Crypto Casino
Torrent Gear
How online gambling is regulated in the United States by state
1) Federal context: framework, not prohibition
Main federal acts:- The Wire Act (1961) - prohibits the transmission of sports betting over interstate lines; its interpretation in 2018-2019 was clarified: the act concerns only sports betting, not casinos and poker.
- The Unlawful Internet Gambling Enforcement Act (UIGEA, 2006) - does not prohibit online gambling, but restricts payment transactions, obliging banks to block illegal transactions.
- Indian Gaming Regulatory Act (IGRA, 1988) - regulates casinos in indigenous territories; some tribes now operate online operations as well.
The federal level sets the framework for security, financial compliance and anti-laundering, but states decide everything.
2) New Jersey is a pioneer and model for the rest
New Jersey Division of Gaming Enforcement (DGE).
Licensing: online casinos operate through a partnership with Atlantic City land casinos.
KYC/AML: mandatory identification, geolocation, limits and reporting.
Taxes: 15% GGR on online casinos and 13% on online poker.
Features: One of the most mature ecosystems; operators partner with dozens of brands (DraftKings, BetMGM, Caesars, FanDuel).
New Jersey has become a precedent for legalizing online gambling: a successful model has demonstrated high levels of tax revenue and transparency of control.
3) Pennsylvania is the largest licensed market in the United States
Regulator: Pennsylvania Gaming Control Board (PGCB).
Launched: 2017-2019
Verticals: online casino, poker, sports betting.
Taxes: Some of the highest in the country - up to 54% GGR per slot
Requirements: local partnerships with offline casinos, strict KYC and deposit limits.
Pennsylvania demonstrates a "social model": strict RG policies, control of the pace of the game, filters by age and income.
4) Michigan is an example of multi-license harmony
Regulator: Michigan Gaming Control Board (MGCB).
Launch: 2021, with integration of online casinos and betting.
Affiliate model: Each licensed online operator is required to work through a local casino or tribal organization.
Taxes: 20-28% GGR (depending on vertical).
Features: First U.S. cross-staff online poker agreements (MGCB + Nevada + New Jersey interstate pool).
Michigan has become a "platform of experiments" for combining pools of players and standardizing Responsible Gaming tools.
5) Nevada - strict but symbolic
Regulator: Nevada Gaming Control Board.
Allowed: online poker only (via WSOP and limited platforms).
The reason for the restrictions: the protection of the land segment of Las Vegas and the high dependence of the budget on offline casinos.
Taxes: relatively low, but with high frequency of reporting and audits.
Nevada remains a symbol of traditional gambling and is cautious about the online segment.
6) Delaware is the first but "narrow" market
Launch: 2013, partnership with 888 Holdings.
Verticals: State-controlled online poker and casinos.
Model: centralized platform, limited number of operators.
Advantage: low taxes, simple structure.
Disadvantage: small population → low traffic.
7) Prohibition and gray states
Texas, Utah, Hawaii, Idaho - a complete ban on online gambling.
Florida, California, New York - at the time of 2025, they are negotiating partial legalization (most often - sports and poker betting).
Washington and Oregon - allow sports betting in a limited format (via tribal casinos).
8) Common standards for Responsible Gaming and KYC
Although the rules vary, most legalized states have implemented common elements:- Self-exclusion and cooling-off (through unified state registries).
- Deposit, time and loss limits.
- Mandatory geolocation. The player must be physically on staff.
- Training of RG and AML employees.
- Anti-fraud integration and behavioral pattern monitoring.
9) Taxes and the economy
The tax range for online casinos is 15% to 54% GGR.
For sports betting, 8% (Nevada) to 36% (Pennsylvania).
In most states, taxes go to education, infrastructure and anti-addiction programs.
The US has turned gambling into a "regulated market with a social budget": each state seeks to balance profit and harm control.
10) 2025 Trends
Cross-staff integration of poker and casino. Inter-jurisdictional agreements create pooled player pools.
Growth of B2B licensing. Software and payment providers receive separate permissions.
Responsible Gaming Extension: Stricter triggers, notifications, and behavioral analytics integration.
Regulation of crypto payments and blockchain games. First pilot permits (Nevada, Michigan).
Mergers of media and operators. Content brands (ESPN, Barstool, Fox Bet) become entry points for gambling.
The American online gambling model is a puzzle of 50 different modes. Instead of a single license, there is a system of local permissions based on partnerships, geolocation and tax compromises.
But the general trend is clear: The U.S. is moving toward a mature, licensed online marketplace, where RG/KYC/AML control is becoming the standard and interstate competition the engine of innovation. By 2030, most major states are expected to allow online casinos and betting, turning the federal "mosaic" into a sustainable and technological ecosystem.