Sports Gambling Legislation By State

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Sports bettors from Louisiana could be placing legal sports bets soon, pending adoption of legislation to implement the recently passed sports betting referendum. Legislation to end the prohibition of sports betting has been proposed to Georgia state lawmakers, but no legalization bills have been voted into law. Sports betting legislation tends to be enacted by state legislatures, though ballot initiatives posing the question directly to voters are becoming an increasingly common road to legalization. The timeline for your state likely depends on the local political climate and any peculiarities in the lawmaking process.

In the United States, both the Federal government and individual state governments are responsible for regulating gaming within their jurisdiction. The Federal government has designated some forms of gambling as prohibited within the US and has created laws that are non-negotiable in the regulation of such prohibited activities. On this subject, the Federal government may outlaw any form of gambling and states must abide by their law as Federal regulation will always trump state laws. It is important to any country’s gambling laws in order to stay within the country’s legal guidelines.

States, however, are permitted to maintain their own regulations and prohibitions on acceptable forms of gambling as dictated by Federal regulations. So long as state laws align and do not challenge or disobey Federal gaming laws they are free to control, oversee, and manage to gamble within their state. Usually, states create and employ gaming control boards or special gaming commissions to supervise gambling activities within their state borders. State laws are subject to their specific state and do not have jurisdiction or power to control laws in other states. Therefore, gambling laws can differ greatly between states.

Sports Gambling Legislation By State

Active Federal Laws And Regulations In The United States That Affect Online Gambling

The United States maintains several significant federal gambling laws that greatly affect how gambling is regulated and permitted throughout the nation. Each law provides its own in-depth explanation, reasoning, and history behind its creation and implementation. On this page we summarize the laws, however, to gain a comprehensive understanding of the background of each federal law simply follow the highlighted links to resource guide that provides a greater depth of explanation.

Federal Wire Act – To combat prolific organized crime surrounding illegal bookmaking, then President John F. Kennedy enacted this law which effectively outlawed betting businesses from using phones to accept, place, or transmit interstate or foreign wagers on sports. At the time, this federal law greatly minimized domestic mafia bookmaking operations. The law has recently been interpreted by the US Department of Justice as effectively prohibiting U.S. based online sportsbooks from operating within the nation’s borders. Therefore it is a crime to operate an online sportsbook on US soil. The law does not prohibit USA residents from engaging in online sports betting at a legitimately licensed and regulated sportsbook that is legally operating outside of the United States.

DOJ Formal Opinion – In 2011, the DOJ and the Office of Legal Counsel released a memo that explained their formal interpretation of the Federal Wire Act that countered against the previous position the Criminal Division of the DOJ had taken. The memo stated that their prohibition on US-based Internet gaming only applied to online sports wagering. This clarification effectively allowed U.S. states to determine their destiny regarding online gambling as long as it doesn’t entail betting on sports. Therefore online casinos and poker sites are now legally permissible should a state decide to legalize these forms of betting entertainment.

UIGEA – This federal law is specifically aimed at online gaming operators and online gaming payment processors to curb illegal financial crimes, fraud, and money laundering through internet gaming activities. Financial institutions were thus barred from permitting direct transactions to online gaming service providers and given specific regulations on how they may process such transactions. In essence, the law provides regulatory oversight regarding how the online gambling transactions of USA residents are processed. The law does not make online gambling illegal.

PASPA – Once acted as the governing law over the prohibition of brick and mortar sports wagering throughout the US, with the exception of four exempted states. These four states had already implemented some type of active sports wagering or had pending sports legislation in place by a specified deadline and therefore were deemed exempt from the restrictions enacted by PASPA. The exemption was also offered to New Jersey due to their thriving Atlantic City gambling entertainment market, however, the state failed to take advantage of this option and allowed the deadline to pass. However, in 2018 SCOTUS reviewed PASPA and on May 14th ruled it unconstitutional and void. This law is no longer effctive in the land of the free.

RAWA – A preemptive bill yet decided upon intends to rewrite the Federal Wire Act of 1961 to extend prohibitions to include all forms of online gaming. If passed, this law would violently impact the current and future USA online gambling market as it does not include carve-outs for existing state-regulated online gambling platforms such as those initiated in Delaware, New Jersey, and Nevada – effectively making all online gaming in the USA illegal immediately.

