Online Gambling Laws and What They Mean to YouAs one of the world's largest and most popular entertainment and news sites focusing on "events" betting odds, whether that be related to sports, political elections, celebrity breakups, awards shows and so on, Gambling911.com realizes the need for clarity in laws imposed by local, state, country jurisdictions. As such, through extensive research, we offer our readers an easy-to-follow breakdown of current laws and restrictions (updated January 30, 2007) pertaining to online gambling.
Ambiguity is not just present in US law - which has been a main focus of late as it relates to online gambling - there are jurisdictions throughout the world that allow betting on some forms of activity and not others. Some online gambling jurisdictions do not allow betting with online casinos and sportsbooks located in the country itself by their own citizens while taking bets from outside the nation are okay and placing bets outside the nation is not clearly illegal. France reportedly has no laws prohibiting its citizens from betting online with gambling sites located outside the country but has been aggressively going after those individuals who run said sites (even outside the country - similar to the stance of the US).
Recently, a law passed on the US Federal level clarifies that the acceptance of bets on US soil remains illegal but has now been adapted to the internet. The law further seeks to have banking institutions monitor such transactions that may be made from US citizens in order to prevent operators from collecting said betting funds. However, the banks and others have been lobbying to remove such language from this law that would hold financial institutions liable. Legislators have admitted that the wording in this law needs to be studied over the next several months. Poker may still be exempt from this measure, though that is yet to be determined as of January 30, 2007. For actual gamblers/bettors, the law is not applicable to them. Amazingly, under the new US law, gamblers themselves will not be held liable. The law only serves to focus on bet-takers and banks. This is why with US law, we will focus on individual states appearing below.
This report focuses exclusively on the placement of bets in various jurisdictions with the knowledge that many of our readers may be interested in gambling online (as opposed to taking bets from others). Clearly, it is illegal for anyone in the US to operate an online casino or sportsbook within US borders. Likewise, it is illegal for anyone to physically collect money from another individual that relates to the proceeds derived from online gambling. Furthermore, our focus is on individual states within the US since we are unaware of any internet-specific laws outside the US pertaining to the actual bettor.
Illinois - While a misdemeanor, the law currently on the books does apply to internet gambling (express internet prohibition). This is the only state that also strictly prohibits advertising within Illinois for online gambling venues (i.e. billboards, newspapers, etc.. that target residents of that state). Gambling911.com has had a strict policy in place for the past few years never to solicit Illinois state residents directly.
Indiana - There is express internet prohibition presented in Indiana's state law and - while never enforced against gamblers - the penalty is considered a felony only if the betting activity is via a syndicate or group, otherwise, placing simple wagers over the internet would be considered a misdemeanor. This state has long been a foe of online gambling since the industry really got underway in the late 90's.
Louisiana - State law prohibits placing of bets via the internet. Penalty is a felony only if betting through a syndicate or group, otherwise it is considered a misdemeanor. Recent warrants against certain principals in online gambling companies by the state of Louisiana show they are seriously enforcing this law and could potentially come after those who gamble online as well.
Montana - Oddly enough, Montana has made internet gambling expressly prohibited, punishable by a misdemeanor.
Nevada - Does not allow internet gambling across state lines.
Oregon - Expressly prohibits internet gambling by its residents.
South Dakota - