Sports Betting Laws In The United States
The gambling industry in the United States is surrounded by legislation at every corner. Whether it's casinos, poker, or sports betting, there are laws regulating or prohibiting the practice. In the case of sports betting in the U.S., there are several laws that prohibit it on land, as well as in the world of online sportsbooks. The legislation aims to prevent operating sportsbooks without a license, and from sports betting sites from transacting all together. It's certainly had an impact for American sports bettors, but the laws do keep the door open for legalized wagering on sports to be done in both areas, it's just limited.
The main laws concerning sports betting in the U.S. are discussed below, distinguishing between land-based, and online. You will find out what each law says, and what they prohibit. But perhaps just as important, you will find out what the laws still allow for, which as a prospective sports bettor living in the U.S., you will certainly want to pay attention to. Your legal sports betting options lie in the language of the legislation.
The Professional And Amateur Sports Protection Act passed through Capitol Hill in 1992, as means to end wagering on sports in the U.S. in all but a handful of licensed states. PASPA eliminated licensed sportsbooks in every state but Nevada, Montana, Delaware, and Oregon. These states were not immune based on a drawing out a hat by the federal law though; there were demands that had to be met. States interested in keeping licensed sports betting and lotteries had to have maintained a 10-year history or more with licensed gaming. States also had just one year to announce this intention and complete the required materials.
Only those four states saw the process through. Many recognize Nevada on the list, for the famous Las Vegas sportsbooks. The other states are less known, but all have to potential to integrate types of legal land sports betting.
With the boom of the Internet, legislators in the U.S. felt it necessary to strike at online gambling, because it was an industry many were against in Washington. Thus was the passing of the UIGEA. This bill states that gambling businesses are not allowed accept any financial transaction made with the intention of a bet placed. With gambling sites banned from processing wagers for real money, the sites could not function. Gambling was not outlawed, only the means for which how it could be done were removed. The effect was the abolishment of all online betting sites in the United States.
For American bettors to gamble online, the option of an offshore sportsbook still exists. Offshore sportsbooks were well aware of the legislation passing in the United States, and actively pursued American players by accepting them to sign up with their sites. This is legal for U.S. sports bettors to do, because the sites are outside of U.S. law jurisdiction.
The Wire Act is another federal law where gambling businesses are the centralized focus. Taking away resources for how a gambling business can accept payments is the goal here. And actually as of 2011, the Wire Act covers just sports betting. The transmission of funds back and forth by a betting business for a wager is forbidden under this law.
It was a ruling in September of 2011 by the U.S. Fifth Circuit Court of Appeals does not apply to other types of gambling outside of betting on sports. Online gambling seems to fall into a gray area however it was said to specifically not to include poker so it could be assumed that online casino gaming could be allowed. It should also be noted the specific mention of businesses only, and not bettors who intend to make the wager. Thus, betting at offshore sportsbooks is still legal for players in the United States - liability falls with the banks + betting sites, not the user.
Individual states are able to have other legislation against betting on sports, land-based as well as for online sportsbooks that accept USA residents. If you are interested in local laws concerning sports betting, your best resource will be a local attorney, or perhaps even the state website with legislation covering the topic.