State Gambling Laws

Individual states maintain the authority to allow or prohibit any form of gambling within their borders that are not expressly prohibited by US federal gambling laws. Due to the differing climate of states and their individual positions regarding legal forms of gambling entertainment, it is crucial to provide up to date information on what each US state permits and forbids in order to deliver the most accurate information for our readers. Therefore, we have specialized state focused pages to deliver the most current information on gaming laws and permissible gaming entertainment within their borders. Not only that, we provide here a state-specific gambling entertainment bill tracker to keep Americans updated on upcoming legal forms of betting entertainment in their state and inform them of newly enacted or retracted gambling laws.

Who Regulates Gambling in The United States?

At the federal level, there are multiple agencies that have a say in the regulation of U.S.A. gambling, these figures include the Department of Justice, the Federal Bureau of Investigation, the US Supreme Court, the House of Representatives, Congress, and even the President. All of whom communicate with one another and utilize the US constitution and precedent laws to determine the eligibility and legality of pending gambling legislation and regulations. At the state level, senators and congressmen in government positions lobby, direct, and discuss possible gaming legislation to either generate, permit, and regulate various legal forms of gaming entertainment in their state.

However, state governments often create sanctioned oversight boards such as Gaming Control Boards or Gaming Commissions to authorize, supervise and regulate legalized gambling activities within their state. Certain states in the USA may only have limited forms of legal gaming and therefore consolidate administrative power to existing commissions such as Lottery Commissions that are then tasked to regulate lotteries and limited forms of gambling such as charitable gaming in this case.

Forms of Legal Gambling in The United States

There are a variety of legal forms of gambling within the United States, however, these permitted venues are not uniform across state lines and players interested in engaging in these activities should check with local state laws to ensure lawful participation. As identified by the American Gaming Association the following forms of gaming entertainment are legal in the US: brick and mortar commercial casinos, tribal-run casinos, public and private poker rooms, bingo halls, various charitable gambling venues offering games such as raffles, pull-tabs, paddlewheel, punchboards, and casino nights, table games, on-track and off-track pari-mutuel wagering on horse racing, exotic wagering, bookmaking, daily fantasy sports tournaments, skill-based tournaments such as billiards, darts, and fishing, and lotteries.

Forms of Legal Online Gambling in The United States

Within the U.S.A. there are legal forms of online gambling that citizens may participate in, however again, the permissibility of online wagering is not equal across state borders as individual states hold the authority to allow or prohibit various types of online gambling for their state residents. With this being said, a number of US states have permitted the legalization of online gaming platforms through the use of iGaming services providing online casino, poker and lottery initiatives that are thriving. As of this writing, Delaware, New Jersey, and Nevada all have state-based online poker available, and both Delaware and New Jersey also offer state-regulated online casino gambling as well.

At this moment in time, individual states are not eligible to provide state-regulated sports betting online due to current federal legislation blocking such access. Regardless, nearly all USA residents may participate in legally licensed and regulated offshore online sports betting sites that remain a legal online avenue for USA players.

What Is The Legal U.S. Gambling Age?

Generally, gambling is legally accessible to individuals above the age of eighteen. However, every state has its own laws on the minimum legal age for gambling within their borders and often it can vary by game type. Normally, lottery gambling, charitable gambling, parimutuel wagering and bingo are available to young adults who are at least eighteen. Often times poker and casino gambling impose a requirement for individuals to be at least twenty-one in order to participate. These norms vary by state.

What Happens If I Violate A US Gambling Law?

Nearly all states criminalize gambling in some form and contain various penalties and punishments set for engaging in illegal forms of gambling. Violations of any US gambling laws, whether federal or state, can lead to imprisonment, hefty fines, and/or probation. Each violation case is different, and penalties vastly change based on the state or jurisdiction the violation took place in and circumstance. Imprisonment can vary based on a misdemeanor or felony offense in which case can result in up to a year in county or local jail for misdemeanors and a year or more in prison for felony offenses.

