Federal Law Regarding Sports Gambling

Posted on  by admin

There is a lot of hype surrounding the gambling industry in the United States, specifically the online gambling industry. In recent years, there has been an increasing demand for online gambling options, forcing states to amend their gambling legislation one way or another. The demand has also forced the Federal government to look at US online gambling laws and how they should be applied.

The gambling debate is split, with some states supporting it while others are opposed. This divide has driven a lot of players to offshore gambling sites, though potential bettors and gamblers have many legal questions about this market. All the state-based and federal laws regarding domestic gambling and offshore gambling can become convoluted, leading to confusion and misconceptions over what is allowed and what isn’t.

The Federal government has designated some forms of gambling as prohibited within the US and has created laws that are non-negotiable in the regulation of such prohibited activities. On this subject, the Federal government may outlaw any form of gambling and states must abide by their law as Federal regulation will always trump state laws. The Professional and Amateur Sports Protection Act was the overarching federal law governing sports betting in the US. Passed in 1992, PASPA banned 46 states from having any type of state-sponsored sports betting, including physical and online sportsbooks.

Using this site as a resource, you will be able to obtain insight concerning the various state and federal laws surrounding US online gambling and offshore gambling. The important thing to ensure when participating in any form of online gambling is that you are engaging in legitimate and legal activity. If you are properly informed on the legalities of online gambling, whether domestic or offshore, you can make informed decisions and remain within the legal confines of the industry, allowing you to participate in gambling entertainment with peace of mind. This is actually the most critical element to understanding legal offshore gambling opportunities.

Gambling

Is It Legal For US Residents To Gamble Online At Offshore Gambling Sites?

For the most part, yes. As of now, there are no US federal laws that ban American bettors from placing bets with legal offshore gambling sites as long as they are legitimately licensed and regulated in their home countries.

The federal laws that apply to online gambling and sports betting will be explained in further detail in the next section.

That said, at the state level, there are two states that include language in their gambling legislation that could apply to offshore sites. These are Washington and Connecticut. We urge all interested bettors to comply with the gambling laws in their states and to be highly selective when choosing any destination – either domestic or offshore – at which to gamble.

Unlawful Internet Gambling Enforcement Act—UIGEA

Contrary to popular belief, the scary-sounding Unlawful Internet Gambling Enforcement Act (2006) does not apply to individual bettors or even to placing bets online. The UIGEA strictly deals with US-based banks and other financial institutions that knowingly process transactions associated with unregulated gambling.

Upon first glance, many believe this law means that US bettors cannot place any type of bet online or participate in any form of online gambling, but that is simply not the case.

Our page on the Unlawful Internet Gambling Enforcement Act explains the law in further detail. This includes how the law affects online gambling (from a player and industry standpoint), how the industry has reacted to it, and what it means for American bettors looking to interact with offshore gambling sites.

Federal Wire Act of 1961

The Federal Wire Act (aka the Interstate Wire Act) was passed in a time where the gambling landscape was quite different than it is now. Passed under President John F. Kennedy, the Wire Act aimed to clean up the industry, which at the time was heavily influenced by organized crime syndicates.

The law pertains to using wire transmissions (and now, the Internet) for sending and receiving gambling information. This definition has been debated as to whether it encompasses all forms of online gambling. The Department of Justice issued a formal opinion in 2011 that limited the law to sports wagering, though this was overturned in a DOJ opinion in 2019 that claimed it applied to all forms of gambling. That, in turn, was promptly overturned by a federal judge, and the Wire Act is now back to being a sports-betting-only regulation.

While the Federal Wire Act does prohibit all US-based sportsbooks from accepting wagers across state lines (whether brick-and-mortar or online), it does not have any bearing on legal offshore sports betting sites, nor does it criminalize individuals from placing wagers of any kind. The regulation applies exclusively to domestic sportsbook operators. There is more information on our page explaining the Federal Wire Act in greater detail.

