United States — gambling regulation

Written by Alex SmithAlex Smith |
Fact-checked by Sophia NovakivskaSophia Novakivska
 | 
Regulator: NJ DGEPlayers: grey areaState-by-state licensing. Federal law (UIGEA) targets payment processing for gambling that is unlawful under state or federal law.
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The United States has no national gambling regulator. Online gambling is governed by state law, and each state licenses and supervises its own market. Federal law (the Unlawful Internet Gambling Enforcement Act 2006) bars businesses from knowingly accepting payments for unlawful internet gambling, but excludes bets that are lawful and made wholly within a single state. The New Jersey Division of Gaming Enforcement is used here as an example of a state regulator, and it publishes lists of authorised internet gaming sites and permit holders.

At a glance

Legal for players
Players: grey area No national regulator or national licence: gambling is regulated state by state. NJ DGE is given as an example of a state regulator, not a national body. Online casino or sports betting is legal only in states that license it.
Licence types
State licences, e.g. NJ internet gaming permits and sports wagering
Who is punished
Operators and payment processors; the federal UIGEA provision targets those in the business of betting, not players
Penalties
Federal: fines and up to 5 years' prison (UIGEA). State: DGE orders, cease-and-desist letters and penalties
Winnings tax
Gambling winnings are fully taxable federally; losses deductible only up to winnings, if itemised

Law-change timeline

  1. UIGEA enacted (31 U.S.C. §§ 5361–5367): bars accepting payments for unlawful internet gambling; criminal penalty up to 5 years
  2. 27 state attorneys general ask DOJ to rescind its 2018 opinion applying the Wire Act to non-sports gambling

Enforcement (3)

DateWhoPenaltyWhyNotice
KalshiCease-and-desist order (NJ DGE)Not stated on the listing page; order text could not be readnotice
RobinhoodCease-and-desist order (NJ DGE)Not stated on the listing page; order text could not be readnotice
PlayUp Interactive NJApproval for transactional waivers revokedNot stated on the listing pagenotice

Regulator

New Jersey Division of Gaming Enforcement NJ DGE

njoag.gov

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Sources

  1. New Jersey Division of Gaming Enforcement — 27 state attorneys general ask DOJ to rescind its 2018 opinion applying the Wire Act to non-sports gamblin · njoag.gov · checked
  2. New Jersey Division of Gaming Enforcement — UIGEA enacted (31 U.S.C. §§ 5361–5367): bars accepting payments for unlawful internet gambling; criminal p · law.cornell.edu · checked
  3. New Jersey Division of Gaming Enforcement — Kalshi · njoag.gov · checked