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For many years, gambling was often associated with other social vices. To this end, it is forbidden in some parts of different countries worldwide. However, throughout the years, from being strictly forbidden, gambling has become legal in many nations. Many countries have accepted it as a legal game and business. Although, in these nations where gambling is legal, there are rules and regulations. There is a licensing system for online gambling operators.

The United States of America is one of the countries globally where gambling is legal. However, there is a licensing system to check the actions of gamblers and casinos. Not only is there a licensing system, but there are also types of licenses for online gaming in the US. The major states deeply into gaming in the US include Nevada, New Jersey, Las Vegas, and Atlantic City. Other states include Michigan, Pennsylvania, Missouri, West Virginia, etc. These states have legalized online gambling and even online poker rooms.

Licensing System for Online Gambling in the USA

The licensing system for online gambling in the United States is quite complex. It is divided into two levels: the federal level and the state level. The federal online gambling law is further subdivided into three:

  • The Interstate Wire Act,
  • The Professional and Amateur Sports Protection Act,
  • The Unlawful Internet Gambling Enforcement Act.

The Interstate Wire Act is one of the online gambling laws at the federal level. It was passed into law by President Kennedy in 1961. The Interstate Wire Act was formulated to cut into the gains of organized crime in the States. The Interstate Wire Act proscribes the operation of various betting businesses, bans any form of betting through wire facilities, and puts an end to organized online crimes in the United States.

The Professional and Amateur Sports Protection Acts (PASPA) is also known as the Bradley Act. It was named after the New Jersey Senator and former NBA star Bill Bradley. Made effective on October 28, 1982, it stopped all forms of sports betting. It attempted to declare all sports betting activity illegal. Section 3702 of The Professional and Amateur Sports Protection Acts states that it shall be unlawful for a governmental entity to get involved in betting through sponsorship, operational alignment or any other means according to the law or compact of a governmental entity, on a contest based directly or indirectly (through the use of geographic reference or otherwise) on one or more competitive games in which amateur or professional athletes participate.”

The UIGEA is an acronym for the United Internet Gambling Enforcement Act that was created to clamp down on accessibility to online gambling by making it illegal for banks and other financial institutions to make payments for gambling. This suggests that if one can’t receive or send money, one can’t gamble as well.

According to the UIGEA Act of 2006, what it does is that it prohibits gambling enterprises from intentionally accepting payments relating with the participation of another person in a bet or wager that involves internet access or any means that is unlawful under any federal or state law.”

Is There a Limit of Authorized Casinos?

On the other hand, the State laws for online gambling have evolved over the years. It has developed through the many limitations faced by online gamblers. The states that are the forerunners of online gambling and play home to some of the best online casinos in the United States of America include New Jersey, Pennsylvania, and Michigan.

New Jersey has legalized online casinos, poker rooms, and online sportsbooks. This legalization came into effect in 2018. The DGE (Division for Gaming Enforcement) is responsible for the legalization of any online gaming business. However, any online gaming business that will be established must first partner with a land-based casino that has been legalized by the functioning legal body (DGE) in New Jersey.

The Pennsylvania Gaming Board is responsible for regulating gaming (both online and land-based) in Pennsylvania. The Board oversees the affairs of online casinos, sportsbooks, and poker rooms that they have legalized. Like the law of the Division for Gaming Enforcement in New Jersey, it is also pertinent that the intending online casino business partners with the land-based casinos that the Pennsylvania Gaming Board has approved.

The Michigan Gaming Board is responsible for giving out licenses to online casinos in Michigan, USA.

In the United States of America, only Utah and Hawaii have a total ban on online gambling. Asides from these states, the United States has authorized all forms of gambling such as card rooms, lotteries, charitable games and bingo, pari-mutuel wagering, etc. Although some states consider gambling illegal, immoral, and sinful, there’s no generic law in the USA that bans online casinos or any of its kind.