Professional and Amateur Sports Protection Act—PASPA

The Professional and Amateur Sports Protection Act was the overarching federal law governing sports betting in the US. Passed in 1992, PASPA banned 46 states from having any type of state-sponsored sports betting, including physical and online sportsbooks. Realistically, it gave Nevada a monopoly on sports betting, as the other exempted states were not able to offer single-game wagering.

In roughly 2012, New Jersey initiated a series of legal challenges as to the constitutionality of PASPA, and on May 14, 2018, the case was finally heard by the US Supreme Court. PASPA was overturned in a 6-2 vote (with one abstention), allowing each state to install and regulate its own sports betting industries. The case in question is Murphy v. NCAA.

Our page on the Professional and Amateur Sports Protection Act goes more into detail on why the law was passed, the specific ramifications of it, and how it was finally overturned as a violation of the 10th Amendment.

USA Offshore Gambling Laws FAQs

How Do US Federal Laws Affect The Gambling Industry In The US?

The two federal laws that impact the American gambling industry as a whole are the Interstate Wire Act and the UIGEA. While PASPA was the the most restrictive anti-gambling law, that has been overturned by the SCOTUS and is no longer in effect.

Fortunately, the Wire Act and UIGEA are rendered moot by legal offshore gambling sites where they have no jurisdiction, and since neither law affects individual gamblers in any way, it is safe to wager real money with these overseas betting operators. The advent of Bitcoin in particular has obviated the UIGEA to the point of irrelevancy.

Is It Legal For Me To Use Offshore Gambling Sites?

Excepting Washington and Connecticut residents, it is perfectly legal for Americans to enjoy offshore gambling sites as long as the site at which they are betting is legally sanctioned and regulated outside of the United States. There are numerous offshore gambling sites online, so we urge American bettors to consider input from industry professionals as a way to vet the sites they are interested in.

The team that created this resource guide have more than 30 years of experience in the industry and have determined which sites are safe to use and provide legal, high-quality gambling experiences. There are no US federal laws that make betting with offshore gambling sites illegal as long as they meet the criteria mentioned above.

What Should You Look For In An Offshore Gambling Site?

When determining which offshore gambling site to use, there are several things to consider. First, you should verify that they are legally sanctioned and possess all the necessary licensing and certifications to operate. If the site has these, they should make the documentation readily available. Also, you should pay attention to their security protocols to make sure your personal and financial information is kept safe.

The next thing to look out for is the quality of their betting services, software performance, banking suites, and customer care options. Most reputable offshore gambling sites will also have bonuses and promotions available.

Online gambling sites span various markets, including legal offshore casinos, sportsbooks and poker rooms, as well as racing, bingo, lottery and many others. Each group has its own policies, rules, bonuses, etc. Any reputable site will use audited, certified RNG (Random Number Generator) technology for their casinos and poker rooms to ensure fair play.

Legal licensing and regulation from respected governing jurisdictions means that these sites are held accountable and have to maintain high standards. Reputable offshore gambling sites want to keep their level of credibility within the industry, so they will comply with standards set out by gambling authorities and watchdog agencies.

Will There Be Any State Licensed Online Gambling Options In The Near Future?

Some states already have some forms of state sanctioned online casino or poker gambling, including Nevada, New Jersey, Pennsylvania, and Delaware. West Virginia is able to offer online casino gaming but has not yet done so.

A number of other states are currently involved in discussions about the possibility of state regulated online gambling legalization. US states currently possess the authority to legalize online casinos, poker rooms, sportsbooks, pari-mutel wagering (i.e. horse racing betting), bingo, and lottery games. With the proliferation of legal sports betting since the overturn of PASPA, however, we expect more states to offer full online casino action in the near future.

WASHINGTON (AP) — The Latest on the Supreme Court ruling striking down a federal law that bars gambling on football, basketball, baseball and other sports in most states (all times local):

10:45 p.m.

