Online gambling casinos are extremely popular worldwide, but many people within the United States are unsure of the legality of playing at an online casino. The truth is that very few states regulate online gambling, but there are also some unregulated ways to play at an online casino. We are going to discuss all of the important topics that relate to online gambling and we'll start by discussing the federal law that directly focuses on online gambling venues.
In 2006, all certified banks in the United States were restricted from allowing transactions to online casinos. This law only applies to casino operators that are established within the United States. The law cannot be enforced on off-shore casino platforms that are not within the United States jurisdiction. With that being said, there are many different off-shore online casino venues that players within the United States can play at.
It is important to remember that off-shore gambling casinos are not bound by the same regulations and laws, so there is some risk involved. There are still some clear frontrunners that have positive reputations within the casino industry.
To conclude this section, the best way of looking at the legality of online casinos is to understand that there is a massive gray area. Online casinos are not allowed to be operated within the United States, but there is certainly no law preventing players from playing off-shore, as long as they pay their state and federal taxes.
Regulated online casinos within the United States are few and far between, but there are a few states that have passed legislation to allow players to participate in online gambling activities. Legal online casinos currently exist within New Jersey, Pennsylvania, Delaware, and Michigan. These jurisdictions have managed to rapidly legalize online gambling, but some other topics prevent some states from legalizing this activity.
Rhode Island, Oregon, and Indiana have also passed some online gambling laws, but they are not currently supporting online casinos. Instead, these states have focused on legalizing sports betting and online poker. Some players consider the sportsbooks apart of their online casino experience. Legalizing a sports betting platform is better than nothing at all, and it shows the potential for legalizing other online casino activities inside of these state jurisdictions.
These four states are currently leading the industry within the United States in terms of the legalization of online casinos. All of the remaining states have not yet committed to online gambling regulations. It might seem like only a small percentage of states has focused on legalizing online casinos, but that is because it is true.
Some people might think that the states would want access to the potential tax revenue that comes with online casinos, but there are several logistical hurdles in many of these states that prevent that from happening.
Lawmakers in several states are hopeful that they can add their state to this list at some point in the near future. We are now going to shift our focus to some of the states that are currently on the horizon of passing online casino laws that regulate online gambling.
As you can see from the previous list, most states are subject to unregulated online gambling laws and players are forced to play off-shore on sketchy unregulated platforms to satisfy their gambling craving. The good news is that some states are pushing for online casino legality because of the potential tax revenue that could be brought to their state.
California and Kentucky are two states that do not currently prevent players from gambling on unregulated casino platforms. California has made several efforts to pass online gambling legislation in recent years, but the conflict with rival horse racing tribes has prevented lawmakers from making much progress. Kentucky simply does not prohibit online gambling, which makes it seem like a clear path for legalization.
It is unclear if any other states are willing to go through the process to legalize online gambling activities. The potential for profits is large in some states, but there are certainly some jurisdictions that want nothing to do with online casinos and gambling.
It appears that the large-scale legalization of online casinos within the United States is going to be a long and rough path for many states. One wishful way of speeding this process up would be to pass a federal law that legalizes online casinos across all states. This could potentially be harmful to some aspects of gambling, particularly to Nevada's gaming venues.
For now, it appears that players will have to be satisfied with their current options, regardless if they are in a legalized gambling state or not. There is no doubt that hundreds of thousands of people are currently playing in unregulated gambling environments through online platforms that are located outside of the United States. This will likely continue until more states legalize and regulate their own statewide online casinos.
The potential for revenue from online slot machines, table games, and other traditional casino activities are limitless. States like California would reap significant benefits, but the conflicting parties within the state are proving to be enough to prevent any laws from passing and becoming official law. Other states might not have the heavy headwinds that California has in this process, but they seem to be less interested in focusing on this particular subject.