Criminal cases involving organized crime and professional gambling can result in up to a 10-year sentence in federal prison or more. Fines can vary on a state by state basis, generally, misdemeanor fines can range from $100 up to a $1,000 or more. Felony fees are relatively handled the same way and they can reach up to $20,000 or more. Fines can be separate punishments or in addition to jail or prison sentences. Probation sentences often ask offenders to serve 12 or more months either in a gambling addiction treatment facility or refraining from participating in gambling activities alongside with judge recommendations for community service or similar.

Is Illegal Gambling a Problem in the United States?

In the past, illegal gambling rings were run by threatening mobster figures who would often commit violent crimes against individuals and families of persons with unpaid debts. Today, the seedy dark figures of the past are no longer so prevalent but that is not to say that there are no underground gambling activities taking place in the US. In fact, several cases of violent threats and acts occur to this day due to gamblers placing wagers and falling into debt with the wrong type of individuals.

Illegal gaming remains a huge black-market business in the U.S. and every day individuals can place illicit wagers through bookies, backdoor casinos, and illegal online portals while operators, owners, and bookmakers take their cut of this lucrative business. No one is sure how much money is exactly wagered illegally but some estimate that the numbers are close to $88 billion a year. Other than the issue of states being unable to tax this money and legal venues losing money to illegal platforms, the greater issue of possible gambling addiction remains the most threating as addiction can lead to serious problems concerning an individual’s financial welfare, home-life, and possible crimes committed.

Which States Consider Gambling Illegal?

Gambling is wholeheartedly illegal in Utah and Hawaii, as they are well-known for their gaming prohibitions and strict anti-gambling laws. These two states have often reasoned that gambling would destroy their religious values, moral family structures, and harm their communities. Certain states that do not oppose gambling on moral grounds still limit gaming within their borders and only provide minimal gaming entertainment access; a move that often forces interested bettors into illegal gambling activities. One state in particular that engages in this type of limitations is Alaska, however, other states employ similar limitation tactics. These types of restrictions have driven the legal online gambling industry to gain momentum.

How Do I Know If I’m Gambling At An Illegal Destination?

Often a red flag for any gambler is the location of the said gaming site. Look around: is the setting of the business in a rundown location hidden from legal oversight? Do you have to enter through a special backdoor? Is the lighting poor, hygiene of the venue dissatisfactory, and do the patrons and staff give off a suspicious feeling? The one sure fire way to determine the legitimacy of any type of gambling business either offline or online is through their credentials. Legally sanctioned gambling businesses have no problem being transparent regarding their licensing, regulatory oversight and compliance certifications.

All licensing credentials should reflect the name of the agency or gaming commission that issues licensing for any given jurisdiction, and can easily be verified through the relevant regulatory body. If you find yourself in contact with a gambling business of any kind that acts defensive or is elusive when you attempt to question their credentials, you can speculate that their legitimacy is questionable. Illegitimate gambling businesses, which in turn are illegally operating, are usually focused on predatory acts, such as theft and fraud. We strongly caution against sharing any information with any gambling business that you are not sure is operating legally within the industry.

Who Do I Contact About Illegal Gambling Operations?

Once you have come in contact with an illegal gambling operation that attempted to entice you to wager on or participate in illicit activities, contact a lawyer, report the illegal operation at ic3.org, and follow up with filing a report with the FBI, local law enforcement, the American Gaming Associations Illegal Gambling Advisory Board, and/or Internal Revenue Criminal Investigation Department.

Help With Gambling Addiction In The United States

The state of Washington became the 21st state to legalize sports betting on March 25th, 2020 when Governor Jay Inslee signed a new sports betting bill into law. Washington was the first state in 2020 to legalize sports betting.

How Sports Betting Became Legal in Washington

In the past, the state of Washington had some of the harshest anti-gambling laws. When the PASPA ruling back in 2018 occurred, many expected Washington to be one of the last wave of states to legalize sports betting. Now just two years after the May 2018 PASPA ruling, the state of Washington has now legalized sports betting.

