Is Online Gambling Allowed In Us

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*Is Online Gambling Illegal In Us
*Is Online Poker Gambling Legal In Us
Thousands of Americans gamble online. But is online gambling legal? We break it down to show you what you can do, what you can’t do, and what’s still up in the air.
*When it comes to legal online sports betting in the USA, things are changing fast. That’s because the US Supreme Court made a landmark decision to lift the federal ban on sports betting, paving the way for each state the authority to regulate its own sports gambling markets and laws.
*Legal online betting is quickly becoming a reality in the United States. Most US states have had legal online horse racing betting for several years now, but more recently we are starting to see individual states legalize additional forms of online betting such as casino games, poker, daily fantasy sports and lotteries.
However, when it comes to online gambling, the only form of it allowed in Nevada is online poker in designated poker rooms. They do have a legal WSOP site, but other online casino games are forbidden. In New York, the situation that deals with the question of whether or not online gambling is legal can be a bit ambiguous. 23.5.112(20) and 23.5.112(21) combine to define Internet Gambling and to construe it as a crime. 23.5.156 offers a misdemeanor penalty for any illegal gambling device or illegal gambling enterprise in which, ’A person who in an activity involving gambling offers or obtains money, property, or anything of value that does not exceed $750 in value.
by Katherine Butler
updated September 03, 2020 · 2min read
The legality of online gambling is ever-changing. But one thing is constant: it makes a lot of money. Online gambling industry makes an estimated $1 billion dollars annually. This is a huge business, and a lot of people have cashed in on it. But it has led to some ambiguous legal issues, as the legality of online gambling is constantly being challenged.
There are differences in the legality of making bets, taking bets, facilitating payments to casinos, and advertising on websites. And there are constantly new legal challenges. So here is a breakdown of the law on online gambling.Legal Forms of Gambling
There is no federal law against placing a wager online. So, you can legally place a bet online. However, a wager must not be placed on a site located in the United States. There is a small chance players might run afoul of state law, but there is little chance of prosecution. The only case cited where a person got into trouble with a state was in 2003. Jeffrey Trauman of North Dakota paid a $500 fine on over $100,000 of online sports bet winnings.
Sites that are set up outside of the United States are legal. Therefore, gambling on websites located in areas like Australia, the Caribbean, and Latin America is legal. Just be very clear that the site you are playing on is not based on U.S. soil.Definitely Not Legal Forms of Gambling
It is never legal to gamble on a website based in the United States. Also, if you are planning to operate an online gambling site, stay outside of the United States. You must also deal only with casino and poker wagers (not sports bets) from people in the US. And you cannot take bets over the phone from people in the United States.
Accepting online gambling advertising is also illegal. If you are a small publisher, you are less likely to be prosecuted, but why risk it? As of early 2009, only large and mid-size publishers had faced prosecution. In 2007, the three big search engines (Google, Yahoo, and Microsoft) each paid a fine for accepting online gambling ads, but did not face criminal charges. Other publishers, such as Esquire Magazine, have been warned by the government not to take online gambling advertising.
Facilitating the transfer of funds to online casinos is also a bad idea. As of 2006, it became illegal for American banks to process transactions originating from or directed toward any online gambling operator. Because of this, several sites then refused to take bets from American players. But as the law seems difficult to enforce, it has not turned the tide completely for American players.Still up in the Air
Advertisers who promote sports books in magazines and on billboards may or may not face prosecution. So far, sports books have never been scrutinized for advertising online. And online casinos, poker rooms, and sports books have never been prosecuted for buying ads.
Online casinos and operators still accept American players. And international financial parties have continued to process their transactions. The legality is always changing and there have been attempts to declare online wagering against the law, but for now, U.S. citizens who simply place bets online are in the clear.
Online gambling is all the rage lately, and between poker, casino games, and sports betting, you can wager on pretty much anything through your laptop or smartphone.
Even so, outside of the legal states of Nevada, New Jersey, and Delaware, the vast majority of those bets are placed through offshore websites operating illegally – unless you bet on horse racing that is.
While the federal government was waging war on major online betting sites like PokerStars and Bovada, playing the ponies over the internet was explicitly legalized on the federal level. But as is usually the case with the American legal system, understanding where and how you can place an online horse racing bet involves a tangled web of local statutes.
If you’re looking to legally bet on horse races from the comfort of home, the following primer includes everything you need to know on the subject.
You’ll learn about the history of horse racing law and how it’s been adapted for the internet age, complete with a detailed dive into the various Congressional acts that got us where we are today.
From there, look for the most current listings of the states where online horse betting is banned, and more importantly, the states where you can bet to your heart’s content from any internet-connected device. Must Read
Finally, to point you in the right direction, you’ll find a few of the most reputable online racebooks in the industry – including NASDAQ-listed companies and state-licensed sites.Intro to the Interstate Horseracing Act of 1978
Long before the issue of internet gambling could be envisioned, lawmakers on Capitol Hill were confronted with a precursor to the concept – interstate off-track betting.
