Online gambling in the USA: laws and mobile platforms

Online gambling in the USA: laws and mobile platforms (full text)

💡 Status as of October 17, 2025.

1) Federal box: What the U.S. allows and bans

Wire Act (1961): Bans interstate transmission of sports betting; since 2011, DoJ's position has been that the act does not apply to casino games and poker (disputes 2018-2021 have not changed the practice of most states).

UIGEA (2006): prohibits accepting payments at "prohibited Internet rates" and imposes obligations on payment systems; does not legalize or criminalize the games themselves - state laws decide everything.

PASPA: The Supreme Court in Murphy v. NCAA (2018) struck down a federal ban on states legalizing wagering - from now on, each state decides the online wagering issue itself.

Practice: legal online activity should take place within the state (geoblock at the borders), with strict KYC/AML, logging and reporting.

2) Legalization card: casino/poker vs. sports

Online casinos (iGaming) and/or online poker by 2025 are allowed in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia (plus Nevada - online poker).

Mobile sports betting is already legal in most states; the example of New York City with a high tax rate (see below) shows the scale of the market. For the federal picture, see summary reviews and tax maps.

Interstate poker (general pools): MSIGA operates - interstate compact, joined by Pennsylvania and West Virginia in 2024-2025; operators begin to pool between MI-NJ-PA-DE-NV-WVs.

3) Geolocation and KYC: why apps are "cutting" boundaries

Regulators require that rates be accepted only from those who are physically in the state - this is provided by geolocation providers (GPS, Wi-Fi triangulation, IP, anti-VPN/remote access).

In practice, geolocation is the "skeleton" of mobile betting: 122 + million location checks were processed at Super Bowl 2024, which demonstrates the scale of online activity.

Providers (for example, GeoComply) and operators themselves are developing anti-fraud against proxy-betting and bypassing geo-restrictions.

4) Taxes: States are'tweaking' the economy

New York (mobile sports): The 51% GGR tax is one of the highest in the country.

In a number of states, point prohibitions and restrictions are discussed and introduced (for example, prohibitions of "microbets" or individual prop markets; cleaning advertising terminology).

For online casinos, tax rates vary markedly (from "moderate" to high), and in some jurisdictions (for example, RI) the market is still expanding. Tax summary tables regularly update industry trackers.

Player Tax (IRS): operators issue W-2G when winning $1,200 + in slots/bingo, $1,500 + in keno, $5,000 + in tournament poker, etc.; winnings are declared as income, losses can only be declared within the winnings.

5) Advertising, payments and responsible play

After 2018, states are gradually tightening advertising (banning terms like "risk-free," time/channel restrictions, age targeting 21 +), and also introducing bans on some prop bets in the interests of sports integrity.

Credit cards: some states and/or operators limit replenishment from credit cards; in 2025, a large operator announced the rejection of credit cards in a number of jurisdictions after fines - a trend towards "de-risking" payments.

6) Top mobile platforms and where they are strong

FanDuel, DraftKings - leaders in betting market share; actively develop kasino applications where iGaming is allowed.

BetMGM, Caesars are strong sport + casino + poker ecosystems in states with iGaming.

Fanatics Sportsbook/ESPN BET is a "new wave" of sports applications expanding its presence in 2024-2025.

Poker networks: WSOP, BetMGM Poker and others combine pools within MSIGA (see MI-NJ-PA-DE-NV-WV).

💡 Player Tip: Choose licensed apps, check geolocation, set deposit/time limits, keep transaction history.

7) What matters to the operator (launch roadmap)

1. Legal perimeter: choose states, evaluate licensing, taxes (including promotional deductions), advertising framework and integrity of sports.

2. Technique: KYC/AML, geolocation, anti-VPN/proxy, logging, risk-triggers and "duty of care."

3. Payments: map of acceptable methods by state (accounting for bans on credit cards), limits and fraud monitoring.

4. Poker Pool: Consider MSIGA to scale liquidity and product matrix.

8) FAQ (for brief orientation)

Can I play online casinos "all over the country"?

No, it isn't. Legal - only in states with iGaming (today: CT, DE, MI, NJ, PA, RI, WV; online poker also in NV). Geolocation blocks out-of-state play.

Why can't I go to an app near the state line?

Because it's the operator's responsibility to make sure you're physically in a legal state; If the VPN signal is weak/used, access is blocked.

What are the taxes of mobile operators? sports in NY?

51% from GGR, one of the highs in the U.S.

Do I need to declare winnings?

Yes I did. For large winnings, the operator will give W-2G (for example, slots with $1,200 +), and all winnings are taken into account in the declaration; losses can only be claimed within winnings.

The United States lives according to the "state decides" formula: after the abolition of PASPA, mobile sports betting was legalized in most states, and iGaming remains a niche of seven jurisdictions (plus NV for poker). Geolocation, KYC and reporting - basic conditions for applications; taxes and advertising vary widely by state (from NY-level 51% GGR to moderate regimes). For the player, the key to security is a state license + self-control tools; for the operator - a clear compliance architecture and the ability to live in a multi-state rule matrix.