Gambling Laws in the US

Written by: Katya Vasileva Date: 03.06.2025

The United States’ legal gambling situation is highly decentralized. Unlike countries with national regulation, gambling laws in the US are determined largely at the state level, resulting in a mix of legal and illegal gambling activities across the country. However, federal laws continue to play a role in certain areas, such as online gambling and financial compliance.

Key points to know about the regulations:

• Each US state decides what forms of gambling are legal
• Online gambling laws vary from state to state
• Federal laws apply to cross-border and online gambling
• The legal gambling age is usually 18 or 21, depending on the state

Key objectives of US gambling laws include:

• Keeping gambling safe, fair, and free from criminal influence
• Protecting children and vulnerable people
• Setting clear rules for honest and transparent gambling
• Helping states earn revenue through licensed gambling activities

On this page:

• Legal vs. Illegal Gambling
• Gambling Authority: UKGC
• Legal Gambling Age
• Gambling Laws Timeline
• Licensing Requirements
• Player Protection
• Taxation
• Advertising Regulations
• Affiliate Compliance
• Offshore and Unlicensed Casinos
• Non-Compliance Penalties

Legal vs. Illegal Forms of Gambling in the US

The legality of gambling in the US depends on the type of activity and the state. While Nevada and New Jersey are known for robust gambling industries, others like Utah and Hawaii prohibit nearly all forms.

Casino Gambling Laws

Casino gambling laws in the United States are a combination of state legislation and tribal agreements. Some states allow for commercial casinos, while others restrict gambling to tribal compacts or prohibit it entirely.

Land-based casino regulation:

• Overseen by state gaming commissions with strict licensing and compliance requirements
• Includes regulation of slot machines, table games, surveillance, and staff licensing
• Tribal casinos operate under the Indian Gaming Regulatory Act (IGRA) and require state-tribal compacts

Online casino regulation:

• Online operators must partner with land-based license holders in most jurisdictions
• Subject to state-level regulation covering fairness, security, and responsible gambling tools
• Includes mandatory player verification, fund segregation, and software audits

Sports Betting Gambling Laws

The legalization of sports betting in the US accelerated after the Supreme Court overturned PASPA in 2018 – a law that blocked most states from regulating sports betting. Since then, dozens of states have launched online and in-person legal betting markets.

Land-based sports betting regulation:

• Operated through licensed casinos, racetracks, or sportsbooks
• Often limited to specific locations or partnered venues
• Requires regulatory oversight and compliance with licensing and anti-fraud standards

Online sports betting regulation:

• Operators must be licensed by the state and usually partnered with a land-based entity
• Requires player geolocation, identity verification, and responsible gambling tools
• States may limit bet types, impose tax rates, and require data reporting to regulators

Bingo, Lotteries and Other Regulations

Bingo, lotteries, and similar low-stakes gambling activities are widely legal in the United States, though they are still subject to individual state laws and oversight. These forms of gambling are often used for charitable fundraising or state revenue and typically face fewer restrictions than commercial casinos or online betting.

Bingo and charitable gaming:

• Legal in most states when conducted by licensed non-profit or religious organizations
• States may impose limits on prize amounts or number of events per year
• Oversight usually falls under state charity or gaming commissions

Lotteries:

• Operated by state governments in most jurisdictions
• Include scratch cards, draw games, and multi-state lotteries like Powerball and Mega Millions
• Proceeds often fund education, infrastructure, or social programs

Other formats:

• Raffles and sweepstakes may be legal under charitable gaming laws
• Social gaming (e.g., home poker games) is permitted in some states if no profit is made
• Skill-based contests like fantasy sports are legal in many states with regulation depending on the jurisdiction

Gambling Authorities

There is no single federal gambling regulator in the US. Instead, regulation is divided across multiple levels of government. State agencies handle most licensing and enforcement efforts within their jurisdictions. Tribal casinos operate under federally approved compacts and their own regulatory bodies. Meanwhile, federal agencies oversee national laws that affect online transactions, interstate betting, and anti-money laundering compliance.

