The Supreme Court’s 2018 decision to strike down the federal sports betting ban has led to rapid changes in the gambling landscape across the United States. Most certainly, there has been no free-for-all in legalizing gambling products, and it seems evident that some states will staunchly forbid gambling for the foreseeable future, yet the changes in many states have been significant.
For players and bettors, it can be a confusing picture to understand which U.S. states have legal gambling.
The reason for the complication is that there is little uniformity. Some states have legal land-based casinos, but do not allow online casino gaming; Some have online sports betting and online casino, whereas some allow the former without the latter. Even Nevada, the famous standard bearer for gambling, does not permit online gambling except online poker, but many of its huge casino brands operate in other states.
Casino licenses are given to a select few
Even states that do allow online gambling tend to be selective when it comes to operators. Casino licenses are both expensive and not easily awarded. Some states will only grant a few licenses, and they may be tied to partnerships with land-based casino resorts. Still, major operators will have a network of partnerships and use their experience to navigate the legal landscape, which differs in each state and territory.
Right now, eight states – Pennsylvania, Michigan, New Jersey, West Virginia, Connecticut, Delaware, Rhode Island and Maine – have legal online casino operations. Some may be added to the list in the coming years, but many bills going through state legislative bodies have tepid support. The picture is also complicated due to the rise of sweepstakes casinos, which aim to circumvent the real-money gambling tag by using systems of virtual currencies. Some states have banned sweepstakes sites, but they remain in legal limbo in others.
Sports betting is more widespread
Sports betting is more widespread but still somewhat complex in its mapping. At the time of writing, 30 states have legal – or partially legal – online sports betting, whereas 39 states have in-person sports betting. States will also have rules over the types of bets that can be placed. For example, there have been moves in many states to restrict betting on local college sports teams, particularly player prop bets.
The elephant in the room is arguably the offshore platforms, which are judged to have cost the American economy billions in lost revenues. You’ll see these platforms advertising online in both states that do and do not permit online gambling. You’ll also see them advertised by proxy on platforms like YouTube and Twitch. Some are cryptocurrency-focused casinos and sportsbooks; others aren’t, yet they operate outside of the law in the US, which can be a huge problem for players and bettors.
All of these elements combine to create a complex picture. However, the template is also one of consolidation. It’s ‘only’ been eight years since the Supreme Court gave states the right to decide their own laws with respect to gambling, and we have seen plenty of winners and losers among the operators. The sector is still young, but it is starting to find its feet.
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