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Up until 1970, Nevada was the only state to allow off-track betting, which occurs when bettors in one location wager on races taking place at a separate track. Television streams broadcast live footage of faraway races, enabling audiences in an off-track betting facility to bet and sweat the action without ever stepping foot inside the racetrack.
That all changed when New York moved to legalize off-track betting parlors in 1970, creating a big business in the Empire State by connecting residents to racetracks all over the country.
Soon enough, hundreds of off-track betting parlors – commonly known as OTBs in the industry – were sprouting up throughout New York City and the upstate area.
Before the dawn of the internet age, interstate off-track betting was the next best thing to an online racebook. Sure, you had to hoof it down to the nearest OTB parlor, but once you were there, you could wager on the morning race at Pimlico in Maryland, the noon event at Dover Downs in Delaware, and the nightcap from Monmouth Park in neighboring New Jersey.
Eventually, though, the local operators began to cry foul, claiming that interstate wagering siphoned money away from their racetracks and into the coffers of off-track betting facilities.
To address the increasingly rancorous debate, Congress stepped in by passing the Interstate Horseracing Act of 1978. This law aimed to clarify how proceeds generated from OTB wagers would be divided, and more importantly, whether or not individual states were obligated to allow interstate betting in the first place.
The Interstate Horseracing Act – which falls under Title 15’s regulation of trade and commerce within the United States Code – offers the following justification for Congressional oversight:
“(1) the States should have the primary responsibility for determining what forms of gambling may legally take place within their borders;
(2) the Federal Government should prevent interference by one State with the gambling policies of another, and should act to protect identifiable national interests; and
(3) in the limited area of interstate off-track wagering on horse races, there is a need for Federal action to ensure States will continue to cooperate with one another in the acceptance of legal interstate wagers.”
As the passage above makes clear, the Act was introduced to prevent one state from “interfering” with the gambling policies of another. In other words, when a state like New York opts to allow interstate off-track betting, other states do not necessarily have to allow New Yorkers to wager on local races.
Crucially, the Act also provided a concrete definition for what the term “interstate off-track bet” really means:
“(3) ‘Interstate off-track wager’ means a wager placed or accepted in one State with respect to the outcome of a horserace taking place in another state.”
At the time, with the internet still nothing but a twinkle in Al Gore’s eye, the Act and its definition was enough to regulate interstate off-track betting effectively. If two states both allow horse racing, and off-track betting along with it, residents of those states are free to place interstate wagers at licensed facilities – that’s fairly cut and dry.
But as we all know, the digital revolution changed everything in the late 1990s and beyond, connecting people from every state – and worldwide for that matter – along the information superhighway.Amendment to the Interstate Horse Racing Act Paves the Way for Online Betting
By the year 2000, with the Googles and eBays of the world rapidly transforming how society works, Congress was faced with yet another horse racing debate.
Bettors were logging online to place wagers on horse races everywhere, even in states that didn’t participate in off-track betting. Online racebooks based offshore were able to undercut their regulated competitors, offering rebates on losses to keep regular bettors coming back for more.
At the time, a federal law known as the Interstate Wire Act of 1961 still held sway over gambling activities. Under the Wire Act, bettors and bookmakers were prohibited from conducting business over the telephone, as this allowed for interstate wagering. Given the use of dial-up internet connections at the turn of the century, most legal scholars and lawmakers alike viewed the Wire Act as being applicable to online wagering as well.
But with racetracks and off-track betting parlors rapidly losing financial ground to offshore racebooks, Congress sought a remedy by clarifying the Interstate Horseracing Act of 1978.
In 2000, a short but powerful amendment (passage bolded below) was added to the Act’s definition of “interstate off-track betting,” expanding the activity to include pari-mutuel wagers placed via the internet:
“(3) ‘Interstate off-track wager’ means a legal wager placed or accepted in one State with respect to the outcome of a horserace taking place in another State and includes pari-mutuel wagers, where lawful in each State involved, placed or transmitted by an individual in one State via telephone or other electronic media and accepted by an off-track betting system in the same or another State, as well as the combination of any pari-mutuel wagering pools.”
And while the typically opaque legal language used doesn’t specifically mention “the internet” or “online” – opting for the vague “electronic media” instead – then Congressman Frank R. Wolf (R-VA) clarified the amendment’s intent. Wolf was a vocal critic of internet gambling during his tenure in Congress, and before the amendment (known as Section 629) was officially ratified, he warned colleagues that they were significantly expanding Americans’ right to wager on horseracing while online:
“I want Members of this body to be aware that section 629 of the conference report would legalize interstate pari-mutual gambling over the Internet.
Under the current interpretation of the Interstate Horse Racing Act in 1978, this type of gambling is illegal, although the Justice Department has not taken steps to enforce it.