The bill that legalized sports betting, HB 2638, made its way through legislation rather quickly. The bill’s sponsor, Representative Strom Peterson (D-Edmonds) was hoping to push the bill quickly through the shortened legislative session and his wishes came true.

HB 2638 began to move its way through the legislation with relative ease, passing by fairly solid margins. The bill managed to make its way through to the governor just in time before the end of the Coronavirus-impacted legislative session. The bill passed in the house 84-14 and 34-15 in the Senate. Typically the bill would have gone to a voter referendum in November that would have required a 60 percent majority vote but due to an emergency provision in the bill, it was able to bypass that step.

Governor Jay Inslee signed the bill into law on March 25th, 2020.

What Sports Betting Will Look Like in Washington

While sports betting is now legal in Washington state, there are still plenty of restrictions. First off, the bill only calls for sports betting at the state’s tribal casinos. Sports betting will only be allowed to take place on tribal casino property, there will be no legal state-wide mobile betting in Washington, at least not at this time.

While the sports world is currently in a hiatus thanks to the current Coronavirus pandemic, this may actually be the best time for Washington to legalize sports betting. The state is still months away from launching any actual legal sportsbooks so this current hiatus doesn’t have much of an effect on Washington just yet. The tribes and the state of Washington still have plenty of negotiating in their state compacts before any sportsbooks can be opened. These negotiations could take months before anything is put into place.

Under the new sports betting law, wagers can be placed on both professional and collegiate sporting events. However, like some other states with legal sports betting, wagers on local collegiate events located in the state of Washington will not be permitted. A number of other states with legal sports betting have also restricted betting on collegiate events and collegiate teams located in their respective state.

The lack of legal mobile sports betting in Washington will have some benefit to neighboring state Oregon. Oregon, which is located on the southern border of Washington, has legal mobile sports betting. For Washington residents located in the southern part of the state, it may be more convenient for them to travel across state lines into Oregon to place bets from their mobile devices as opposed to traveling to tribal casinos within Washington to place bets. Some of those in Washington who are already traveling to Oregon to bet may also be less inclined to make the switch to betting in person in their home state.

Any way you look at it, Washington will certainly be losing a percentage of revenue to Oregon and possibly Idaho in the future if Idaho does, in fact, legalize mobile sports betting before Washington does.

As for the tribal sportsbooks in Washington, they are expected to range anywhere from full-fledged sportsbooks and lounges at some casinos to simple betting kiosks at others.

Assuming everything goes smoothly in Washington, residents could be betting on sports sometime this year. A realistic goal at this time would be by the start of the upcoming NFL season. Assuming there will be no delays from the Coronavirus issue, the NFL season will be starting September 10th. While it is possible, it is unlikely that Washington residents will be legally betting on sports in their home state anytime sooner than that. If anything, it is more likely that legal sports betting won’t launch in Washington until early 2021.

Issue With Legal Sports Betting and Washington Tribes

There are currently 29 federally-recognized tribal casinos in the state of Washington. Like we have seen in other states, such as California, the tribes in Washington believed they had the exclusive rights to offer sports betting. Other gambling facilities in the state of Washington did not believe that was the case. Another belief that we have seen in other states with the same issue.

A major part of the reason that Washington tribes are the only ones that are able to offer legal sports betting is due to their heavy lobbying for this particular bill. Had they not have been given the exclusive rights to legal sports betting, they would have used their political clout to shoot down any bill that wouldn’t have given them that legal sports betting monopoly. In the past, Washington tribes have been very outspoken against gambling expansions in the state.

Of course, non-tribal gaming establishments in Washington are not happy with this exact sports betting bill passing. Racetracks, mini-casinos and card rooms were all hoping that sports betting would have been open to all legal gambling establishments in the state. They do not believe that tribes deserve to have a monopoly on sports betting in the state. One particular opponent of the bill, who believes the same, has already threatened legal action.

Maverick Gaming, who have recently purchased 19 of Washington’s 44 non-tribal card rooms, has been one of the biggest advocates of this bill passing. CEO of the Nevada-based Maverick Gaming, Erik Persson, argued earlier in the year at a public hearing that Washington would lose up to $50 million in tax revenue by not allowing sports betting to go beyond tribal casinos. Persson also believed that the only reason the emergency clause was added to the bill was that lawmakers knew that Washington residents would never approve the bill as it was proposed. He has even contacted Governor Inslee directly asking for him to veto the final version of the bill.

