Is Online Gambling Legal in the US?
US gambling laws are constantly changing, and as a gambler who cares about staying legal, you need to keep up to date.
The American online gambling industry earns about $1 billion a year. However, online gambling continues to face legal challenges.
Online gambling is legal in the United States, as there is no federal law penalizing you for playing online. There is a catch, however. You can place wagers online only if you’re connected to a casino website that is outside the United States.
Yes, it’s confusing. Let’s see if we can’t bring some clarity to the matter.
The Legality of Online Gambling in the United States
Even though no federal laws bar you from online gambling, each state has jurisdiction to pass laws governing gambling – both brick-and-mortar establishments and those that exist only on the internet. For now, though there is no federal law prohibiting online gambling, you should never gamble at an American gambling website.
Since you’re gambling online anyway, it makes no difference whether the casino you gamble at has its servers in Vermont or Vladivostok.
The operators of those overseas casinos should offer only casino and poker betting to Americans. They are in violation of US law if they offer sports betting to American customers.
As a gambler, you’ll be fine if you stick with online casinos that are operated out of Australia, Latin America, and the Caribbean.
Where is Online Gambling Legal in the US?
Although most online gambling websites operate from outside of the states, the matter is hotly contested in many states. It’s easy to find states that have put laws and provisions in place to make online gambling explicitly legal or prohibited.
From a technical standpoint, online gambling may be illegal even with overseas casinos, but the law is not enforced. Most of the laws that apply to online gambling were created before there were any online casinos – before the internet existed. Lawmakers haven’t updated the laws in most states.
Let’s take a quick look at the states that allow gambling and those that don’t allow it.
Online Gambling Laws by State
Here is an overview of US gambling laws by state:
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Alabama
Knowingly earning money from illegal gambling activity is a Class C misdemeanor. Possessing a gambling device is illegal if you have it with the intention of partaking in illegal gambling activity – that’s a Class A misdemeanor.
Verdict: These laws are ambiguous because they don’t address online gambling or declare it illegal. The only law regarding online gambling in Alabama is that online casinos can’t operate from within the state.
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Alaska
Alaska defines illegal gambling as any gambling that’s not permitted by law. The state hasn’t explicitly legalized online gambling but has legalized social gambling. Online gambling may be illegal or it may not. Violating the law will earn you an unspecified violation. Continuous violations of the law is a Class B misdemeanor.
Verdict: Ambiguous, but likely illegal. Play on online gambling websites at your own risk. If you get caught, it’s probably better to stop.
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Arizona
Arizona has legalized social gambling and has explicitly made online gambling illegal. Earning money gambling is a Class I misdemeanor. Since the law states that online gambling is illegal only if you obtain any benefit from it, it’s not entirely clear if playing just for fun is illegal.
Verdict: The law is somewhat ambiguous, but as a practical matter it is illegal to gamble online if you live in Arizona.
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Arkansas
Arkansas makes it explicitly illegal to gamble on anything that results in winning money or property.
Verdict: Explicitly illegal.
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California
In 2015, California legislators introduced four bills to legalize and regulate online poker, but inaction led to their death. In 2018, a petition to legalize and regulate sports betting was submitted to be on the November 2020 election ballot. No California law explicitly makes online gambling illegal. However, individual counties, cities, and towns might have laws in place, and players are encouraged to research them beforehand.
Verdict: Online gambling is legal at the state level, but can be illegal on the local level.
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Colorado
Colorado’s anti-gambling laws state that any form of gambling apart from social gambling is illegal – a Class 1 petty offense.
Verdict: Illegal. Gambling online in Colorado can earn you a minor penalty.
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Connecticut
Connecticut has made it clear that gambling in any form is a crime. If caught, you could be charged and convicted of a Class B misdemeanor.
Verdict: Explicitly illegal.
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Delaware
Delaware has legalized regulated online gambling, and state law doesn’t state that it’s illegal to gamble on unregulated websites. Although it’s Class A misdemeanor to own a device used for gambling, it’s not illegal if you’re using it to gamble on a regulated website.
Verdict: Legal.
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Florida
Florida regulates some forms of gambling but outlaws unregulated gambling. Online gambling is a second-degree misdemeanor in the Sunshine State. It’s also illegal to gamble on websites outside of the state.
Verdict: Explicitly illegal.
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Georgia
Georgia has outlawed gambling, declaring it a misdemeanor. Although the law doesn’t specifically mention online gambling, it does say that any device used for a casino or card game is illegal.
Verdict: Explicitly illegal.
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Hawaii
Hawaii has expressly made it illegal for anyone to partake in any form of gambling. Only home games and social gambling are allowed. Games of chance are not.
