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USA Online Casino License

Gambling in the United States of America (USA) is not prohibited by law at the Federal level, however, each State has the right to establish its own Gambling Laws. Online Casinos, Sweepstakes, Bingo Halls, Poker Rooms or Online Slot Machines have only been legalized in one form or another in 10 out of 50 States. Local regulators establish the licensing process and the list of permitted games. In Utah and Hawaii there is a complete ban on any form of gambling at the State level.

New Jersey Casino Control Commission
New Jersey Casino Control Commission
United States
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Short Information

Online casino license

Issued locally

Laws

  • The Interstate Wire Act;
  • The Unlawful Internet Gambling Enforcement Act (UIGEA);
  • Indian Gaming Regulatory Act;
  • State Regulations.

Tax

Taxes and fees are set at the State level

Penalties for players

Penalties for participants in illegal gambling are regulated by State regulators

Fines for illegal gambling

  • A fine of 10,000 USD.
  • Imprisonment for up to 2 years.

Minimum player age

21 years

Online casino website languages

English

Payment Methods

ACH Payment, PayPal, Cash at Cage, Play+, online banking

Cards: Visa, Maestro

Features of Federal Legislation

The US Interstate Wire Act [1] (hereinafter the Law), was passed in 1961 and prohibits wagering or betting on sports events through the use of communications. The ban applies to both foreign and American organisations.

In accordance with the rules of the Grid Law, it is possible to place bets within the same State, but operators are not allowed to accept a bet from a player that lives in a neighbouring State. For violation of the provisions of this Law, license holders are subjected to a fine of $10,000, imprisonment for up to two years, or both.

In 2011 the Ministry of Justice promulgated that online entertainment not related to betting, or betting on sports or events, is not within the competence of this Law. However, the ministry's opinion changed dramatically in 2018.

Several court decisions of various instances have already been issued regarding the breadth of the distribution of the legislative act, but the final one has not yet been adopted. In addition, the US Supreme Court has not yet ruled on this issue.

Another US federal law The Unlawful Internet Gambling Enforcement Act [2] (UIGEA)which has been in effect since 2006, did not explicitly ban the use of the Internet for entertainment.

This Law:

  • Prohibits financial transactions involving online entertainment service providers.
  • Establishes a list of payments to be blocked.
  • Regulates the procedures for verification and identification of transactions.

However, it does not prohibit players from placing online bets.

In the number of prohibited transactions, the Act does not include betting and betting on virtual sports. The Law does not specify the status of State lotteries or the acceptance of interstate bets on horse racing.

Indigenous Games: Legislation

The Indigenous Peoples of America are key players in the US gambling market. The Indian Gaming Regulatory Act [3] was adopted in October 1988. It Allows:

  • to create a legislative framework for the functioning and regulation of indigenous games
  • to organize and define the powers of The National Indian Gaming Commission [4] (NIGC);
  • to protect gambling business as a means of generating income for the tribes
  • to stimulate the economic development of Indian tribes
  • to protect enterprises from negative influences.

According to this Law, entertainment is divided into three classes:

  1. Traditional draws of Indian tribes
  2. Bingo and its varieties and card games between participants, excluding slot machines and the possibility of remote betting
  3. Casinos (roulette, blackjack, craps, slot machines) and other entertainment not included in the first two classes. It also includes the possibility of organizing gambling through communications.

The issuance of permits or licenses for the first two classes is the responsibility of the NIGC. The third is limited by State law.

To open a fully-fledged casino, tribes need to negotiate with local authorities and take into account the interests of both parties. NIGC-licensed establishments operate in 30 states.

How to get a License for an Online Casino in the USA

Online forms of gambling are available in several US states. Each district independently chooses the permitted forms and procedure for issuing a license for Internet gambling service providers.

State

Gambling regulator

Types of allowed casino games

California

California Gambling Control Commission [5]

Licenses are issued for social casinos with slot machines and table games.

Players can get prizes in virtual coins or play for fun with points.

Delaware

The Division of Gaming Enforcement (DGE) [6]

Since 2012, Delaware has legalized online casinos, lotteries and poker.

