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History of casino legalization in the United States
The history of legalization of casinos in the United States is a series of "waves" of prohibitions and legalizations, where the federal framework sets the general outline, and the states determine the details: who and how can accept bets, where the gambling zone is allowed, how to levy taxes and what standards of responsible play to apply. The formation of the industry went through four key stages: (1) legalization in Nevada (1931) and the Las Vegas model, (2) approval of casinos in New Jersey (1976) and the "east window" of Atlantic City, (3) the growth of tribal casinos after the IGRA law (1988) and the regional expansion of riverbots in the 1990s, (4) commercialization and modernization 2000s-2020s, including sports betting after 2018.
Pre-regulatory period: from the "gold rush" to the era of Prohibition
XIX century: gambling accompanies the frontier - card parlors and steamboats on the Mississippi. Regulation is fragmentary, moral waves periodically tighten the regime.
The beginning of the 20th century: national reform movements, anti-corruption campaigns and Prohibition (1920-1933) strengthen prohibitions; excitement fades into the shadows, but does not fade.
Nevada, 1931: The start of the legal era
The Great Depression led to pragmatism: Nevada would legalize casinos to attract capital and jobs.
Las Vegas is becoming an experimental venue: first downtown and Fremont Street are the center, later the Strip with resort megaprojects, forming an "integrated resort" (casino + hotel + show + F&B).
Supervision is gradually being professionalized: licensing, control of capital sources, verification of the reliability of owners and employees.
Atlantic City, 1976: East Window
The New Jersey referendum (1976) opens up the second legal jurisdiction of casinos in the United States, but with a geographical limitation - the city of Atlantic City.
Model: Competing with Vegas for the mass tourist; betting on Broadway-style entertainment, conventions and East Coast bus tours.
The New Jersey regulator (strict compliance, reporting, owner control) forms a reputation as a "high standard."
Tribal Casinos and IGRA, 1988: The Industry's Third Pillar
Origins: Supreme Court decisions on tribal sovereignty in economic activity push Congress to pass the Indian Gaming Regulatory Act (IGRA, 1988).
The essence of IGRA:- Classification of games (Class I-III);
- Creation of the National Indian Gaming Commission (NIGC);
- Need for state-tribal agreements (compacts) for Class III games (slots, board games).
- The result: the rapid growth of tribal casino resorts, diversification of tribal incomes, investment in infrastructure and social programs.
Riverbots and regional markets of the 1990s
The Midwest and South (Iowa, Illinois, Missouri, Mississippi, Louisiana, etc.) launch riverboat casinos or "floating "/mooring sites as a politically acceptable compromise.
Evolution of the rules: from real flights to stationary "barge casinos"; gradual legalization of full-fledged land casinos.
Effect: Regional competition, the emergence of a multi-center gambling industry card outside Nevada and New Jersey.
Commercial expansion of the 2000s-2010s
The states of Pennsylvania, Ohio, Maryland, Massachusetts, New York, etc. allow commercial casinos for tax base growth and jobs.
Racinó (racetracks + VLT/slots) are spreading - another compromise format.
Tax models vary: from moderate (to attract investment) to high (emphasis on budget revenues), which affects the structure of the market and the quality of the product.
Federal framework and online challenges
Wire Act (1961): historic law against interstate wire rates; the interpretation changed, affecting online verticals.
UIGEA (2006): aimed at payment channels of unlicensed online gambling; banks and processing under tight control.
After 2011: a number of states launch online poker and iCasino (for example, New Jersey, Pennsylvania, Michigan, Delaware, West Virginia), with geolocation and strict KYC/AML. Interstate poker compacts allow liquidity between individual jurisdictions.
Sports betting: From PASPA to turning point 2018
PASPA (1992) effectively froze the expansion of sports betting, giving exceptions to Nevada and several other jurisdictions with special conditions.
Murphy v. NCAA (2018): The Supreme Court overturns PASPA, returning the power to states to regulate sports betting.
After 2018: avalanche-like legalization of online and retail sports books. States choose between state lottery operators, open commercial licenses, or hybrid models; requirements for sport integration, monitoring and advertising are drawn up.
Regulation and Oversight: Tiered Architecture
Federal level: framework laws (Wire Act, UIGEA), tribal supervision (NIGC), financial regulations (BSA/AML).
Staff level: commissions for games (Nevada Gaming Control Board/Commission, New Jersey DGE and analogues), issuing licenses to operators, suppliers, key employees; audit, RNG/slot technical certification, responsible play.
Tribal treaties: compacts define tax-like deductions, zoning, types of games, and dispute resolution mechanisms.
Economic impact
Jobs and taxes: The industry supports employment in hospitality, F&B, construction, IT and security; taxes and contributions to education/infrastructure funds are frequent political motivations for legalizations.
Tourism and MICE: Integrated resorts shape supply chains, congress traffic and international marketing of cities.
Social risks: regulators introduce responsible play, self-exclusion, deposit limits, advertising restrictions, financing for the treatment of gambling addiction.
Modern map and models
1. Nevada: Licensing "gold standard," high competition, mega resort hotels, creative shows and global branding.
2. New Jersey: A powerful iGaming ecosystem and technology-focused DGE.
3. Pennsylvania, Michigan, New York: high tax rates on iGaming/sports; large budget-forming markets.
4. Oklahoma, California, Florida, etc.: the tribal sector dominates (with different stages of development depending on compact).
5. Southern and Midwestern states: from "riverbots" to stationary resorts; hybrid models with racino.
Timeline of key milestones (brief)
1931 - Nevada legalizes casinos.
1976 New Jersey referendum: Atlantic City casino.
1988 - IGRA: Tribal Gambling Business Framework, creation of NIGC.
1990s - Riverbots and regional markets.
2006 - UIGEA: restrictions on payment channels of unlicensed online gambling.
2011 + - States launch regulated iPoker/iCasino.
2018 - PASPA repeal: A wave of legalized sports betting.
Why the US is a unique case
Federalism creates "laboratories" of regulation: different tax rates, advertising rules, cap on licenses, requirements for localizing servers/data.
A triple structure (commercial, tribal and lottery models) allows different interests to coexist.
Technological maturity: clear KYC/AML, geofencing, integrity monitoring in sports and content certification provide a balance between revenue and consumer protection.
Legalization of casinos in the United States is not a single law, but a mosaic of state, tribal, and federal decisions. The journey from desert saloons to integrated resorts and mobile betting apps took nearly a century. The vector is obvious: regulation instead of prohibition, compliance instead of spontaneity, diversification of tax and tourist effects instead of dependence on one or two jurisdictions. In the coming years, the key topics will remain balancing the tax burden, expanding iGaming where restrictions still apply, advertising/responsible play standards, and further integrating technological solutions that increase market transparency.