States With Legal Sports Betting
Contrary to popular belief, there are plenty of states with legal sports betting options. The fact of the matter is that, yes, at first glance the United States does not seem to be the most sports betting friendly. However, once you start to explore different options you will understand why the American Gaming Association estimates that more than 150 billion is bet on sports each year and how this possible.
Sports betting, like most forms of legal gambling in the USA, has been a controversial topic over the years. State and federal governments have been debating over the legality of the activity for decades, and there has been upward progress bringing on the widespread regulation of sports betting across the states. Even with land-based sports betting options being limited, USA sports fans can still use the internet to bet on their favorite teams.
In learning about the states with legal sports betting, it is important to understand your options from both land-based and online perspectives. There are sports betting laws that explain why you only have a few choices when it comes brick-and-mortar sportsbooks versus dozens when it comes to online sports betting sites. Further exploring state and federal sports betting laws will shed insight on the legal climate of sports betting in the USA, and also give you the information you need on internet sports betting.
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Federal Sports Betting Laws
The states with legal gambling in the USA are few and far between thanks to certain federal sports betting laws. Rather than the permissibility of betting on sports being determined by each individual state, the federal government has established the framework surrounding sports betting in the United States. Though each of these laws for online gambling are different, they have all had an impact on how Americans can legally bet on sports. The three laws that you should become familiar with are the Professional and Amateur Sports Protection Act, the Wire Act, and the Unlawful Internet Gambling Enforcement Act.
Professional And Amateur Sports Protection Act
The Professional And Amateur Sports Protection Act, also known as PASPA, is one of the most controversial sports betting laws in existence. PASPA was enacted by the 102nd United States Congress and signed by former president George H. W. Bush in 1992. The law prohibited states from issuing new sports betting licenses, which as a result made it illegal to establish land-based sportsbooks.
The only states exempt from the law were those that had already established legal sports betting schemes. Nevada had licensed sportsbooks, while Delaware, Oregon, and Montana had sports lotteries. Even with four states being authorized, the only states with legal sports betting are NV and DE if you want land-based options. Today, Nevada is the only state with full-scale sports betting and Delaware offers limited NFL parlays.
There was a provision in the law that would have allowed New Jersey or any other state with a 10-year history of casino gaming to establish sports betting laws within a one-year window, however, there was no such action taken. That is why NV, DE, OR, and MT are the only states that PASPA permits to have land-based sports betting.
http://uscode.house.gov/view.xhtml?path=/prelim@title28/part6/chapter178&edition=prelim
The Federal Wire Act
The Federal Wire was one of five anti-crime bills passed by then-President John F. Kennedy in 1961. Initiated by former U.S. Attorney General Robert F. Kennedy, the Wire Act sought to crack down on the organized crime that was characteristic of the era. The law made it illegal for individuals in the gambling business to use interstate wire communications to transmit betting information, assist with placing sports bets, or accept sports wagers. Being that telephones and telegraph wires were the primary modes of communication during the time, the law made it more difficult for crime networks to make money.
Though the Wire Act was enacted well before the advent of the internet, it has now been interpreted to include internet sports betting. In 2011, the Department of Justice issued a formal memo which stated that the federal law only applies to sports betting. This, paired with federal laws like the UIGEA, has made it so that there are no US-based online sports betting sites. There are, however, offshore sportsbooks that are able to legally accept American bettors based on the regulations within their respective jurisdictions.
http://uscode.house.gov/view.xhtml?path=/prelim@title18/part1/chapter50&edition=prelim
Unlawful Internet Gambling Enforcement Act
The Unlawful Internet Gambling Enforcement Act (UIGEA) was enacted by the 109th United States Congress in 2006. Despite the title of the law, the UIGEA does not make it illegal to use the internet to gamble online. Instead, the Act is a banking provision that prevents U.S. financial institutions from processing online gambling transactions. The Department of the Treasury and the Federal Reserve Board have designated five payment systems that must monitor and prevent “restricted transactions” from being processed. These include card systems, ACH systems, check collection systems, money transmittal businesses, and wire transfer systems.
The UIGEA does not make online sports betting or any other type of internet gambling illegal, but it makes it so that banks cannot accept the payments. The Act effectively made it impossible for sports betting sites to operate from within the U.S. being that there would be no options for payment processing. Offshore sports betting sites work with their own payment processors in order to accept wagers from American sports bettors. You can use the same credit cards, checks, and other payment methods that you are accustomed to. It is important to remember that like most federal sports betting laws, the UIGEA only applies to businesses. From the standpoint of a casual bettor, the UIGEA does not impact the states with legal sports betting options via the internet.
https://www.fdic.gov/news/news/financial/2010/fil10035a.pdf
Is Gambling On The Internet Legal?
When it comes to sports betting, gambling on the internet is legal as long as you use offshore sports betting sites. The federal sports betting laws in the U.S. are directed toward gambling businesses and not casual sports bettors. They may limit the types of US-based online gambling sites, but they do not prohibit bettors from using online sportsbooks based overseas. These sites are licensed and regulated to accept bettors from the United States. The majority of states do not have any laws regarding internet sports betting, which means that you can use a legitimate offshore sportsbook without issue. Always use reputable US-friendly sports betting sites such as Bovada, BetOnline, and others that have years of experience in the American market.
Legal Age To Bet On Sports
Though the federal government does dictate most aspects of the sports betting industry, the legal age to bet on sports is not included in the scope of federal laws. Each local government is able to determine the age requirements for each type of gambling offered in the state. Though the majority of states will allow residents to start betting at age 21, there are others that have a minimum gambling age of 18. You should always verify the legal age to bet on sports in your state before joining an online sportsbook.
The Future Of States With Legal Sports Betting
Though land-based sports betting is currently limited to Nevada and Delaware, the states with legal sports betting may grow in the near future. With New Jersey taking their appeal for legalized sports betting to the U.S. Supreme Court, other states have started to introduce preemptive sports betting legislation. States like CT, MD, MI, NY, OK, PA, SC, and WV have written sports betting bills should PASPA be repealed or amended.
Rep. Frank Pallone (D-N.J.) has introduced a draft bill to Congress that would bring significant changes to the U.S. sports betting industry. The Gaming Accountability and Modernization Enhancement (GAME) Act would call for a repeal of PASPA, opening the door for widespread sports betting legalization. Each state would be able to decide whether to regulate sports betting within their jurisdiction. Local governments would have the final authority over all types of online and land-based gambling within their respective state. With such legislation on the table and more to come in the future, it is only a matter of time before regulated sports betting is commonplace in the USA.