Although it may come as a shock that some states still don’t legalize online gambling, the reasons are quite compelling. Chiefly among these is due to changes in the federal Wire Act which was amended in 2011 so as to only cover sports betting – leaving most states alone to regulate their own markets and offer online gambling options themselves.
Nevada was the first state to legalize online gambling in 2013, followed by Delaware and New Jersey in 2014. Pennsylvania joined in 2017 by legalizing casino games, poker sites, and sports betting in its jurisdiction; Michigan, West Virginia, and Mississippi followed suit later on with legalized iGaming legislation in 2021-2022.
Kentucky, one of the more conservative states, has taken to online sports betting with open arms. Home to Churchill Downs and various racetracks, sports betting in Kentucky is naturally very popular. Kentucky had initially proposed creating online casinos; however, they have decided instead to wait and see how their sports betting market develops before moving forward with this plan.
Oregon presents an intriguing case, having prohibited all forms of online gambling until 2023 when state-licensed racinos began offering sports betting via iGaming platforms such as Betfair. Now in 2023 they seem to have made an unusual decision: permitting state-licensed racinos to offer sports betting via state licensees despite previous prohibition. It will be interesting to watch how Oregon’s online sports betting market grows further over time and whether further expansion occurs.
Europe has been at the forefront of online gambling regulation, with countries such as Malta, Gibraltar and Isle of Man offering licensed iGaming services that help ensure fair play and consumer protection. By contrast, many Asian nations lack such regulations, opting instead to implement bans.
One of the primary challenges associated with iGaming is regulation. The US has proven difficult in this regard, as each state imposes different laws while some implement federal legislation like UIGEA (2006).
Federal laws can create an intricate web of regulations for online gamblers to navigate, making life harder for online gaming operations. For instance, the Unlawful Internet Gambling Enforcement Act (UIGEA) doesn’t explicitly ban gambling; rather it prohibits any financial transaction involving an ISP offering these services – something which has led some websites set up outside the US such as Seals with Clubs to run into trouble with authorities due to this provision of law; though most offshore gaming operations still operate legally and adhere to their respective licensing bodies’ regulations for regulation purposes; nonetheless there may be some uncertainty over how long UIGEA will remain in force for.