State vs. Federal Laws: Differences

In the United States, gambling is regulated tiered. States have "police power" to set where and how to play, who to license and what taxes to levy. Feds set the framework and red lines: interstate betting communications, online payments to illegal sites, tribal gambling law, and financial monitoring (AML). The key to understanding is the constitutional balance (the Tenth Amendment and anti-command) and a number of federal acts and court precedents.

1) What the state regulates and what the federation regulates

Field of states

Licensing and supervision of casinos, online casinos/iGaming, sports betting, sweepstakes, lotteries, "skins" and binding to ground partners.

Zoning and format: where halls/resorts are allowed, license limits, capital and suitability requirements, technical certification, responsible play standards, advertising, and state-level bonuses.

Taxes and fees: rates on GGR/income, special purpose funds.

Feds Field

Interstate aspect and communications: The historic Wire Act (1961) restricts interstate wire communications for betting on sporting events (scope clarified by courts in 2021).

Online payments: UIGEA (2006) prohibits accepting payments related to illegal Internet gambling under federal or state law (exceptions - fantasy under conditions, etc.).

Tribal law: IGRA (1988) created NIGC and classes of games, cemented the compact "tribe-state" model for Class III. The Cabazon decision (1987) paved the way for IGRA by limiting the application of statutory prohibitions to tribal play.

Sports betting and anti-commandeering: The Murphy v. NCAA case (2018) overturned PASPA - Congress cannot bar states from allowing betting (states are free to regulate themselves).

Finmonitoring (AML): casinos - "financial institutions" under the Bank Secrecy Act and CFR FinCEN/31 rules (AML program, CTR/SAR).

Advertising and consumer protection: The FTC requires truthful, unscrupulous and non-television advertising (including for betting/casino promotions).

2) Five "demarcation lines" in practice

1. Anti-command and state sovereignty

In Murphy (2018), the Supreme Court affirmed: Congress can directly regulate gambling but cannot command states what they are prohibited or permitted to do. The repeal of PASPA restored the freedom for states to legalize sports betting (retail/mobile).

2. Online: "intrastate - you can, interstate - you can't"

States can run iGaming/poker within their borders when geolocating and complying with UIGEA. Interstate data/betting transmission - Wire Act zone, which, after a dispute between the Ministry of Justice and the courts, is interpreted as applicable to sports betting (case NH Lottery v. Rosen, 1st Cir., 2021).

3. Tribal game vs. state law

After Cabazon (1987), state bans do not work as hard on tribal gambling lands; IGRA (1988) established a system of game and compact classes. This is a federal framework on top of local tribe-state agreements.

4. Money and compliance are always federal

Regardless of state, casinos (including online operations) fall under BSA/FinCEN: AML program, SAR/CTR, risk-based approach, IRS/FinCEN checks. Examples of practice and fines confirm the priority of the feds.

5. Advertising and Promo - Double Control

The state sets local restrictions (frequency, disclaimer language, bonuses), but the federal FTC requires truthful, non-misleading communications (including influencer disclaimers and promo terms).

3) What it looks like in product and operations

State license: launch is impossible without it; often a "tie-in" to a ground partner/casino (skin/host) is required.

Geofencing and KYC/AML: Geolocation provides intrastat; AML control and reporting for Title 31/31 CFR - federal must-have.

Payments: payment providers are required to filter transactions in accordance with UIGEA and state law; inconsistency threatens sanctions.

Content and technical control: RNG/game certification and audits (staff rules + general principles of fairness); maintenance of fatal event logs.

Advertising: the terms of bonuses and "free betes" must be disclosed transparently; "creative" is checked by both state bodies and the FTC.

4) The cases that changed the field

California v. Cabazon Band (1987): limited state intervention in the tribal game, a premise of IGRA and the modern tribal sector.

IGRA (1988): classes I-III, NIGC, compact - tribal gambling architecture.

UIGEA (2006): Banks/processing should not serve illegal online gambling.

Murphy v. NCAA (2018): States gained the right to independently legalize sports betting.

NH Lottery v. Rosen (1st Cir., 2021): Wire Act is limited to sports betting, reducing uncertainty around lotteries and iGaming channels.

5) Checklist for operator/supplier

1. Jurisdictional Map: what is allowed by the state (iCasino, poker, sports), what taxes/licenses and advertising restrictions.

2. Wire Act/UIGEA assessment: the architecture of traffic and payments should exclude interstate "intersections" and illegal operations.

3. BSA/FinCEN program: SAR/CTR, risk model, training, control testing; readiness for IRS/FinCEN checks.

4. Tribal scenarios: when working with tribal partners - accounting for IGRA and compact conditions.

5. Advertising and bonuses: FTC compatibility, transparent T & Cs, control of affiliates and influencers.

The state defines "how and where we play," the federation defines "what cannot be crossed" (interstate betting communication, illegal payments, AML, tribal frame, honest ads). The Cabazon and Murphy precedents strengthened the sovereignty of tribes and states, and the Wire Act/UIGEA/BSA form federal limits. A sustained product launch in the U.S. requires a dual discipline of a flawless staff license and continued compliance with federal communications, payments, AML and advertising regulations.