Gambling has existed in the USA from even before the USA existed. Even before the Europeans colonists set foot ashore, the local tribes had often multiple gambling-type games and activities. The Europeans brought with them horse racing and dice games and later on invented or modified card games to make them uniquely American, like poker.
As a result, Gambling in the USA is a diverse and evolving industry with multiple stakeholders and sometimes confusing overlaps of laws and customs. Some states are more liberal regarding gambling while others are very conservative (we are looking at you Utah!) but in most states you will find a combination of physical and online sports betting, casinos, poker, lotteries, and horse racing.
With such a mix, it might be hard to know exactly what is or is not legal and what you can gamble on and where in the USA. With this article we aim to help you navigate the US gambling ecosystem and find out what you can and cannot do in your own state with our state-by-state guides.
What Makes Gambling Legal in the USA?
First, what does “legal” really mean when it comes to gambling in the U.S.? A gambling site, brick and mortar casino, or sportsbook is considered fully legal if it is licensed and regulated by a recognized government authority. These regulators include state-level gaming commissions and lottery boards that oversee both IRL casinos and online platforms.
It could be for instance an Indian Casino like the Hard Rock Casino in Miami which is authorized by the state of Florida as part of a compact with the Seminole Tribe. It could also be an online sportsbook that received a license to operate by the state of Illinois.
These local authorities enforce rules to ensure fairness, prevent fraud, and protect consumers. Meanwhile, licensed operators must pass background checks, audits, and compliance reviews based on the state where they are operating. They also tax the gambling sites or venues to generate revenues for their states.
This oversight is supposed to keep the games fair, payouts transparent, and business practices above board. When you play at a regulated platform, you expect your money and your play are protected.
It is often the case but it has not prevented operators like FanDuel or Draftkings from banning players who were winning or severely limiting them or even voiding bets saying the “odds were wrong”… Playing at a locally licensed venue therefore gives you some legal protection but it is not full-proof.
Are Offshore Gambling Sites legal in the USA
Beyond state-regulated platforms, many U.S. players also use offshore sportsbooks such as BetOnline, Bovada, and SportsBetting.ag. These operators are not licensed by U.S. regulators but operate legally in their own jurisdictions and have been operating above board for over 20 years and have a good track record of honesty.
It is important to note that for players, using offshore sites is not illegal, though these sites are not subject to U.S. state laws. The US States consider them illegal but that’s also because they don’t pay local taxes.
Because offshore operators face lighter tax and licensing obligations, they often provide bigger bonuses, better odds, and wider game selections compared to many state-regulated platforms.
That difference can significantly impact a gambler’s bottom line. Trusted offshore casinos and sportsbooks have operated for decades, building reputations as safe alternatives where state-regulated options are limited.
You might have less legal recourse playing there than playing at a locally licensed site but as long as you use one of the sites that have a spotless record of honesty (like those we recommend on our best sportsbooks) you should be alright.
Federal vs State Framework
The USA has no single nationwide gambling law. Federal laws like the Wire Act and UIGEA shape the landscape. The repeal of the The Professional and Amateur Sports Protection Act (PASPA) in 2018 opened the door for states to regulate sports betting.
As a result, gambling laws differ dramatically from state to state. A map of current legality highlights where Americans can gamble online or at Land-based venues.
The Wire Act of 1961
The Wire Act targeted organized crime and interstate sports betting. It banned the use of wire communications for gambling across state lines. For decades, it restricted sports betting to land-based venues only.
In 2011, the Department of Justice issued a key opinion. It limited the Wire Act’s reach to sports betting, not all gambling. This opened doors for online lotteries, poker, and casino games. Legal debates continue, but the Act still affects cross-border betting.
The Professional and Amateur Sports Protection Act (PASPA) of 1992
PASPA banned states from authorizing sports betting. Only Nevada, Oregon, Delaware, and Montana were exempt due to existing laws. For over 25 years, PASPA blocked the spread of legal sportsbooks.
