports betting. Each of these states have established rigorous licensing regimes to ensure game integrity and consumer safety. Sportsbooks and bookies that offer sports betting outside of these licensing regimes – whether in person or online – are illegal.
Federal law makes it a crime to participate in the business of illegal gambling. There are a variety of statutes that make it illegal to operate or participate in financial transactions related to an unlicensed sportsbook in the United States, including the Wire Act, the Illegal Gambling Business Act, the Travel Act, and the Unlawful Internet Gambling Enforcement Act.[i] Beyond federal statutes aimed specifically at gambling, a variety of broader criminal laws targeting organized crime have also been the basis for prosecution of offshore gambling rings.[ii]
The threat of federal prosecution is not hypothetical. Prosecutors have been successfully pursuing cases against offshore operators for two decades. The first ever prosecution of an offshore book came in 2000 against Jay Cohen, founder of the Antigua-based World Sports Exchange. A jury found Cohen guilty of several violations of the Wire Act, for which he was sentenced to two years in jail.[iii] In another case, the federal government charged 57 individuals with operating an illegal gambling business, racketeering, and money laundering in connection with their Panama-based sportsbook.[iv] The trials continued for many years, resulting in convictions, fines, and other sanctions.
Another high-profile case from the Southern District of New York illustrates the far-reaching impacts of illegal sports betting. In 2016, the U.S. Attorney charged and prosecuted 46 leaders of several organized crime families with everything from assault, extortion, and gun trafficking, to loansharking and illegal gambling.[v] The sports betting charges stemmed from the defendants’ use of online, illegal sportsbooks based in the United States and abroad to enrich the crime families.
Federal prosecution is not limited to the operators themselves. The Department of Justice has warned that media outlets that accept advertising dollars from these illegal operators could be liable for aiding and abetting criminal activity.[vi] Microsoft, Google, and Yahoo entered into a $31.5 million settlement with the federal government in relation to their promotion of illegal, offshore gambling in 2009.[vii] The Sporting News, one of the oldest sporting outlets in the country, entered into a $7.2 million settlement with the Department of Justice to resolve accusations stemming from accepting advertising from offshore gaming outlets.[viii] Even short of criminal prosecution, media outlets may be subject to seizure of funds or subpoenas as part of related prosecutions or investigations.
While federal law is abundantly clear on the illegality of such operations, these books and even the media, often claim it is not illegal for the consumer to use offshore sites. While it is true that no federal law targets bettors using offshore books, many states have laws that make using these books illegal. Many of the 28 states with no legalized sports betting expressly make it illegal for consumers to wager on sports in any form, including via offshore operations.[ix] And several states that have legalized sports betting specify that consumers should only engage in such activity through a legal, regulated sportsbook. For example, it is illegal in Nevada and Michigan to place a wager with a sportsbook that is not authorized to operate in the state.[x] It is also, of course, illegal for a sportsbook to operate without proper licensure and regulatory oversight in any state with legalized sports betting.
Beyond being illegal, these offshore operations also fail to provide any meaningful consumer protection. While legal, regulated sportsbooks uphold key principles of responsible gaming, protection of consumer funds, data privacy, and more, offshore books do nothing to protect their patrons. In fact, should a consumer find themselves at odds with their offshore bookie (not being able to withdraw their funds or disagreeing with how a bet was settled, for example), there is no one the consumer can turn to for help. Further, should the federal government initiate a proceeding against any of these offshore books, customers might lose their money on deposit with the book with little to no recourse. These illegal operators also avoid contributing state and local taxes to U.S. communities.
Offshore sportsbooks violate federal and state laws in targeting U.S.-based consumers. Worse yet, they take advantage of confusion and uncertainty to entice consumers to use their illegal sites. For many consumers, they only realize the dangers in using these sites when it is too late – when they have a complaint or a problem, but no recourse to resolve it. Only when all sectors of the sports betting ecosystem work together – the operators, the suppliers, the media, the regulators – can we ensure customers can easily find and use safe, legal, and regulated sports betting sites.
Citations
[i] The Wire Act, 18 U.S.C. § 1084; Illegal Gambling Business Act, 18 U.S.C. § 1955; Travel Act, 18 U.S.C. § 1952, Unlawful Internet Gambling Enforcement Act, 31 U.S.C. §§ 5361–5366.
[ii]E.g. Racketeer Influenced and Corrupt Organizations (RICO), 18 U.S.C. §§ 1961–1968 and 18 U.S.C. §§ 1956, 1957 (relating to money laundering).
[iii]United States v. Cohen, 260 F.3d 68 (2d Cir. 2001); see alsoMan Jailed in 1st U.S. Online Gambling Conviction, Reuters, Aug. 11, 2000, https://archive.nytimes.com/www.nytimes.com/library/tech/00/08/biztech/articles/11gambling.html.
[iv]Fifty-Seven Charged with Operating Illegal Online Sports Gaming Business, U.S. Dept. of Justice, Apr. 10, 2013, https://www.justice.gov/usao-wdok/pr/fifty-seven-charged-operating-illegal-online-sports-gaming-business.
