Gaming and gambling in the United States have undergone a great boom in recent years. During the past decade, most states have expanded legalized gaming, including regulated casino-style games, sports betting, and lotteries. There has also been an explosion in opening Native American casinos, and the popularity of online gambling in the US has increased exponentially.

Delaware Online Gambling Laws Delaware was the first state to pass legislation regulating online gambling. Nevada and New Jersey soon followed suit. While Delaware was the first state to pass the required legislation, Nevada beat it to become the first state to offer state-licensed online poker. 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. The United States of America has regulated the sphere of legal gambling with a number of laws and acts. Each of these addresses a specific sphere of the practice, and can be applicable to only select states of the union. United States law enforcement authorities, at both the state and federal levels, have increased enforcement of criminal and civil forfeiture laws against those openly violating this country’s online gambling laws. Citizens and foreigners – passing through the United States while traveling – have been arrested in these crackdowns. 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.

Decades ago, gambling used to be illegal almost in every part of the continental US, except for Nevada and New Jersey. However, as time flew by, more and more states have made various types of gambling legal, ranging from Indian casinos, bingo and poker rooms, off-track horse race betting, and more. While some states have approved certain types of gambling, other types have remained “illegal”, so to speak, like online gambling. Almost all states have laws that ban at least some form of gambling.

Understanding US gambling laws is not only important for those involved in the industry, but also for average gamblers who want to know whether he or she can start a fantasy football league, a home poker game, or an NCAA tournament betting pool at the workplace.

As of this writing, a lot of things have changed in the US gambling laws. What was once considered illegal on a federal level is now being made legal by the individual US States, provided that casino operators, and in some cases online gambling operators, apply for the necessary permits and licenses within the jurisdiction in which they wish to operate. If gambling was only allowed in Vegas and Atlantic City before, now states like Colorado, West Virginia, Indiana, Iowa, and Pennsylvania are also coming around, with more and more US states following suit.

Federal Gambling Laws

Below you’ll find links to various U.S. Federal Gambling Laws.

• Unlawful Internet Gambling Enforcement Act. This law applies to online gambling operators accepting financial instruments to fund accounts for players. including online casinos.
• Wire Act of 1961 (See also: Wire Act Violation: Internet v. Phone)

What Online Gambling Is Legal In The United States

Additional Federal Statutes

Transportation of Gambling Devices Act of 1951.

In 1951, Congress enacted the Transportation of Gambling Devices Act. [236] The Act, more commonly known as the Johnson Act, [237] which has been amended several times during the intervening years, makes it unlawful to knowingly transport a gambling device to a state where such a device is prohibited by law. [238] The manufacturers and distributors of gaming devices for interstate commerce must register each year with the United States Department of Justice, and the devices must be appropriately marked for shipment. [239]

(a) The term “gambling device” means–

(1) any so-called “slot machine” or any other machine or mechanical device an essential part of which is a drum or reel with insignia thereon, and

(A) which when operated may deliver, as the result of the application of an element of chance, any money or property, or

(B) by the operation of which a person may become entitled to receive, as the result of the application of an element of chance, any money or property; or

(2) any other machine or mechanical device (including, but not limited to, roulette wheels and similar devices) designed and manufactured primarily for use in connection with gambling, and

(A) which when operated may deliver, as the result of the application of an element of chance, any money or property, or

(B) by the operation of which a person may become entitled to receive, as the result of the application of an element of chance, any money or property; or

(3) any subassembly or essential part intended to be used in connection with any such machine or mechanical device, but which is not attached to any such machine or mechanical device as a constituent part. [240]

The interstate shipment of hardware or software for use in connection with an Internet or Interactive gaming system may trigger the Johnson Act, as well as the Interstate Transportation of Wagering Paraphernalia Act discussed above. [241]

Bank Records and Foreign Transaction Act of 1970.

In 1970, Congress passed the Bank Records and Foreign Transaction Act, [242] which is better known as the Bank Secrecy Act (BSA). [243] The BSA required “financial institutions” to report all currency transactions greater than $10,000 in effort to fight money laundering. This obligation was first limited to just banks. In 1985, the United States Treasury Department extended the requirement to casinos through the adoption of regulations. [244] Nevada casinos enjoy an exemption from the CTR reporting requirements of the BSA. [245]

Internet or interactive casinos will certainly be subject to some form of currency reporting requirement whether it is the BSA or Nevada Gaming Commission Regulation 6A, or both.

Money Laundering Control Act of 1986.

In 1986, Congress enacted the Money Laundering Control Act, [246] codified at 18 U.S.C. §§ 1956, 1957. Section 1956 applies to the knowing and intentional laundering of monetary instruments. [247] Section 1957 pertains to monetary transactions involving property that is “derived from specified unlawful activity,” which includes “racketeering activity” under RICO. [248]

Electronic Communications Privacy Act of 1986.

