Definition of iGaming
Before we start looking at the current state of iGaming in the US, it is worth stopping and clarifying precisely what iGaming is. It is a phrase that is used a good deal, but what exactly does it mean? iGaming relates to any activity that predicts the outcome of a future event or game. iGaming includes betting on all sports, such as football, soccer, hockey, basketball, and horseracing. It also covers online betting for both entertainment and political events. In addition, there is the online casino market which covers traditional casino games in both digital and live dealer formats. Other online casino games include all types of slots. In addition, there is online poker. Finally, betting on fantasy sports and eSports also falls under the iGaming definition.
Global iGaming
The global online gambling market was worth an estimated $61.5 billion a year in 2021. This is expected to rise sharply as new markets are legalized and regulated. For example, more US states are opening to iGaming, and Canada legalized single-event sports betting online last year. It is estimated that by 2018 the market will be worth $111.4 billion, which is an increase of 86%.
The USA today
Given that not so long ago, the only place Americans might legally gamble was Las Vegas, this is nothing short of a revolution in the country’s relationship with games of luck and chance. Unfortunately, there is still quite a bit of confusion regarding what is and is not legal in terms of iGaming across the USA. This is because each state determines what they allow its residents to do. It did not used to be the case.
Legalization of sports betting
The most significant change to the gambling landscape in the USA happened in May 2018. The Supreme Court ruled once morest the nationwide ban on sports betting – they said it was unconstitutional. As a result, the 1992 Professional and Amateur Sports Protection Act (PASPA) was reversed. PASPA prohibited sports betting everywhere in the US, save for a few states like Nevada.
It had taken seven years of legal battles for this change to come regarding. The Governor of New Jersey, Chris Christie, filed a lawsuit in 2011. He said that PASPA violated the US states’ right to govern themselves. At the same time, the state held a non-binding referendum regarding sports betting. The residents of New Jersey overwhelmingly were in favor of allowing sports betting.
Having pushed for the change in the law, New Jersey was the first state to take bets for races at Monmouth Park. The 1961 Wire Act still meant wagering across borderlines was illegal, but online sports betting within the state had the green light.
iGaming on Sports
Nineteen states have legalized sports betting, but not all permit online and mobile sports betting. This is a list of states that not only permit betting but provide a realistic framework and licensing arrangements:
- Colorado
- Connecticut
- Delaware
- Illinois
- Iowa
- Indiana
- Nevada
- New Hampshire
- New Jersey
- New York
- Pennsylvania
- Oregon
- Rhode Island
- West Virginia
- Wyoming
However, Californians recently rejected allowing sports betting in the state despite massive lobbying by the industry.
Online Casinos
The online casino market is slightly less complicated than sports betting. It is somewhat ironic that the 2018 law change is seen as a watershed for iGaming when online casinos had been legal for much longer. However, fewer states allow their residents to play at online casinos. Only New Jersey, Pennsylvania, Delaware, West Virginia, and Michigan have casinos where you can play for real money. These states offer a wide range of games at the best online real money casinos. The opportunities include thousands of slots, classic casino table games, live dealer rooms, and poker.
Only some forms of games allowed
Nevada allows online poker, but no other casino games are permitted online. Louisiana and New York have social and sweepstakes casinos.
Why did online casinos come regarding?
The legalization of online games was started to fix a hole in state revenues. States had previously used lotteries to raise money, but the 1961 Wire Act prevented them from selling tickets online. The Act says that wagering cannot take place over telecoms that cross national or state borders. However, in December 2011, it was established that the Wire Act only applied to sports betting, and lottery tickets might be sold online if the purchaser was within the state.
Which state legalized online betting first?
Delaware was the first State to legalize online gambling in 2012. However, they still only have a small number of online casinos because they have such a small population. They needed to allow players from other states to compete in online poker to make the market viable. This required extra legislation, and the Delaware Gaming Competitiveness Act contains a clause allowing people from other states to compete. They had to wait for an interstate compact to be formed with New Jersey and Delaware, who launched online poker together in 2013.
Physically present in the state
As you can see, the market remains fragmented and somewhat confusing. It does depend on where in the US you are. Remember, you do not have to live in a state with a legalized market; you simply need to be physically present there.