[v]Manhattan U.S. Attorney Charges 46 Leaders, Members, and Associates of Several Organized Crime Families of La Costa Nostra with Wide-Ranging Racketeering Charges, U.S. Dept. of Justices, Aug. 4, 2016, https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-charges-46-leaders-members-and-associates-several-organized-crime.
[vi]See Letter from John G. Malcom, Deputy Assistant Att’y Gen. to Nat’l Ass’n of Broadcasters, June 11, 2003, available at commlawcenter.com/files/2014/02/NAB_letter-030611.pdf.
[vii] Jason Ryan, Microsoft, Google, Yahoo to Pay $31.5M Over Illegal Gambling Ads, ABC News, Jan. 8, 2009, https://abcnews.go.com/Technology/FedCrimes/story?id=4029545&page=1.
[viii] Matt Richtel, Sporting News Settles Case on Gambling Ads, N.Y. Times, Jan. 21, 2006, https://www.nytimes.com/2006/01/21/business/media/sporting-news-settles-case-on-gambling-ads.html.
[ix]See, e.g., Ga. Code Ann. § 16-12-21; Tex. Penal Code § 47.02; Wis. Stat. Ann. § 945.02
[x]See Nev. Rev. Stat. 465.093; Mich. Comp. L. § 750.310e.
This is a guide for online poker players in the America who want to know where they can play online poker and when they might be able to play in their home states. For states where online poker is legal, this is a guide for US online poker room reviews, poker sites available in your area, deposit bonuses, and online poker announcements.
US online poker laws seem to be changing monthly since government attorneys announced that the Wire Act cannot be used to prohibit states from allowing online poker. Online poker rooms and online gambling sites are clamoring for state licenses, and the US online gambling landscape is going through a major change.
For a select few Americans, online poker is here already. Nevada, New Jersey, and Delaware are leading the United States into the billion-dollar-a-year industry, and many more states are looking to get into the game in the very near future.
By the end of 2015, as many as a dozen states could allow their residents to play on legal online poker sites. That number may be higher if a federal bill, the Internet Poker Freedom Act of 2013, is approved in 2014. But since the odds of that happening are less than hitting a one-outer on the river, all the online poker news concerning legislation is coming from individual states.
American online poker laws are about to go through drastic revision, and US online poker sites will pop up as the laws change. Laws are changing fast, and this guide promises to remain up to date on all possible movements concerning online poker legislation.
A brief overview of each state’s stance on online poker is below, but click through for a full update on the state’s online poker laws, and gambling laws in the state in general.
Alabama
Alabama doesn’t even have a state lottery. It’s home to some of the most morally strict policymakers in the country, so poker is not coming anytime soon. Read more ...
Alaska
Online poker legislation remains frigid in the great white north, but the game has a few fans who are elected officials, and although lawmakers resisted expanding almost any type of gambling in here, online poker has a chance. Read more ...
Arizona
Despite a thriving Indian casino industry — or more like because of it — lawmakers are being cautious with online poker. Also, the governor is a tough opponent of any type of gambling expansion, poker included. Read more ...
Arkansas
Online poker legislation may be far off, but unlike some of its neighboring states, online poker may come to Arkansas with a federal push. Read more ...
California
Online poker will come to California maybe as soon as 2014. A crowded industry split into three factions may delay action on online poker bills already submitted. Read more ...
Colorado
With a steady and strong push from its significant casino industry, online poker legislation is most likely forthcoming in Colorado sometime in 2015. The state is already studying the effects online poker would have. Read more ...
Connecticut
As its neighboring states start to allow their residents access to online poker sites, look for Connecticut to follow suit. As such a small state, it’s a prime candidate to contract with other states for shared player pools. Read more ...
Delaware
As of October 2013, online poker is completely legal, regulated, and live in Delaware. Read more ...
Florida
Two powerful casino forces — the racinos and Indian tribes — face off against a conservative state government intent on preventing gambling expansion. The governor has won the first round. Read more ...
Georgia
The official view toward poker here is as rigid as a Georgia pine. Poker is gambling, and gambling is bad in Georgia. Read more ...
Hawaii
Although one of the few states without any form of legalized gambling, Hawaii is rumored to be looking to get into the online-poker game. Read more ...
Idaho
Completely in the middle ground, there is no pending online poker legislation in Idaho. A grassroots effort would help here. Read more ...
Illinois
Online poker is being talked about by state officials. look for an online poker bill sometime in 2015. Read more ...
Indiana
With a conservative governor and minor casino industry, it’s going to take a political campaign by its online poker players to move online poker forward. Read more ...
Iowa
Since 2011, certain lawmakers have pushed for online poker legalization. Now with states going live, watch for Iowa to join the game in 2014 or 2015. Read more ...
Kansas
A significant political shift is necessary for online poker to even be considered in the Sunflower State. Read more ...
Kentucky
Now that the powerful horseracing industry has wedged itself into the multi-state casino industry, watch for online poker legislation to move fast once more states go live. Read more ...
