iGaming Regulations in the USA and Current Situation in Each State


The internet became an indispensable part of everyday life by 2010. Unbelievably, there wasn’t any legal real money gambling or iGaming site in the United States. Some offshore companies gave opportunities to American players through somewhat illegal platforms, but that was it.

2011 saw the USA government shut down the largest internet poker websites. It also declared interstate online gaming illegal. Realizing the impact of interstate gambling and the vacuum the ban created, states started passing laws legalizing online intrastate iGaming.

Since 2011, more states have changed their mindset. They now allow players to play against each other over the state lines. Legal iGaming gives states the upper hand. The authorities require certain jobs and equipment to stay within state boundaries. This means that tax and licensing fees go to the state government.

The iGaming Regulation Structure in the USA

Unlike Europe and the rest of the world, iGaming in the USA does not occur from the cloud. iGaming is only possible through contractual partnerships. These partnerships are between the gaming platform operators and licensed brick and mortar casinos. They focus on revenue-sharing.

The number of land-based casinos is minimal, making iGaming limited. Moreover, overseas operators experience some unique challenges, such as the expense of marketing.

Regulatory requirements for the safety and security of data have brought on board many other industries. Such include the bank’s security affiliates, among many more.

Overturning of the PASPA and Online Casino Gambling in America

The Professional and Amateur Sports Protection Act of 1992 ended after the court struck it down on May 14th 2018. This led to an increase in sports betting sites in over 30 states throughout the country.

Online gaming has been in existence since 2013 through legal gambling sites. Through these platforms, most of which can be found on legitgambling.com, players can play using real money, legally.

The following states are on board with legal iGaming:

  • Connecticut
  • Delaware
  • New Jersey
  • Michigan
  • Pennsylvania
  • West Virginia

Delaware and New Jersey are not new in the game. Approval of iGaming happened nearly a decade ago.

iGaming Legislation in Different States

Some states are lagging behind on legislation. Indiana, for example, has two proposed bills that intend to legalize iGaming within the Hoosier State. These bills push for an 18% tax on adjusted gaming revenue. These bills put Indiana ahead of many other states. Some of them show signs of legalizing online casinos without upcoming legislation.

Illinois shows no signs of legalizing online casinos in 2022. According to Illinois State Senator Dave Syverson, the state is focusing more on brick and mortar venues. They want to focus on those before venturing into online sites. The state expects to undertake a lot of construction of physical casinos. While iGaming might not receive a go-ahead in 2022, next year is more promising.

Maryland shows great potential, especially to bring iCasinos in the next twelve months. Maryland’s constitution stipulates that a statewide referendum is the only way to approve any expansion of commercial gambling. The same process occurred when the state approved casinos.

2022 is The Turnaround Year for Many American States

The states that have opened up their doors to iGaming will influence the hesitant ones to a great extent. Seeing these regulations working effectively will lead to reduced restrictions for iGaming.

Unlike previous years where there was no glimpse of hope for online casino gaming, more states are now sitting at tables to discuss legislation. The process will be faster as more US states add new regulations to support the industry.

To date, issues like the processing of payments and geolocation difficulties hamper the progress of iGaming. Besides, states like Nevada and Delaware face challenges such as low population and market liquidity.

As more states join the regulated iGaming market and enter agreements that benefit all stakeholders, liquidity issues will soon become a thing of the past.

States to Watch Out For in 2022 and Beyond

Regulations and legislation of iGaming in states like Nevada, New Jersey, and Delaware have drawn the attention of many other states in the United States.

States of interest include California, Hawaii, Iowa, and Massachusetts. These states are considering bringing iGaming within their boundaries. The status of the bills tabled in these places might change, but there is a lot to look forward to soon.

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