In 1986, Congress enacted the Electronic Communications Privacy Act (ECPA), [249] codified at 18 U.S.C. § 2510 et seq. The legislation amended Title 18 of the United States Code to extend the prohibition against the unauthorized interception of communications from wire and oral communications to “electronic communications,” which are defined as:

“electronic communication” means any transfer of signs, signals, writing, images, sounds, data, or intelligence of any nature transmitted in whole or in part by a wire, radio, electromagnetic, photoelectronic or photooptical system that affects interstate or foreign commerce, but does not include–

(A) any wire or oral communication;

(B) any communication made through a tone only paging device;

(C) any communication from a tracking device (as defined in section 3117 of this title); or

(D) electronic funds transfer information stored by a financial institution in a communications system used for the electronic storage and transfer of funds. [250]

The term “intercept” means “the aural or other acquisition of the contents of any wire, electronic, or oral communication through the use of any electronic, mechanical, or other device.” [251]

ECPA provides exceptions for the law enforcement to intercept communications where either (1) law enforcement is a party to the communication, or (2) where one of the parties to the communication has given prior consent to such interception. [252] The Nevada Gaming Control Board and Nevada Gaming Commission could take advantage of this exemption and be excluded from the reach of ECPA either through the promulgation of a regulatory provision (i.e., that licensees will permit the Board and Commission to monitor all electronic communications with patrons) or by imposing conditions on the licenses o f operators of Interactive gaming.

References

Federal

• Code of Federal Regulations: Title 25, Chapter 3: National Indian Gaming Commission, Department of the Interior
• Proposed Internet Gambling Prohibition Act of 1997 (not passed)

Federal Judicial Decisions

• AT&T Corporation v. Coeur d’Alene Tribe, 295 F.3d 899 (9th Cir. 2002)

Other References

• Joel Michael Schwarz, The Internet Gambling Fallacy Craps Out, 14 Berkeley Tech. L.J. 1021 (1999).
• “14 Charged in Internet Betting” (Washington Post, March 5, 1998)
• General Accounting Office’s Overview of Internet Gambling Issues

• Year California Regulated Gambling: Poker (1850), Horseracing (1933), Lottery (1984), Casinos (1992)
• Estimated Tax Revenue from Gambling: $280 million
• Estimated Gambling Revenue (from casinos): $1.3 billion from slots and card clubs; Non-taxed tribal gaming unknown
• California Gambling Age: 18 for lottery and bingo, 21 for casinos and racing
• Smoking ban: Smoking not permitted indoors except at tribal casinos, which are not covered by state smoking bans.
• California Online gambling: Horseracing is the only form of legal online gambling

California gambling has a long and complicated history. It is home to some of the largest poker rooms in the world. There are also more than 60 Indian California casinos. Poker is not considered gambling, according to the state constitution and future court rulings. Horse racing dates back to the Great Depression. There is also a state lottery and charitable gaming. The California Legislature is currently discussing the expansion of legalized gambling in the state. Online poker, sports betting, and daily fantasy sports are all segments under consideration.

With such a large amount of California casinos and poker rooms, you can look through our map of the top California casinos.

Paying Gambling Taxes in California

Do you have to pay taxes on your gambling winnings? Yes! OnlineUnitedStatesCasinos has gathered everything you need to know about paying taxes on your gambling winnings straight from a Certified Public Accountant. For more information please visit our exclusive Gambling Taxes article.

Types of California Online Gambling Allowed

United States Online Gambling Laws 2020

The only legal California online gambling according to the law is horseracing. TVG is the main provider in California. It operates many simulcasts betting sites in the advance deposit wagering industry in the state. Other major providers accept Californians, including TwinSpires and BetAmerica.

Daily fantasy sports site’s like DraftKings, FanDuel, and Yahoo! accept California players. These companies claim an exemption under California’s skill game laws. No action by the state has questioned this opinion.

There have been attempts to legalize online poker. The potential market participants cannot agree on the terms to move the idea forward. A bill has died in California every year in the legislature since the late 2000s because all sides care unable to come to a compromise. Some tribes do not want the horseracing industry or PokerStars, the largest poker site in the world, involved in California gambling. Other major players partnered with PokerStars fight to approve them, creating an impasse.

Types of California Live Gambling

• Slots: Yes
• Blackjack: Yes
• Poker: Yes
• Craps/Roulette: No
• Horses: Yes
• Lottery: Yes

There are many options that California gambling has to offer. Horseracing is legal. It is operated through pari-mutuel pools. Bettors can wager on live races or one in a race book at the track.

The California Lottery was created to fund education. Instant tickets and lotto drawings are available to players. Bingo and raffles are permitted through registered charities.

Card clubs date back generations in California. This is where poker is played. Card games traditionally considered to be banked by the house were later added. California card clubs use an unusual twist in table games. Blackjack, Pai Gow Poker, Pai Gow Tiles, and others are banked by propositional players. Others at the table have the ability to bank a hand on their turn.

There are currently over 150 California casinos operating today, most of them thanks to their card and poker rooms.

Gambling Federal Law

California Gambling Laws

All forms of California gambling laws must be approved by voters through a constitutional amendment. Every form of legal gambling in California went through this process that includes a statewide referendum. Most forms of illegal gambling are guilty of a misdemeanor.