Illinois

Illinois Gaming Board [7]

Allows online casinos to provide slot machine services for entertainment purposes.

Since 2019, Illinois residents are allowed to place online sports bets.

Iowa

The Iowa Racing and Gaming Commission [8]

The license is issued for resources that allow you to place virtual sports bets on the Internet.

Nevada

  • The Nevada Gaming Commission [9];
  • The Nevada Gaming Control Board [10].

Provided to operators of licenses to open online poker rooms.

New Hampshire

  • The Gaming Regulatory Oversight Authority [11];
  • The New Hampshire Lottery [12].

Licenses are issued for:

  • online casino (slot machines, blackjack, craps, roulette, card games)
  • instant and traditional lotteries
  • bets on horse racing and dog racing
  • poker on the Internet

New Jersey

New Jersey Casino Control Commission [13]

The licensed websites offer online poker and traditional casino games to visitors.

Pennsylvania

The Pennsylvania Gaming Control Board [14]

Has been issuing licenses since 2019 for interactive casinos with traditional games, poker, slots and sports betting.

Rhode Island

The Gaming and Athletics section of The State Rhode Island Department of Business Regulation [15]

You can get a license for sports betting using mobile apps.

West Virginia

The State Lottery Commission [16]

In July 2020, the first online casino with an official gambling license was launched in West Virginia

Traditional gambling, poker and online sports betting are allowed.

The development of online gambling in the United States was facilitated by the decisions of the Fifth Court of Appeal of Louisiana in 2018 and the US District Court issued in June 2019. In the conclusions it was said that the Federal Law on Networks does not apply to online gambling.

An additional impetus was the repeal by the US Supreme Court of the Professional and Amateur Sports Protection Act (PAPSA) in 2018. This decision allowed state authorities to establish licensing rules for sports and online betting.

In the United States, licenses for online bookmakers began to be issued in: Colorado, District of Columbia, Illinois, Indiana, Michigan, Iowa, Mississippi, New Hampshire, New Jersey, Oregon, Pennsylvania, Rhode Island, Tennessee and West Virginia.

USA: Online Casino Regulation

The laws of each State limit the activities of local regulators to those that fall within well-defined boundaries. Each gambling commission or department is guided by a base of local regulations. However, all regulatory bodies are subordinate to the US Department of Justice.

To obtain licenses for online casinos in multiple states, operators need to check the list of permitted entertainment and obtain permission from the appropriate regulatory authority. At the moment, operators have no right to launch a casino that has the ability to accept bets from players from all over the United States.

Casinos that hold International Licenses are not permitted to operate within the United States. However, players are not limited in their ability to place bets or participate in gambling activities from foreign service providers.

The lack of a unified position and clear legislation in the gambling field does not allow the United States to streamline the activities of online operators at the interregional level. Therefore, the opportunity to obtain a single license for online games from US operators is unlikely to appear in the foreseeable future.

Protecting Players' Rights and Treating Gambling Addiction

Players' rights are protected by the appropriate state regulators. The regulator establishes the procedure for submitting and processing applications that have been received from visitors to license holders premises.

The main problem of arbitration in the United States is the complete vulnerability of players to the actions of illegal gambling platforms. At the local level, the relevant legislation is being adopted to exclusively permit these types of activities. This does not allow suppliers to be punished for illegal actions or to prevent players from participating in illegal sweepstakes.

The American Gaming Association [17] (AGA) has become a kind of information centre for the protection of players' rights. The largest software developers, operators, service and financial companies that participate in the US gambling market, have become AGA members.

The Stop Illegal Gambling [18] portal, created in 2015, under the auspices of the AGA, aims to identify illegal transactions with the help of the country's leading law enforcement agencies. The resource also operates the Internet Crime Complaint Center [19] (IC3).

Both private and public clinics throughout the United States are involved in the fight against gambling addiction. There is no unified all-American register of persons suspended from the game. However, in states where online casinos and betting are allowed, local authorities oblige operators to provide players with a self-exclusion option.

National Council on Problem Gambling
National Council on Problem Gambling
730 11th St, NW, Ste 601 Washington, DC 20001
American Gaming Association
American Gaming Association
Suite 700 Washington, D.C. 20001