Regulation is shared across different levels of government :

• State Gaming Commissions: Oversee local gambling activities (e.g., Nevada Gaming Control Board)
• Tribal Regulatory Bodies: Govern operations on Native American reservations under the Indian Gaming Regulatory Act (IGRA)
• Federal Agencies: Oversee nationwide concerns such as online transactions, criminal enforcement, and financial compliance.

Legal Gambling Age

Gambling age requirements in the United States are governed by state law and vary based on the type of gambling involved. Generally, lotteries and pari-mutuel wagering are open to players aged 18 and up, while casino gambling and sports betting often require a minimum age of 21. States enforce age requirements via ID verification and licensing audits.

Legal Timeline of Major Gambling Laws in the US

Gambling laws in the US have developed gradually, reflecting the country’s evolving views on gaming, entertainment, and public safety. Legislative changes are often driven by new technologies, market expansion, and concerns around gambling-related harm. The timeline below highlights the most important milestones that continue to influence how gambling is regulated today.

• 1961: Federal Wire Act enacted, restricting interstate betting
• 1988: Indian Gaming Regulatory Act (IGRA) creates framework for tribal casinos¹
• 2006: Unlawful Internet Gambling Enforcement Act (UIGEA) targets payment processing for illegal online gambling²
• 2018: Supreme Court overturns PASPA, enabling states to legalize sports betting³
• 2020–2025: Rapid expansion of legal online sports betting and casino markets

New Gambling Laws and Regulatory Reforms (2020–2025)

In recent years, the US has seen a wave of gambling reforms aimed at modernizing outdated laws and confirming player safety in the digital age. These changes have largely focused on expanding online gambling, improving transparency, and tightening controls to prevent harm.

Key changes include :

• Legalization of mobile sports betting in over 30 states
• Introduction of affordability checks and responsible gambling tools in online platforms
• Launch of state-specific gambling self-exclusion databases and expanded treatment resources
• Greater enforcement of advertising standards and affiliate marketing compliance
• Tax reforms and structured reporting obligations for online gambling operators

Upcoming Regulations

While many states have already legalized various forms of gambling, several are expected to introduce or refine regulations in the coming years. Ongoing legislative efforts are focused on consumer protection, digital oversight, and cross-jurisdictional enforcement.

Potential developments include:

• Broader implementation of real-time affordability checks
• New restrictions on loot boxes and gambling-like features in video games
• Stronger measures to block unlicensed offshore platforms
• Tighter advertising rules, especially around influencer marketing and youth exposure
• Improved data-sharing between state regulators and federal agencies

Licensing Requirements

Each state manages its own licensing process for gambling operations. Licensing may apply to operators, software providers, key personnel, and in some cases, affiliates involved in marketing gambling services to residents of that state.

Types of gambling licenses typically include:

• Operator License – Required for entities offering gambling services, both online and land-based
• Supplier or Vendor License – For businesses providing gaming software, hardware, or support services
• Key Employee or Management License– For individuals in leadership roles, such as compliance officers, finance leads, or C-level executives
• Tribal Gaming License – Issued by tribal regulators under tribal-state compacts governed by IGRA

Common licensing requirements:

• Criminal background and financial integrity checks
• Independent audits and software testing to confirm fairness
• Demonstration of financial stability and protection of player funds
• Implementation of responsible gambling measures, including age and identity verification

Operators are expected to maintain ongoing compliance with all regulatory obligations. Failure to do so can result in fines, license suspension, or revocation.

Player Protection and Responsible Gambling

Player protection is a central focus of US gambling laws. States require licensed operators to take steps that prevent harm, promote responsible gambling, and support those at risk.

Key player safety measures:

• Proof of age before playing
• Time-out tools and spending limits
• Self-exclusion programs you can join at any time
• Warnings about time spent playing
• Options to temporarily or permanently close your account

Financial checks:

• States may require operators to flag unusual spending
• Identity and income checks for high-risk users
• Some sites ask for documentation if your gambling activity raises concerns

Advertising regulation for player safety:

• No ads allowed that target children or vulnerable groups
• Celebrity ads are restricted in many states
• All ads must include safer gambling messages
• Bonuses must come with clear terms

Help and support services:

• Free helplines like 1-800-GAMBLER⁴
• State-level gambling counseling services
• National Council on Problem Gambling (ncpgambling.org)⁵
• Operator tools for self-help and referrals

Compliance enforcement:

• State audits and surprise compliance checks
• Heavy fines for operators breaking rules
• Operators must report failures or risk losing their license

Taxation and Legal Obligations

Gambling in the United States is subject to different tax rules depending on the party involved and the state in which the gambling activity occurs. While players must report winnings to the IRS, operators are subject to varying state tax rates, federal duties, and strict financial reporting standards.

