NEWSUS Gambling Laws: A Complicated Path Becoming Simpler
July 17 2024, Published 1:13 a.m. ET
The US has long had a complicated relationship with gambling. There have been times when casino gaming has been completely outlawed or the government has permitted it in certain states. Authorities have frowned upon several other types of gambling and only allowed certain forms, such as lotteries. Some states have not tolerated gambling in any shape or form (and still don’t).
In the later decades of the 20th century, however, the US attitude towards gambling began to soften. In some states, casinos began to emerge. As time has gone by, the US Government has left regulation of some forms of gambling in the hands of state governments. This more tolerant approach has enabled new casino platforms to enter the US market and gaming punters to revel in the new-found freedom changes in the laws allow them. Below is a look at the US gambling market, at states that permit online gambling and at the future of the online gambling market.
Life since legalization
The US Supreme Court’s decision in May 2018 to grant the right to determine whether they wished to legalize sports betting was a landmark moment. New Jersey, which has long been pro-gambling, wasted no time in establishing laws so that punters could wager on sports without fear of repercussions from the law.
Today, 39 states permit punters to wager on sports events, and although laws vary around whether this can be done online, on mobile and offline, many allow players to wager online. Some states forbid wagers on college sports events.
It seems, however, that many states are dragging their heels on online casino gaming. Casino industry executives have described how only seven states permit online casino gaming. These are Connecticut, Delaware, New Jersey, Michigan, Pennsylvania, Rhode Island and West Virginia. Nevada, despite its pro-gaming stance, still only permits online poker.
Revenue from states that favor online gambling
S&P, reporting on figures from the American Gaming Association, inform readers on its website that online gaming generated $16.43 billion in revenue in 2023, which was 24.7% of total gaming revenue for that calendar year. The total revenue figure of $66.52 billion included land-based casino gaming, sports betting and igaming.
Sports betting has had a clear impact on revenues, especially as new states enter to join in the spoils igaming can generate in tax dollars. More than $4 billion has poured into state coffers from the more than $280 billion wagered on sports, as a result of legalizing sports betting since 2018.
Of the states that don’t permit sports betting yet – Missouri, Minnesota, California, Utah, Alabama, Alaska, Idaho, Virginia, Texas, South Carolina, Hawaii, Georgia and Oklahoma — Missouri could be the one to legalize it next, and online operators, casinos, professional sports teams and video game terminal interests have joined forces to lobby for legalization, including of online wagering. Data shows more than 13.5 million location checks from 280,000 devices in Missouri trying to access mobile sports betting sites.
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The future of online gambling in the US
The six states that have permitted online casino gaming have raised plenty of tax dollars for themselves, but some are still questioning whether online casino gaming is the way forward. Some believe it is, as players who don’t want to play at a traditional casino can enjoy casino games in the privacy of their own homes, not to mention the safety of having their winnings transferred to their account instead of the guests leaving the establishment with a whole load of cash. Others have also commented that inexperienced players won’t feel the pressure of having to place large wagers as they might do at the tables of a traditional establishment.
One thing highly possible is that online gambling is likely to increase in popularity, and there are fears online services could harm traditional casinos and sports betting shops. Some brick-and-mortar sports betting providers have seen the number of punters drop ever since the arrival of online sports betting. According to data on the website of consumer and market data company Statista, by 2029 the number of users in the online sports betting market will amount to 54.7 million.
In the online gambling industry, there’s agreement about the need of the industry to educate lawmakers better about internet casino games. Operators may take on a role as educators so that lawmakers can see the difference between the legitimate operators and the illegal, offshore casinos that some citizens are using. Respectable online operators abide by strict regulations and take lots of steps to protect player from malicious operators and so that players can play safely.
For a long time, the US has had a difficult relationship with gambling, but states are embracing gambling more, especially online sports betting and, in some states, online casino gaming. The potential tax dollars are too good to resist. Some states are still reluctant to relax laws, but that could change, especially if the industry can educate lawmakers and assure them of how much they do to protect players.
