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Gambling Laws in the USA – History & Evolution

Nicholas Crouch, Chief Editor at Scams.info

Article by: Nicholas Crouch - Casino Еxpert

Date Published: 21/09/22

The gambling laws in the USA have been going through a peculiar period, especially after PASPA was struck down in 2018. Today, every state can decide whether to legalize it and how to control it! But, gambling has deep roots in the US since the first settlers’ arrival in the 17th Century.

Gambling Laws in the US

What Are the US Gambling Laws?

In this article, we aim to present the current gambling laws in the United States, together with some references to the history of events. Each of the 50 states has its own laws and rules about the different aspects of betting. Some allow only pari-mutuel wagering on horses, while others, a lot more.

Find out the basic evolution of gambling since the first settlers set foot in the New World. Learn what PASPA is and why its repeal shifted the layers in the industry so much!

Origins of the US Gambling Laws

Games of chance and horse races were brought by the first settlers in each of the American colonies. No restrictions were applicable, although rules and trends differed from one community to another. Lotteries were also popular as they were used for raising funds for various colonial initiatives.

In the 18th Century, the situation rapidly changed, and most forms of gambling were made illegal. Safe havens were created like New Orleans! Special gambling riverboats appeared, but lotteries in most territories were shut down. All these anti-gambling moves continued until the late-19th and mid-20th Centuries.

Tribal Casinos & Gambling Destinations

For many people, the big change in the gambling laws in the USA started with the opening of the first Indian land-based casino. It was actually a bingo parlor with high stakes built by the Seminole tribe in Florida in 1979. Its massive success was followed by many other indigenous nations starting to open similar facilities in their reservations.

As of the beginning of the 21st Century, more than 150 tribes operate casinos or bingo locations across 24 states. Here are some of the most popular Indian establishments:

  • Mohegan Sun Casino – Uncasville, CT
  • Seminole Hard Rock Hotel & Casino – Tampa, FL
  • WinStar World Casino & Resort – Thackerville, OK
  • Yaamava’ Resort & Casino – Highland, CA
  • Foxwoods Resort Casino – Mashantucket, CT

We have to mention America’s gambling cities, where casino games and horse betting have always been legal. In fact, many were established with this sole purpose! The most popular undoubtedly are Las Vegas, Atlantic City, Reno, and Tunica.

PASPA Revoke

The Professional and Amateur Sports Protection Act was signed in 1992, making sports betting officially banned on a federal level. Only pari-mutuel and off-track betting on horse races were allowed until 2018, when the Supreme Court revoked PASPA. Although gambling is a wider concept, this act was a major boost.

Land-based casinos are adding sportsbooks in the states with positive votes. People are now free to visit any sports bar or larger establishment and place their wagers in person. Moreover, the Supreme Court’s decision further opened the door to the legalization of online gambling! The severely increased tax income makes legislators more open-minded!

US States with the Heaviest Gambling Restrictions

The legalization of gambling comes with many benefits, including an increase in the state’s income from licensing fees and taxes. Furthermore, gamblers are exposed to less risk when playing in a regulated environment. Even so, some states are persistent and don’t wish to take a step further.

As of today, 49 US states allow gambling in one form or another. The only exception is the Mormon Utah, where the family has always come first, condemning sinful activities like casinos and betting. Gamblers will find certain restrictions in Alabama, Alaska, Hawaii, and Nevada as well.

Online Gambling in the USA

In 2011, the Department of Justice allowed states to vote individually and eventually pass bills, leading to online gambling legalization. However, only a few jurisdictions took over that amendment. A bigger boost came in 2018 and the PASPA repeal! This was the last massive change in the gambling laws in the USA.

Pennsylvania, Connecticut, Michigan, New Jersey, Delaware, and West Virginia were among the first to lift the ban on gambling online. More states join the group every year, noticing the benefits of such a move. Among many operators, only the best online casinos in the USA are 100% licensed and safe.

Questoins & Answers

The gambling laws in the USA are constantly changing, so we’ll keep adding new articles on the topic! If you need more information, we invite you first to check the FAQ section below. Here, our editors publish detailed answers to the most popular questions. Feel free to contact us directly as well!

1️⃣ Is gambling legal in the USA?

Every state has its laws regarding gambling. In all of them, except Utah, it is available in a certain capacity. For example, Nevada and Alabama have no state lottery, while New Jersey offers all types of gambling, including online casinos and sports betting. However, for some time, the gambling restrictions in many US thates will probably remain.

2️⃣ What were the first forms of gambling in America?

When the colonists arrived and brought ancient gambling games, there were no betting restrictions. They entertained themselves by playing dice, baccarat, poker, and betting on horse races. These activities, however, were too sinful for many communities, so they were proclaimed illegal, placing the origins of US gambling laws18th century.

3️⃣ Can I gamble online from every US state?

The gambling laws in the USA are different in each state, but more and more legislators are now open to the legalization of online casinos and sportsbooks. They see a huge opportunity to increase their income and protect the rights of gamblers. Still, there are too many US states where online gambling is prohibited .

4️⃣ In which states can I find land-based casinos?

Louisiana and Nevada fully legalized casino-style gambling. In many others, bettors can find land-based establishments operated by indigenous nations. WinStar World Casino & Resort in Oklahoma is the biggest facility and one of the most popular brick-and-mortar casinos in the USA.

5️⃣ When was the turning point for gambling in the USA?

For many communities and state legislators, the Supreme Court's decision in 2018 to strike down the Professional and Amateur Sports Protection Act was the key. In the following years, the legalization of various forms of gambling started moving forward. People realize that gambling exists in many forms, and putting them in control is the better move.