In 2018, the U.S. Supreme Court struck PASPA down in Murphy v. NCAA. This ruling returned sports betting decisions to the states. Since then, dozens of states have legalized sports wagering, both IRL and online. PASPA’s repeal marked the start of the modern sports betting boom.
The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006
UIGEA targeted financial transactions linked to illegal online gambling. It required banks and payment processors to block certain gambling payments. The Act did not make online gambling itself illegal. Instead, it placed heavy pressure on operators and payment systems.
UIGEA forced many offshore companies out of the U.S. market. However, it also encouraged states to regulate legal online play. Today, UIGEA still influences how online casinos and sportsbooks process payments.
State Empowerment after 2018
With PASPA repealed, states gained direct authority to regulate sports betting. This shift also encouraged legislation on iGaming and online poker. States like New Jersey, Pennsylvania, and Michigan built full digital ecosystems. Others focused only on sports betting.
The federal role remains limited but important. The Wire Act and UIGEA still apply, shaping cross-border play and payments. Overall, states now lead the way in defining gambling laws.
Gambling by State
Types of Gambling in the U.S.
Sports Betting
Sports betting has become the fastest-growing part of the U.S. gambling market. Since PASPA’s repeal in 2018, states have gained control over sports wagering and many have legalized the practice.
Many states now offer both IRL sportsbooks at casinos and racetracks, as well as mobile betting apps. Popular platforms with local licenses in many states include DraftKings, FanDuel, or BetMGM.
The industry has expanded rapidly thanks to partnerships between professional leagues, casinos, and leading sportsbook operators. Fans can place bets on football, basketball, baseball, and many other sports. Online sportsbooks bring convenience, while land-based venues offer the traditional IRL experience.
Betting regulations still vary by state, but the overall trend shows strong growth nationwide. As technology evolves, sportsbooks continue to improve features, promotions, and live betting options.
Speaking of which, you can check out or reviews of the best online sportsbooks. This includes popular sportsbooks like BetOnline, SportsBetting.ag, and Bovada.
Casino Gaming
Casino gaming remains a cornerstone of the American gambling experience. IRL casinos, often referred to as Brick-and-Mortar or land-based venues, attract millions of visitors each year. From slot machines to table games like blackjack, roulette, and poker, these casinos provide a wide range of entertainment.
Over the past decade, online casinos have emerged as a strong alternative to IRL gaming. Online casinos add convenience and accessibility: players can enjoy digital versions of classic table games and slots. Meanwhile, IRL venues still deliver the excitement of in-person play.
State regulations determine where casinos can operate and whether online versions are available. While some states only allow tribal or commercial land-based casinos, others have embraced full online casino markets.
This creates a patchwork system, but also provides players with diverse options across the country.
Online Casinos (iGaming)
Online casinos let players enjoy slots, table games, and poker from anywhere. iGaming has grown rapidly in states like New Jersey, Pennsylvania, and Michigan. Known as “the big three”, these states offer full online casino markets alongside IRL Brick-and-Mortar venues. Players can enjoy everything from digital blackjack and roulette to themed slot games.
Currently, more states are exploring online casino regulation and licensing. This includes West Virginia, Delaware, Connecticut, and Rhode Island.
Fewer states have legalized online casinos than they did with sportsbetting but for players all around the US there are international online casino options like Online Casino Games, Wild Casino, and Lucky Bonanza Casino that provide safe and highly enjoyable experiences for real money play.
Looking for trusted real money online casinos? Check out our list of top online casinos to find trusted platforms in your state.
Lotteries
Lotteries are among the oldest and most widely played forms of gambling in the USA. Almost every state operates a lottery, offering tickets at retailers and, in some states, online.
The most popular types include national jackpot games like Powerball and Mega Millions, as well as state-specific draw games and scratch-off tickets.
Lotteries generate significant revenue for public programs, especially education and community initiatives. Online platforms make it easier for players to buy tickets, check results, and manage winnings from anywhere in legal states.
Despite their simplicity, lotteries remain one of the most accessible and widely enjoyed gambling forms in the country.