Horseracing was the first form of betting permitted in California. Bets enter a pari-mutuel pool. Bettors may also participate in off-track betting at race books. These must be located at California racetracks. Racing is regulated by the California Horse Racing Board.

The California Lottery was created to fund public schools. It is permitted to sell scratch-off tickets for instant games and lotto tickets that involve number drawings. The California Lottery is permitted to enter interstate lotto drawings that include Powerball and Mega Millions.

California permits charities to operate games of chance. The proceeds may not exceed 20% of the prize pool or $2,000, whichever is greater. Only volunteers may operate the game. The games may not be spread in a commercial establishment, even if operated by the charity. There can be no commercial influence in charitable gaming. Charitable games may be operated by Native American reservations.

Card clubs are legal throughout California. The roots of this business date back to poker. Operations expanded to casino games that use cards over the years. Stud and draw games were the original offerings of California card clubs. Pan, Pai Gow Tiles, and Pai Gow Poker were other games popular in California card clubs in the early days. Baccarat, blackjack, and other games that are typically banked by the house emerged in the 2000’s when California casinos started to pop up.

The card club games that are not traditionally poker have a California twist. The house may not bank bets in card clubs. This created what is known as a prop banker. Players often refer to this person as the corporation. The prop banker pays a commission to the house for its action. Any player may also book the action in turn. Like prop bankers, a player that assumes the role of the house for a hand must pay the house commission from the play. Some card clubs frown upon players taking an active role in banking the action but it is perfectly legal.

California casinos operated by Indian tribes may offer slots, video poker, live poker, off-track betting, bingo and table games. The difference is that California casinos do not have to pay taxes on games permitted at card clubs, charities or racetracks. There are also different rules with table games that make the atmosphere closer to that of Las Vegas. Craps and roulette are not legal in California. There are unique alternatives to these games that use cards and machines instead of standard dice and wheels.

List of California Casinos

There are more than 150 casinos in California between the card clubs and reservations. Most are located in Southern California near San Diego and Los Angeles. The largest card clubs are Hustler, Bicycle, Commerce, and Hawaiian Gardens. These are all near Los Angeles. Large casinos in Southern California include Morongo, Pechanga and Harrah’s Rincon.

Most residents are no more than a half-hour drive of a card club or tribal California casino. All major cities have somewhere to play poker. The number of California reservations means that slots and video poker are never farther than a 30-minute drive. These California casinos offer players all of the same services and games that you may find in Las Vegas or Atlantic City.

Online Gambling Laws Usa

There are many California casinos and poker rooms spread throughout the state. This is great for poker players, as the locations and websites are found below.

There are seven live horseracing tracks in California. The major venue is Del Mar Racetrack. Santa Anita and Fresno Race Track are others. Each offer live and simulcast racing.

California Gambling History

Poker has always enjoyed an exemption under California gambling law. It is not considered gambling under the California Constitution.

Voters approved Proposition 5 on June 27, 1933. This legalized pari-mutuel horseracing in the state. The exacta was pioneered at the Hollywood Park track in 1971. Off-track betting became legal in 1985.

Voters approved a constitutional amendment in November 1983 that created a state lottery. The top two lottery retailers are located along the Nevada border. One is just across the state line from Primm, NV. This gives access to Las Vegas gamblers about 45 miles away. The second highest grossing lottery retailer is convenient to Reno and Lake Tahoe players. Nevada does not have a competing state lottery.

What States Are Legal For Online Gambling

Proposition 1A approved tribal casinos in California in November 2000. This permitted slots and video poker for the first time in the state. Gaming compacts between the tribes and the governor.

Online poker proponents have tried to legalize the game every year since the late 2000’s. Only online poker has been proposed. Casino games are not a part of any online gaming expansion proposals.

There have also been attempts to legalize sports betting. There has been little progress on that front. Sports betting expansion is specifically prohibited under the federal Professional and Amateur Sports Protection Act. Daily fantasy sports are experiencing more traction in the state legislature. A bill that would legalize and regulate the game first passed out of committee in January 2016.

United States Online Gambling Laws

California Casinos & Gambling FAQ

There are more than 100 poker rooms in California.

Online poker is not legal in California. Bills have failed every year in the legislature this decade.

Dice games are illegal in California. Some reservation casinos offer California Craps where cards are used in place of dice.

No, but video versions of the game are considered allowable slots when on tribal land.

Sites like DraftKings and FanDuel assert that daily fantasy sports are legal in California. A bill that would regulate these sites is circulating the state legislature.

The only form of online gambling explicitly legal in California is off-track betting on horse racing.

United States Online Gambling Laws Against

Card clubs are permitted to offer poker and card games that are not house banked. Native American casinos may spread these games, as well as slots and video poker.

California does not permit card clubs to act as the house that banks casino games. Card clubs employ outside prop bankers. These people book the action and pay a commission to the house on the action. Other players may book action when the button is placed on their spot at the table.

This is another name for the prop banker in a California card club.

The California Lottery was approved by voters in 1983.

The California Lottery sells scratch-off tickets and lotto drawings. These include Powerball and Mega Millions.

The minimum California gambling age is 18 for lottery and bingo, and 21 for casinos and racing.