As the devolved nature of each US state poses a fractured regulatory challenge for online casinos, it is an industry that is continuing to make strides. It’s quite remarkable how it’s been able to dodge so many regulatory landmines and is now on course to becoming a trillion-dollar industry. Now, we’re not naive; we know plenty of other factors are in play, including burgeoning gambling markets in prominent economies like the UK, Australia, Canada and Germany.
If we zoom out of online casino gaming and look at the market as a combination of sports betting and casino gaming, the US is streets ahead of everyone else. It’s important, however, to stress that these two markets are very different.
Over 30 states have now legalized sports betting, while less than 10 have legalized sports betting and casino gaming. While it can be challenging to keep track of which states allow any form of gambling, there are also those that are vehemently against it and those that sit somewhere in the middle. Today, we’re going to run through the legality of online casinos in different US states so you can get an idea of the current state of play.
The current attitude towards online casinos in the US
It’s fair to say that, on the whole, the US online casino market is going through a frivolous time. While it could be doing better, it could be doing a whole lot worse. In fact, consider 15 years ago when no state had any laws to regulate online casino gaming – in 2010, no states even allowed sports betting. It was a barren wasteland of an industry.
Discussing the state of online casinos can stir up some strong opinions among gamers and casino gaming enthusiasts. It also depends on the state in which they operate. Some states are far more lenient, and others, we think we could quite safely say, will never legalize online casino gaming.
States with a hardline approach
Out of all the states that do not want to entertain the idea of betting, Utah is where any change to legislation is highly unlikely to get off the ground in any meaningful way. Not only has Utah been anti-gambling since the 19th century, it is also written into its state constitution. It is one of only two states with a complete ban on anything associated with gambling, which extends to smaller competitions such as lotto and scratchcards.
Those found gambling in Utah can face a prison sentence if they are caught on three or more occasions. Hawaii has had a strict set of anti-gambling regulations in place since it became a US state.
Although Hawaii is renowned as a tourist destination for millions of people every year, they have a longstanding anti-gambling sentiment that they have not budged on for generations.
Other states stand out on the list, most notably California, which has the luxury of a multifaceted economy and does not have to rely on revenue from casino gaming. Therefore, despite lobbyists’ extensive attempts to rewind some of the longstanding anti-gambling legislation in the state, they continue to put down any suggestion that it could be legalized.
Alaska and Texas have also taken a noticeable hardline approach over the last couple of decades. Still, legislators in Texas could be softening toward the idea of legalized sports betting, which is usually the first step toward a broader loosening of gambling laws.
It appears that legislators within the state are noticing the wider national shift. Using an array of tools such as business analytics and applied data science, it’s clear that there’s a colossal potential tax base in Texas if they do choose to legalize and regulate online casinos.
We will see, though, that only seven states currently allow online casino gaming, and it takes a long time for laws to get through rewrites, judges’ sign-offs and voting systems before they are eventually made legal.
States where online casino gaming is legal and regulated
Delaware was the first state to legalize online casino gaming, back in 2012. It set the benchmark for many of the states that have gone on to follow in their footsteps. Although many might think that Nevada or New Jersey might have been the first places to legalize it, it was in fact the small, unassuming state of Delaware. New Jersey followed shortly after, in 2013.
The state had been looking to establish itself as an East Coast equivalent to Las Vegas, with millions of dollars of investment pouring into the Atlantic City region throughout the 2000s.
For a multitude of reasons, it never really got off the ground as a legitimate threat to the Nevadan gambling metropolis. Still, unperturbed by this abject failure, state legislators made the unprecedented move to follow Delaware and become the second state to allow online casino gaming.
Nevada also allowed it but limited its citizens to poker gaming only. Anyone in Nevada who wishes to play casino games other than poker must visit the state’s land-based establishments. Pennsylvania, Michigan, Connecticut and West Virginia complete the rest of the list – but be sure to keep an eye on this list, as the legality of gambling across the US can change rapidly.
Final thoughts
It feels like the tide is turning in several states regarding online casino gaming. It faces greater challenges compared to land-based casinos or sports betting platforms. Sports betting, for instance, is marketed alongside live gaming, and many believe it is a more accepted form of wagering. Casinos, on the other hand, are games of pure luck, and some analysts believe they can be more destructive, especially for those who develop a problem with their gambling.
Land-based casinos have better control over who they can allow in, and better oversight over players, how much money they spend etc. While all of these issues have not posed too much of a problem in countries where online casino gaming has been properly regulated for 20 years, such as the UK, it does result in an attitude where it’s harder for lobbyists to campaign and get online casinos legalized effectively and properly.