This provision would codify legality of placing wages over the telephone or other electronic media like the Internet.”
Wolf’s opposition wasn’t enough to sink the amendment, however, and it was officially added to the Interstate Horseracing Act that year.
From that point forward, there has been no doubt that playing the ponies over the internet is completely legal within the United States – provided the individual state already allows interstate off-track betting.How the UIEGA Exemption Helped to Keep Online Horse Betting Legal
Between 2000 and 2006, internet gambling transitioned from an emerging concept into a multibillion-dollar industry.
Chris Moneymaker parlayed a PokerStars qualifier into $2.5 million at the 2003 World Series of Poker (WSOP) Main Event, while online sportsbooks like Bodog were rapidly expanding their reach to compete with Las Vegas’ legal action. And for millions of players from coast to coast, online casinos offered a quick and easy alternative to making that annual sojourn to The Strip.
By 2006, with massive amounts of money flowing from American wallets to offshore online gambling operations, Congress was compelled to act once more. With the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, federal lawmakers officially criminalized the operation of online casinos, poker rooms, and sportsbooks. Actually placing bets wasn’t a crime, but accepting those bets was now illegal – a move which forced reputable operators like PartyPoker to withdraw from the American market altogether.
Fortunately for the online horseracing industry, however, the prodding of lobbyists combined with a few sympathetic legislators representing racetrack-dense districts combined to create a carveout in the UIGEA.
The following passage from the UIGEA specifically exempts horseracing from the Act’s prohibition of online gambling:“(D) INTERSTATE HORSERACING. – ”(i) IN GENERAL. – The term ‘unlawful Internet gambling’ shall not include any activity that is allowed under the Interstate Horseracing Act of 1978 (15 U.S.C. 3001 et seq.).”
To strengthen that passage, Congress included a separate entry outlining the body’s “sense” on how online horse racing should be treated separately than other forms of gambling:
“(iii) SENSE OF CONGRESS. – It is the sense of Congress that this subchapter shall not change which activities related to horse racing may or may not be allowed under Federal law.
This subparagraph is intended to address concerns that this subchapter could have the effect of changing the existing relationship between the Interstate Horseracing Act and other Federal statutes in effect on the date of the enactment of this subchapter. This subchapter is not intended to change that relationship.”
Thus, while online poker players, sports bettors, and casino game enthusiasts saw their favorite pastime criminalized by the UIGEA, online horse bettors were in the clear.
On a final note regarding the UIGEA, the following passage does clarify that the exemption only applies to states where horseracing and interstate off-track betting is already legal:
“(ii) RULE OF CONSTRUCTION REGARDING PREEMPTION.— Nothing in this subchapter may be construed to preempt any State law prohibiting gambling.”
In other words, states that don’t allow interstate wagering on horse races aren’t compelled to offer online wagering based on the UIGEA’s exemption.
Even so, with the horseracing industry already well-established throughout much of the country, American bettors now have plenty of options to choose from when it comes to online wagering.States Where Online Horse Betting Is Banned
Before we dive into the dozens of states where you can bet horses legally online, let’s get the 11 states (plus the nation’s capital) where the industry is illegal out of the way:
These states may seem like an eclectic bunch with little in common, but you can find a few themes uniting them.
In 1959 – when Alaska and Hawaii became the 49th and 50th states, respectively, admitted to the Union – the ethical questions surrounding horse and dog racing at the time made the industry a non-starter during the statehood debate.
Utah’s longstanding influence by the Mormon Church has made the state a no-go zone for any sort of gambling, while religious conservatism in Southern states like Georgia, Mississippi, and Texas had the same effect.
And of course, Nevada had a monopoly on land-based gambling for several decades, so while interstate off-track betting is permitted, the state’s Gaming Control Board has kept online wagers illegal to shepherd customers to casinos.States Where Online Horse Betting is Legal
Fortunately, the list of locales where online horse betting is banned is quite short compared to the 39 states where the industry is legal:*Online betting in Arizona is limited to the following cities and racetracks: Albuquerque, Aqueduct, Arapahoe, Arlington, Assiniboia, Australia A, B, C & D, AUS-Melbourne RC, Belmont, Belmont Advance, Belmont Penn Pick 4, Belmont/Santa Anita Double, Belterra Park, Breeders Cup Advanced, Breeders Cup Double, Canterbury, Century Downs (TB), Charles Town, Churchill Downs, Cross Country P4, Del Mar, Delaware, Delta Downs, Dubai, Ellis Park, Emerald, Evangeline Downs, Fair Grounds, Fair Meadows, Fairmount, Ferndale, Finger Lakes, Fort Erie, Fonner Park, Fresno, Gold Cup/Belmont Double, Golden Gate, Gulfstream, Gulfstream West, Hastings, Hawthorne TB Only, Hialeah, Indiana Downs, Japan, Keeneland, Kentucky Derby

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