The Supreme Court has cleared the way for states to legalize betting on sports, breaking a longtime ban and creating a potential financial boon for states and the gambling industry. The first bets could be placed within weeks.

The high court has struck down a federal law that had barred betting on football, basketball, baseball and other sports in most states. States that want to take advantage of the ruling now will generally have to pass legislation to allow sports books to open.

Sports leagues had expressed concerns about any expansion of sports gambling. But the ruling also could be seen as bringing a popular activity out of the shadows. Americans wager about $150 billion on sports each year illegally, according to the American Gaming Association.

__

6:15 p.m.

An oddsmaker at one Las Vegas resort sees little chance that betting in other states will siphon business away from Las Vegas.

Westgate race and sports book chief Jay Kornegay calls Monday’s U.S. Supreme Court decision allowing sports betting in states an opportunity for which sports books have been preparing for a long time.

Kornegay says tourists don’t just come to Las Vegas to wager at the sports book. They also visit restaurants, casino tables, stores, pool venues, theaters and nightclubs.

Kornegay predicts crowd will still come for big events like the NCAA basketball March Madness tournament, the NFL Super Bowl, boxing and mixed martial arts fights, and the Kentucky Derby and Breeders’ Cup horse races.

He says people who are introduced to legal gambling in their home states might then want to visit Las Vegas.

____

5:50 p.m.

Casino operator MGM Resorts International does not expect the U.S. Supreme Court’s decision on sports betting to have a negative impact on the Las Vegas market.

CEO Jim Murren tells The Associated Press the company has polled customers in focus groups around the U.S. and found that widespread sports betting opportunities will not keep fans from traveling to the nation’s gambling mecca.

Murren says people will want to visit the market leader, which will take them to Las Vegas’ sports books.

Federal Law Regarding Sports Gambling

The Las Vegas-based company operates more than 10 properties there and several more in the U.S. and abroad.

Murren says the ruling will increase consumer interest in sports.

__

5:45 p.m.

An executive with a company that owns casinos in 18 states and Ontario, Canada, says the U.S. Supreme Court ruling on sports gambling could begin a “land rush” for states to enact sports wagering laws.

Penn National Gaming senior vice president Eric Schippers says West Virginia is already at work on regulations to enable sports betting in that state by the start of the NFL season in September.

Federal law against sports gambling

Penn National operates the Hollywood Casino at Charles Town Races, about 60 miles west of Washington, D.C.

The company also operates the Tropicana resort on the Las Vegas Strip and the M Resort in suburban Henderson, Nevada.

__

4:15 p.m.

Longtime sportscaster Brent Musburger says prohibition didn’t work with liquor and prohibition didn’t work for sports betting.

The former ESPN announcer now heads a sports betting broadcast called Vegas Stats and Information Network.

He’s calling Monday’s U.S. Supreme Court ruling on sports betting in states a healthy thing for sports and the public.

Musburger says sports betting and influence scandals are rare, and all that bookmakers in Las Vegas want is integrity and honesty.

He says the ruling takes sports betting “out of the underground and makes it mainstream.”

Gambling

____

3:50 p.m.

Casino giant Caesars Entertainment says you can bet it will expand its sports wagering business to states where it says secure and responsible gambling is legalized.

It’s not talking yet about details.

Company president and chief executive Mark Frissora says Monday’s ruling by the U.S. Supreme Court could end illegal sports wagering by replacing it with a well-regulated alternative that sports fans can trust.

Las Vegas-based Caesars operates 47 casinos in 13 U.S. states and five countries.

Frissora says the company will announce its specific approach to adding sports books after regulations evolve from the court ruling.

__

3:45 p.m.

New Jersey lawmakers have introduced new legislation that would regulate and tax sports betting, hours after the U.S. Supreme Court cleared the way for states to legalize it.

A bill sponsored Monday by Democratic state Senate president Steve Sweeney and others would set an 8 percent tax rate for bets made in person at casinos and racetracks, and 12.5 percent on online bets.