Sweepstakes and Sweepstakes Casinos
Sweepstakes casinos offer a unique alternative to traditional online casinos. They operate legally in a majority of U.S. states by using a sweepstakes model rather than direct wagering, though this loophole is being attacked and closed by more and more states.
Notably, California recently banned sweepstakes casinos, preventing platforms from operating under this model in the state.
Players use virtual credits or tokens to play slots, blackjack, poker, and other games. Popular platforms include Chumba Casino, LuckyLand Slots, and Pulsz Casino.
These casinos are generally legal because players can win prizes without risking real money. Most states permit sweepstakes-style gaming, even where real-money iGaming is restricted. However, some states, like Washington and Hawaii, have stricter rules.
Sweepstakes casinos provide low-risk entertainment and a legal way to experience online casino games. Many platforms offer bonus credits or free entries, giving players multiple ways to enjoy games safely.
Looking for trusted sweepstakes casinos? Check out our list of the best sweepstakes casinos to find platforms that are safe in most states.
Daily Fantasy Sports (DFS) and Skill Games
Daily Fantasy Sports (DFS) platforms let players build virtual sports lineups and compete for real money prizes.
Operators like DraftKings, FanDuel, Underdog, and PrizePicks dominate this space. In fact, before becoming online sportsbook behemoth, DraftKings and FanDuel were the duopoly dominating the market in the USA.
DFS is legal in many states, though some classify it differently from traditional gambling due to its skill component. States continue to refine regulations to clarify DFS legality and expand access but this may be moot to point since sports betting is also being legalized.
DFS is an ersatz of sports betting for many and what players were using before local sportsbook became available in their state to get their gambling on.
Now these same players might prefer using their DFS skills to bet on prop betting which requires the same analysis method: evaluating specific players performances rather than teams.
Poker
Poker, the quintessential American gambling game, remains a popular gambling option in both IRL and online settings. Brick-and-Mortar casinos host tournaments and cash games nationwide, while online platforms like BetMGM, World Series Of Poker, BetRivers, PokerStars, and 888Poker provide regulated real money play in multiple states.
States such as New Jersey, Pennsylvania, Michigan, Delaware, and Nevada have fully regulated and licensed online poker within their respective jurisdictions. Meanwhile, West Virginia, Connecticut, and Rhode Island have legalized poker laws, but popular operations are yet to establish a foothold due to the small size of these markets.
Regardless of the states where you live, you can still play online poker at international gambling sites. If you are looking for trusted online poker platforms in the U.S., please check our list of the best U.S. online poker sites to find safe options to play today.
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Horse Racing / Pari-Mutuel Betting
Horse racing has deep roots in the U.S. gambling landscape. It is quite certain that as soon as the American society took roots on the continent, horse racing started alongside it.
Pari-mutuel betting is legal in most states, allowing players to wager on races at tracks or online racebooks. Major events like the Kentucky Derby, Preakness Stakes, and Belmont Stakes attract nationwide attention.
Land-based racetracks remain the primary IRL venues, while online platforms like TVG, or Twinspires offer remote wagering.
States regulate racing through dedicated commissions to ensure fair play and integrity. Despite some declines in attendance, horse racing continues as a resilient and traditional gambling activity.
Looking for trusted online racebooks? Check out our list of the best U.S. online racebooks to place bets safely and legally.
Conclusion
The U.S. gambling landscape is diverse and evolving rapidly. States now regulate sports betting, online casinos, poker, lotteries, and sweepstakes in unique ways.
While federal laws like the Wire Act and UIGEA still influence operations, state authority drives most legal activity. Players can enjoy both IRL Brick-and-Mortar casinos and online platforms, depending on local laws.
Platforms such as BetMGM, DraftKings, FanDuel are locally regulated but offshore gambling sites like BetOnline, Bovada, and SportsBetting.ag also provide safe and regulated options nationwide.
Stay informed about new state legislation, platform launches, and industry updates by visiting Betting News for the latest U.S. gambling news and top-rated online operators.