Legislation

Persson has vowed to spend up to $30 million on litigation, campaigning and anything else to block the bill from becoming law. He also believes that this tax-free monopoly to tribal casinos will endanger the jobs of nearly 2,200 employees at Maverick Gaming. So while Washington did pass a bill to make sports betting legal, there are still some hurdles in the way. Persson and other non-tribal gaming establishments in Washington will continue to try and get sports betting expanded in the state, which could lead to even more issues down the road.

FAQ

  • Is sports betting legal in Washington?

  • When will legal sports betting begin in Washington?

  • What are the sports betting laws in Washington?

  • Is mobile sports betting legal in Washington?

  • Are daily fantasy sports contests legal in Washington?

  • Is FanDuel Sportsbook coming to Washington?

    • Sports Gambling Legislation By State Legislature

  • Is DraftKings Sportsbook coming to Washington?

  • How many legal sportsbooks are there in Washington?

  • Do I have to be from Washington to bet in Washington?

  • Will I have to pay taxes on my sports betting winnings?

    • Frequently Asked Questions

    Is sports betting legal in Washington?

    Yes. Governor Inslee signed HB 2638 into law back on March 25th, 2020. Under the bill, sports betting is legal at tribal casinos located in the state of Washington. Once sportsbooks begin to open at these tribal casinos you will be free to bet legally in Washington.

    When will legal sports betting begin in Washington?

    Sports Gambling Legislation By State Government

    There is currently no timeline as to when legal sports betting will officially launch in Washington. The state and the tribes still have to negotiate their current compacts. A best-case scenario would be that sportsbooks launch in Washington before the start of the 2020 NFL season on September 10th.

    What are the sports betting laws in Washington?

    Bettors in Washington can make wagers on professional and collegiate sporting events. However, like a number of other states in the country, Washington residents will not be able to bet on local collegiate teams. The minimum gambling age is 18 or 21 if the establishment sells alcohol.

    Is mobile sports betting legal in Washington?

    No. The current sports betting law does not allow for mobile sports betting in Washington. Sports betting is only permitted on tribal lands that have a licensed sportsbook. It is possible that state-wide mobile sports betting could become legal in Washington in the future.

    Are daily fantasy sports contests legal in Washington?

    No. Washington is one of the most strict states in the country when it comes to daily fantasy sports. Arrests have been made in the past in Washington over daily fantasy sports. The state of Washington classifies DFS as a game of “chance”, therefore making it illegal.

    Is FanDuel Sportsbook coming to Washington?

    It’s unknown is FanDuel Sportsbook will attempt to enter the Washington market. There is no legal online sports betting or daily fantasy sports in the state. Therefore, if FanDuel were to enter Washington it would have to be as a partner of a tribal casino to operate their retail sportsbook.

    Is DraftKings Sportsbook coming to Washington?

    Just like FanDuel, it’s currently unknown if DraftKings Sportsbook will attempt to enter the Washington market. With the lack of DFS and online sports betting, if DraftKings were to enter Washington it would have to be as a partner of a tribal casino to operate their retail sportsbook.

    How many legal sportsbooks are there in Washington?

    There are currently no legal sportsbooks available in Washington. While sports betting is legal, no sportsbooks have been established yet. Sportsbooks won’t open in the state until after compacts between the state and tribes are negotiated. Once that happens, Washington could see as many as 29 sportsbooks throughout the state.

    Do I have to be from Washington to bet in Washington?

    No. You don’t have to be a resident of Washington in order to place a legal bet at a Washington sportsbook. As long as you are of legal age and are not breaking any other restrictions, you can place a legal sports bet in Washington regardless of where you live.

    Sports Gambling States

    Will I have to pay taxes on my sports betting winnings?

    Yes. As with any other state, Washington residents will be required to pay taxes on their winnings. Sports betting falls under gambling when it comes to taxes and you must pay taxes on gambling winnings to a certain extent. You can find more info at IRS.gov.

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