Gambling in the USA
Gambling Laws in the USA Explained – NJ + South Dakota State Legislation Examples
Gambling laws in the US may seem complex, but once you break them down, they actually make perfect sense. It all begins with Federal Law passed through Congress where there is a ban on American financial institutions allowing players to fund any type of online gambling accounts.
If caught, the fine is exorbitant to say the least, so naturally the financial arena in the US obliged by banning all online casino transactions. Even crypto wallets based in the US are susceptible to fines if caught allowing US subscribers to fund an overseas online casino account. However, state level laws can override Federal law using land-based casino licenses where taxes on gambling revenue are still applicable.
Explanation of how US online casinos can operate under land-based casino licensing
To explain further, New Jersey is perhaps one of the best examples to use. Land-based casinos have licences to operate in Atlantic City—the only place where casinos are legal in the state under the New Jersey Casino Control Commission (NJCCC).
Next, under the Division of Gaming Enforcement’s Licensing Forms (NJDGE), online casino brands can apply for a partnership under one of the land-based casinos. For example, you can check out this virgin-casino review, which is a US online casino available in New Jersey under the Tropicana Atlantic City land-based casino licence. As long as Virgin Casino operates its online gambling servers on the premises of Atlantic City’s Tropicana land-based casino, players that connect with these servers are effectively betting inside the casino.
As a result, betting using US dollars is legal, and financial institutions can legally offer deposit and withdrawal methods with these casinos. Adding to this, if you search for legal/licensed online casinos in New Jersey, you will also see the Tropicana online casino is another option.
Both Virgin and Tropicana online casinos operate under the same Tropicana land-based casino license and, as such, revenue earned via the online casino is clubbed together and reported to the Inland Revenue for tax purposes.
Explanation of states that use different frameworks for multiple gambling verticals (South Dakota)
Both online sports betting and online casinos can operate in the Garden State under the laws laid out by the NJDGE. However, in some states, online gambling is illegal, while making deposits to online and/or mobile sports betting are legal. This may seem odd at first, but in effect, both gambling verticals operate under different laws in some states. Then there are separate land-based sports betting, horse racing, and casino laws that do not coincide with online gambling laws. In South Dakota, there are different laws for all verticals.
South Dakota Gambling Laws:
- Online Horse Racing—legal framework in place (Permitted)
- Land-based Horse Racing—legal framework in place (Permitted)
- Dog Racing—no legal framework (Not permitted)
- Online Casinos—no legal framework (Not permitted)
- Land-based Casinos—legal framework in place (Permitted for certain games)
- Poker—legal framework in place (Permitted)
- Online Sports Betting—no legal framework (Not permitted)
- Land-based Sport Betting—no legal framework (Not permitted)
- Fantasy Sports Betting—no legal framework (Not permitted although some confusion)
- Lottery—legal framework in place (Permitted)
As you can see, in South Dakota, the laws allow online and land-based horse racing bets. Yet, this does not fall under sports betting, which refers to football, soccer, basketball, and so on. Meanwhile, no forms of online casino gambling have a legal framework in place. Lottery is permitted thanks to a 1986 constitutional amendment approved by voters.
Land Based Casino Games Permitted in South Dakota
In 1989, land-based ‘Video Keno’, ‘Bingo’, and ‘Video Poker’ came to South Dakota as the first casino games to legally operate in the state. Shortly after, casinos in Deadwood would come to town via a vote that made casinos legal here to save the city’s economy.
Land-based casino games now legal in South Dakota’s Deadwood:
- Video Slots
- Blackjack
- Poker
- Craps/Roulette
- Video Keno
- Bingo
- Video Poker
Casinos must abide by maximum bet limits on each game and the number of tables, slots, or other gaming machines allowed on the premises. With the laws regularly changing, the city is now a popular casino destination with over 40 land-based establishments operating today.
Why is it important to understand the different state laws?
If you are looking to gamble legally in the US whether online, retail, or at a land-based casino establishment, through this guide, you will now be aware that some states are straightforward with their laws, while others have various laws across multiple verticals.