Verdict: Explicitly illegal.
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Idaho
Idaho has legalized only state-sanctioned gambling, while all other forms of gambling are misdemeanor offenses.
Verdict: Explicitly illegal.
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Illinois
Illinois has outlawed any game of chance or game that requires money or another valuable item. Gambling is a misdemeanor in Illinois.
Verdict: Explicitly illegal.
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Indiana
Indiana prohibits operating an online casino in the state. Gambling is a Class B misdemeanor for players. Any device used for gambling will automatically be deemed illegal.
Verdict: Explicitly illegal.
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Iowa
Iowa has the strictest laws on online gambling. The state has some forms of legal, regulated gambling, but every other kind of betting is illegal. Bet enough and you can be convicted of a felony.
Verdict: Explicitly illegal.
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Kansas
Kansas has declared betting a Class B misdemeanor. This doesn’t apply to state-sanctioned gambling.
Verdict: Explicitly illegal.
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Kentucky
Kentucky’s legislators have made it illegal to promote gambling activity – a ban that applies to online gambling websites, not players. No law makes it illegal for players to gamble.
Verdict: Legal.
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Louisiana
Louisiana has explicitly banned gambling via computer. Violate this law and you can be fined as much as $500 and spend as long as six months in jail.
Verdict: Explicitly illegal.
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Maine
Gambling is a crime in Maine, but the state has no laws or penalties associated with gambling online.
Verdict: Legal.
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Maryland
Maryland considers the use and possession of a gambling device a crime that can result in fines and jail time.
Verdict: Explicitly illegal.
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Massachusetts
Massachusetts has laws that prevent people from operating gambling websites within the state. The law restricts people from gambling in a public space, and if anyone wins more than $4, the state will fine them double the amount they win. However, state-sanctioned gambling is permitted.
Verdict: Explicitly illegal.
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Michigan
In Michigan, it’s illegal to win money at a gambling website. Winning less than $50 is a misdemeanor. Winning more than $50 can result in jail time and a $1,000 fine.
Verdict: Explicitly illegal.
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Minnesota
Minnesota doesn’t define any penalties for players gambling online. State law defines betting as a gross misdemeanor, but the law doesn’t appear to apply to players gambling online.
Verdict: Legal.
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Mississippi
Mississippi has banned all forms of gambling not explicitly permitted. Violators can be fined $500 or serve 90 days in jail.
Verdict: Explicitly illegal.
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Missouri
In Missouri, only explicitly identified gambling is legal. All other forms of gambling are misdemeanors.
Verdict: Explicitly illegal.
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Montana
Montana defines online gambling as a misdemeanor and classifies devices used to gamble online as illegal. A first offense can result in a $500 fine. The second offense gets you six months in jail and/or a $1,000 fine. For a second offense within five years, you’re looking at a year in jail and/or a fine of up to $10,000. Penalties go up from there.
Verdict: Explicitly illegal.
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Nebraska
Nebraska has outlawed any game with an element of chance, including all forms of gambling. Wagering less than $500 per day is a Class IV misdemeanor, and betting more will get you a second-degree charge for promoting gambling. Players can be charged if they gamble outside the state, and Nebraska will seize all winnings.
Verdict: Explicitly illegal.
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Nevada
Nevada has legalized state-licensed online poker websites. All other forms of online gambling are illegal. Using the telephone or other electronic communications media to share information related to making a wager from within or outside of the US is a misdemeanor in Nevada.
Verdict: Illegal except for licensed poker sites.
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New Hampshire
New Hampshire declares all forms of gambling illegal unless authorized by the state legislature. Violators are guilty of a misdemeanor.
Verdict: Explicitly illegal.
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New Jersey
Online casinos are legal in New Jersey. All gambling activity must be licensed, regulated, and taxed by the state of NJ – otherwise it’s illegal. State law outlines punishments for online gambling websites, not players. State law explicitly exonerates players.
Verdict: Legal
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New Mexico
New Mexico has outlawed all forms of gambling not specifically authorized by the state. It’s a misdemeanor.
Verdict: Explicitly illegal.
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New York
New York’s online gambling laws are applicable to gambling websites, not players.
Verdict: Legal.
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North Carolina
North Carolina has declared any game of chance illegal except for state-sanctioned games. Violators are guilty of Class II misdemeanors with all online-gambling winnings seized by the state.
Verdict: Explicitly illegal.
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North Dakota
North Dakota has declared all forms of gambling not explicitly sanctioned by the state illegal. For wagers below $25 per event, there is no charge. If the wager exceeds $25, it’s an infraction. If the wager exceeds $500, it’s a Class A misdemeanor.