Louisiana
An online poker debate should come to Louisiana in 2014, with significant movement in 2015. Online poker does face some opposition here. Read more ...
Maine
Brand new to the casino game, and with such a pretty face, Maine would make a lovely interstate online poker partner. However, it remains a wallflower. Read more ...
Maryland
With a healthy paranoia that it is missing out on the online poker industry, lawmakers began to push for it in 2013. Look for another push in 2014 and beyond. Read more ...
Massachusetts
Cautiously optimistic is how online poker players in Beantown should feel. Online poker won’t come there as quickly as it should, but it’s likely coming at some point. Read more ...
Michigan
A large casino industry will fuel the push toward online poker. State lawmakers seem to be wary, though. Read more ...
Minnesota
With a strong casino industry, it would seem Minnesota would be further along with online poker legalization than it is. It may catch up soon. Read more ...
Mississippi
An online-gambling bill failed to make it out of committee in 2013, but a multi-billion dollar casino industry will have a say. Read more ...
Missouri
Another state with a significant casino industry, but with no real movement toward online poker or gambling legalization. It will join the game sooner rather than later. Read more ...
Montana
Poker is considered gambling here, and online gambling was outlawed in the state in 2005. With no pending legislation, it may be awhile. Read more ...
Nebraska
Poker-playing multi-billionaire hedge-fund manager Warren Buffett lives here and he hates the thought of online gambling. Poker is sadly included in his categorization. Read more ...
Nevada
Online poker is legal in Nevada, and several rooms are live for real-money play. Read more ...
New Hampshire
For such a small state, New Hampshire has more online poker players per capita than anyone else. Still, there’s no pending legislation. Read more ...
States With Legal Internet Gambling
New Jersey
Online poker and gambling is legal in New Jersey. Online poker will be available in November 2013. Read more ...
New Mexico
New Mexico's 20 Indian casinos will have a say in the legislation of online poker here. Tribes have threatened to stop payments to the state if it legalizes online gambling. Read more ...
New York
New York may very well be the fourth state to legalize online poker in 2014. It has the support of the governor, as well as many lawmakers. Read more ...
North Carolina
No real online poker push is coming from North Carolina. Check back once other states start to go live. Read more ...
North Dakota
This was once the first state to try to legalize online poker in 2005; the feds put an end to that. Online poker legalization is on the backburner. Read more ...
Is Online Gambling Illegal In The Us
Ohio
A state late to the casino game, online poker legalization has a real chance in 2015 or 2016, particularly if Pennsylvania beats Ohio to the market. Read more ...
Oklahoma
This state allows tribes to operate online poker rooms, with one major caveat: They can only do business with people living in other countries. What a rub. Oklahomans will have online poker sooner rather than later. Read more ...
Oregon
Once California begins to offer online poker, watch for Oregon’s Indian casinos to begin applying pressure to lawmakers. They have shown to be a savvy lobbying group. Read more ...
Pennsylvania
With one scrapped bill that would have legalized online poker and gambling, be sure another will come in 2014. Although facing resistance in committee, online poker should be here by 2016. Read more ...
Rhode Island
A prime candidate to partner with Delaware. Industry insiders say a contract is in the works. Read more ...
South Carolina
The online-poker industry faces major resistance here. Any talks of gambling expansion are immediately quashed. Read more ...
South Dakota
Online poker isn’t on the lips of any lawmakers here. But with a strong Indian casino industry, look for that to change in 2014. Read more ...
Tennessee
A strong religious base makes it difficult to move online poker legislation anywhere. Like, harder than shoving a mule through keyhole. Read more ...
Texas
Home of the congressman behind the Internet Poker Freedom Act of 2013, several bills that affect poker, online and otherwise, currently reside in committees. Texas looks like it wants to finally acknowledge the game. Read more ...
Utah
States Where Online Gambling Is Illegal
Online poker players in Utah at least have Nevada just over the border. Other than that, Utah is a desert for online poker players. Read more ...
Vermont
The tiny state may be game to contract with Delaware, New Jersey, and/or Nevada and allow its residents access to online poker sites. Once more states allow online poker, watch for Vermont to follow. Read more ...
Virginia
Online poker players must hope for political change statewide in order to eventually access online poker sites. It has a law on the books that outlaws Internet gambling. Read more ...
Washington, D.C.
Online poker was set to come to its citizens in 2013, but politics played its part and it was delayed. Online poker will definitely come to D.C. eventually. Read more ...
Washington
The only state that criminalizes the online poker player, a grassroots movement stemming from that law is growing. Plus, Indian casinos are now in favor of legalization. Read more ...
West Virginia
State officials are most likely looking to contract with other states, probably Delaware. It may happen as soon as 2014. Read more ...
Wisconsin
The Indian casinos have yet to show their hand as to where they stand on online poker. There is no legislative chatter concerning online poker rooms. Read more ...
Wyoming
States Where Internet Gambling Is Legal
Lawmakers here are resistant to any form or gambling expansion, including online poker. If recent history is correct, online poker has a tough fight here. Read more ...