New Jersey, Michigan, Pennsylvania, Delaware, West Virginia, and Connecticut have the most straightforward laws for pretty much all forms of gambling. Nevada is fairly straightforward legalising all forms of gambling online and land-based with the exception of online casinos. Then there are states you will need to do a little more research on, such as South Dakota, where gambling laws are applied to a variety of different verticals. Now you know what to look out for, you can travel across the country and know what to look for before deciding whether you can legally gamble.
Fanatics Sportsbook Plans To Launch Online Statewide, Open Retail Sportsbooks Serving Kansas City and St. Louis Markets –
Today, Fanatics Betting and Gaming announced that it is partnering with Boyd Gaming Corporation in the state of Missouri.
Under the terms of their multi-year agreement, Fanatics Sportsbook will operate mobile sports betting under Boyd’s sports betting license in Missouri. The companies will open Fanatics-branded retail sportsbooks at Boyd’s Ameristar Casino Hotel Kansas City and Ameristar Casino Resort and Spa St. Charles, located near St. Louis. Fanatics plans to launch its online and retail betting products with the debut of regulated sports wagering in Missouri this December, contingent upon receipt of all required regulatory approvals.
Upon launching this December, sports fans across Missouri will be able to download the Fanatics Sportsbook on iOS and Android and begin their Fanatics experience. Winning Hits Different in Missouri on Fanatics Sportsbook with up to 10% FanCash back on every bet, win or lose; Fair Play™ injury protection; and events and experiences that only Fanatics can pull off.
The Fanatics Sportsbook retail locations at the two Ameristar casinos in Missouri will cater to guests looking to enjoy the ultimate sportsbook experience, offering legal betting markets for all major sports including professional and college football, basketball, hockey, baseball, tennis, soccer, golf, MMA, boxing and more. All development and trading of sports betting markets will be done in-house by Fanatics.
For more news and information on the pending launch of legal sports betting in the state of Missouri, follow the Fanatics Sportsbook social channels on X @FanaticsBook and on Instagram @FanaticsSportsbook.
Must be 21+. GAMBLING PROBLEM? CALL 1-800-GAMBLER
As a state lawmaker, Zohran Mamdani generally opposed plans to open full-scale casinos in New York City. In June, when he walked past a billboard showing betting markets for the city mayor’s race, he even quipped that “gambling is haram,” an Arabic word meaning forbidden.
But on Wednesday, Mr. Mamdani said that he did not intend to use his newfound political clout as the Democratic mayoral nominee and the race’s front-runner to try to stop the arrival of casinos that are widely considered a fait accompli.
Speaking alongside the leader of a union pushing the gambling expansion, Mr. Mamdani told reporters that while he still had doubts about the casinos backed by corporate giants, he respected the views of state voters who had approved the downstate gambling expansion more than a decade ago.
According to research from Better Business Bureau (BBB), the illegal online gambling market is nearly four times bigger than the legal online gambling industry; $402 billion to $103 billion (estimates from Researchandmarkets.com and the American Gaming Association, respectively).
The BBB says it has received almost 200 scam reports and more than 10,000 business complaints related to online gambling and gaming since 2022. Some scam reports involved theft, while complaints showed a pattern of unclear terms and consumer misunderstandings. In some cases, consumers lost tens of thousands of dollars.
Here are some common questions with answers from the BBB regarding online gambling:
What red flags should I look out for if using gambling or gaming services?
Big promises around payouts and tempting ads without details are common. Many people aren’t aware the people they are dealing with are in countries overseas. People should also be leery of sweepstakes-style games, payment through cryptocurrency and typos in names.
How can I avoid issues with gambling or gaming companies?
Read your state and provincial laws. There are many different laws for online gambling, depending on where you live.
Check for proper licensure. Even if your state allows gambling, it may have a limited list of allowed websites. Check with your state’s gaming agency to see who is licensed.
Read the fine print. The reality of how winning and withdrawal works may be different than your first impression on a website. Check out the details of a specific service and fully understand how they work before sending them any money.
Even legitimate websites may freeze winnings. There are many reasons why a casino or sportsbook might freeze winnings, even if the money is rightfully yours. Know what actions to take if your account is frozen.
Visit BBB.org to check out a business or register a complaint and BBB.org/ScamTracker to report a scam.
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