Gambling Advertising Regulations

Gambling ads in the US must follow strict rules to make sure they are fair, transparent, and not aimed at vulnerable people. Each state has its own standards, but there are several common national guidelines.

Core advertising rules:

• Don’t target underage audiences
• Include responsible gambling resources in all ads
• Avoid misleading claims about odds or wins
• Disclose bonus conditions clearly
• Avoid glamorizing gambling or encouraging risky behavior

Recent changes (2022–2025):

• Bans on “free bets” for players under 25 in some markets
• Restrictions on gambling content in influencer videos
• Stronger enforcement of affiliate marketing compliance
• More pressure for transparent ad disclosures on digital platforms

Affiliate Compliance

Affiliate marketing is a key driver of traffic and customer acquisition in the US gambling industry. However, affiliates are held to high compliance standards, particularly in states with legal online gambling. Operators are ultimately responsible for their affiliates’ actions and must verify all promotional content aligns with state and federal rules.

Key affiliate compliance requirements:

• Must not promote or link to unlicensed or offshore gambling sites
• All claims and promotional language must be truthful and transparent
• Bonus offers and terms must be clearly displayed without misleading implications
• Affiliates must include responsible gambling messages and helpline links
• Use of age-restricted or youth-oriented platforms (e.g., TikTok) is generally prohibited
• Compliance with advertising standards, such as those from the FTC and state regulators, is mandatory

Operator responsibility for affiliates:

• Operators are liable for the actions of their affiliates under most state laws
• Must conduct regular audits of affiliate content and remove non-compliant material
• Required to provide updated compliance guidelines and training to affiliate partners
• Many states encourage or require affiliate registration or disclosure agreements
• Failure to monitor affiliate activity can result in fines, license reviews, or reputational harm

Offshore and Unlicensed Gambling

Using or promoting offshore gambling sites is illegal in most US states with regulated markets. These operators lack licensing, oversight, and player protections required by US law, making them high-risk for consumers and affiliates alike.

Key risks:

• No legal protections if winnings are withheld or disputes arise
• Missing responsible gambling features like deposit limits or self-exclusion
• Higher chance of fraud, unfair games, or data misuse

Enforcement actions:

• States block known illegal domains and monitor affiliate activity
• Financial institutions may restrict transactions with flagged sites
• Operators and affiliates caught promoting unlicensed platforms can face fines or legal penalties

Penalties for Non-Compliance

Violating gambling laws in the US can lead to serious consequences. Both operators and affiliates are held accountable for compliance failures under state and federal regulations.

Summary and Key Points

With gambling laws varying by state and activity, it’s important to understand the key legal requirements. Here’s a quick overview of the most important points covered in this guide:

• US gambling laws are set primarily at the state level
• Online gambling is legal in a growing number of states, but still banned in others
• Licensing, player protection, and compliance vary widely
• Federal laws regulate payment processing and interstate gambling
• Advertising and affiliate activities are increasingly regulated

References

1. Indian Gaming Regulatory Act (1988) – https://www.nigc.gov/general-counsel/indian-gaming-regulatory-act
2. Unlawful Internet Gambling Enforcement Act (2006) – https://www.ftc.gov/legal-library/browse/statutes/unlawful-internet-gambling-enforcement-act
3. PASPA Repeal – Supreme Court Ruling (2018) – https://www.supremecourt.gov/opinions/17pdf/16-476_dbfi.pdf
4. 1-800-GAMBLER Helpline – https://www.1800gambler.net
5. National Council on Problem Gambling – https://www.ncpgambling.org
6. IRS – Gambling Winnings Tax Info – https://www.irs.gov/taxtopics/tc419