Verdict: Illegal under certain circumstances.
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Ohio
Ohio outlaws all games of chance, but there are no penalties for online gambling. The state has declared it illegal for people to use gambling as a source of income as well as betting with bookmakers.
Verdict: Illegal under certain circumstances.
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Oklahoma
Oklahoma sanctions some gambling as legal and the rest as illegal. Gambling not authorized by the state can result in jail time of up to 30 days and/or a fine of up to $100.
Verdict: Explicitly illegal.
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Oregon
Oregon has authorized some forms of gambling. Gambling that’s not state-sanctioned is a Class A misdemeanor.
Verdict: Explicitly illegal.
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Pennsylvania
Pennsylvania bans all forms of unauthorized gambling. The state has authorized gambling sites and online gambling since 2017.
Verdict: Legal.
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Rhode Island
Rhode Island has serious penalties for owners of gambling websites, who can spend up to a year in jail for operating a gambling website, with people associated with the site paying fines of $500. Participants may also serve up to 30 days in jail. However, there are no specific penalties for participating in online gambling.
Verdict: Legal.
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South Carolina
South Carolina has laws against operators, but fails to mention online gambling. However, the punishment for players playing other games is up to 30 days in jail or a $100 fine.
Verdict: Vague.
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South Dakota
In South Dakota, any form of gambling is a Class 2 misdemeanor.
Verdict: Explicitly illegal.
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Tennessee
Tennessee has legalized some forms of gambling and deems everything else as illegal. Possessing a device used for gambling is illegal. Illegal gambling is a Class C misdemeanor.
Verdict: Explicitly illegal except for those the state has specifically legalized.
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Texas
Gambling is illegal in Texas except state-sanctioned gambling. Illegal gambling is a Class C misdemeanor.
Verdict: Illegal unless explicitly sanctioned by the state.
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Utah
Utah has made all forms of gambling illegal and has explicitly mentioned online gambling. Gambling illegally is a Class B misdemeanor.
Verdict: Expressly and explicitly illegal.
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Vermont
Vermont has outlawed gambling except for gambling operations that are authorized by the state. Gambling at other institutions can earn you a $200 fine but no jail time.
Verdict: Illegal.
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Virginia
Virginia legalized some forms of gambling and has declared all others illegal. Using a device for gambling is illegal. Gambling is a Class III misdemeanor in Virginia.
Verdict: Explicitly illegal.
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Washington
Gambling is illegal in Washington. Transmitting or receiving gambling information electronically is a Class C felony.
Verdict: Explicitly illegal.
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West Virginia
West Virginia has legalized casinos, including slot parlors. However, all other forms of gambling are illegal. The fine for placing an illegal bet is up to $300, and anyone who fails to pay the fine will have to serve up to 30 days in jail.
Verdict: Explicitly illegal.
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Wisconsin
Wisconsin has authorized some forms of gambling but all other forms are illegal. Making an illegal wager is a Class B misdemeanor.
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Wyoming
Wyoming has authorized several forms of gambling, but the statute doesn’t contain anything that legalizes online gambling. Gambling illegally can result in six months in jail and a $750 fine.
Verdict: Explicitly illegal.
Frequently Asked Questions
Where is online gambling legal in the US?
You will find legal online gambling in Delaware, Kentucky, Maine, Minnesota, New Jersey, Rhode Island, Pennsylvania, and New York.
Can you gamble online in the United States?
Is online gambling legal in the US? It depends on the state. The federal government has left it up to the states to create their own laws. Some states have deemed it illegal, whereas others have made it legal. Other states have left their online gaming laws open to interpretation.
Why is online gambling illegal in the US?
Gambling isn’t illegal in the US, as the federal government hasn’t passed any US gambling laws. But it’s more complicated than that. The Federal Wire Act of 1961 prohibits gambling across state lines. The Unlawful Internet Gambling Enforcement Act of 2006 put an online gambling ban in place, prohibiting operators from running gambling websites in the United States.
Is Bet365 legal in the USA?
Yes, Bet365 is legal in the United States. If you’re using this website with or without its gambling software, you need to ensure you do it from a state that permits legal online sports betting.
Can you win real money on online casinos?
Yes, you can win real money in online casinos. To be safe, when you’re online gambling for real money, you should ensure that you’re doing it through a safe and secure gambling website.
Is online gambling legal in the US?
Yes and no. Some states allow it, and some prohibit it, with more than a few states where gambling’s status is vague. We advise you to read up on state and local gambling laws before placing a wager at an online gambling site.