The state Division of Gaming Enforcement, Casino Control Commission, and state Racing Commission would all be involved in regulating sports bets that would be placed through casinos and racetracks.

The bill would presumably supplant one introduced last week that would have paid an “integrity fee” to the sports leagues, in effect giving them a cut of the proceeds from sports betting.

____

2:40 p.m.

The National Council on Problem Gambling says the high court ruling offers the largest potential expansion of gambling in U.S. history, and predicts many more people will develop gambling problems or worsen existing ones unless steps are taken to minimize risks.

Federal Law Against Sports Gambling

Marlene Warner, the group’s board president, says any governmental body and sports league that receives money from sports betting revenue should be required to dedicate funds to prevent and treat gambling problems.

Earlier Monday, the Supreme Court struck down a federal law that bars gambling on football, basketball, baseball and other sports in most states, giving states the go-ahead to legalize betting on sports.

__

2:35 p.m.

The chairman of the Senate Finance Committee says he’ll propose legislation that would establish standards for sports betting that will uphold the integrity of the game, protect consumers and safeguard against underage gambling.

Republican Sen. Orrin Hatch of Utah says Congress cannot allow uneven enforcement and a patchwork of state laws regarding sports betting result in a “race to the regulatory bottom.”

Hatch is reacting after the Supreme Court struck down a law that he helped write in 1992 that forbade state-authorized sports gambling, with some exceptions. It made Nevada the only state where a person could wager on the results of a single game.

Hatch says the 1992 law was created to protect the integrity of athletics from corruption. He says the upcoming legislation will have that focus, too.

__

12:55 p.m.

The NFL plans to ask Congress “to enact a core regulatory framework for legalized sports betting” following the Supreme Court’s ruling that would allow sports wagers in most states.

In its statement, the NFL noted that “Congress has long recognized the potential harms posed by sports betting to the integrity of sporting contests and the public confidence in these events.”

The NFL also said it will work closely with teams to ensure that any state proposals “protect our fans and the integrity of our game.”

____

12:50 p.m.

The PGA Tour has restated its support of sports gambling following a Supreme Court ruling that overturned a federal law barring gambling in most states. The tour’s position is similar to the NBA and Major League Baseball on gambling issues and it says it will continue to work with state legislators and regulators.

The tour last year established a program that requires players on all six circuits the PGA Tour manages to take part in an online tutorial that, among other things, illustrates some of the far-reaching effects of gambling.

“We believe that regulation is the most effective way of ensuring integrity in competition, protecting consumers, engaging fans and generating revenue for government, operators and leagues,” the tour said in a statement.

___

12:45 p.m.

NBA Commissioner Adam Silver says the league remains a favorite “of a federal framework that would provide a uniform approach to sports gambling in states that choose to permit it.”

Silver said the league would “remain active” in ongoing discussions with state legislatures in the wake of the Supreme Court’s ruling. Silver added that “regardless of the particulars of any future sports betting law, the integrity of our game remains our highest priority.”

___

11:45 a.m.

Major League Baseball has issued a statement saying the Supreme Court ruling will have “profound effects” on the league. It said “our most important priority is protecting the integrity of our games.”

MLB said it would continue supporting legislation “that creates air-tight coordination and partnerships between the state, the casino operators and the governing bodies in sports toward that goal.”

__

10:11 a.m.

The Supreme Court has struck down a federal law that bars gambling on football, basketball, baseball and other sports in most states, giving states the go-ahead to legalize betting on sports.

The Supreme Court on Monday struck down the Professional and Amateur Sports Protection Act. The 1992 law barred state-authorized sports gambling with some exceptions. It made Nevada the only state where a person could wager on the results of a single game.

Federal Law Regarding Sports Gambling Laws

One research firm estimated before the ruling that if the Supreme Court were to strike down the law, 32 states would likely offer sports betting within five years.

Federal Law On Sports Betting

The court’s decision came in a case from New Jersey, which has fought for years to legalize gambling on sports at casinos and racetracks in the state.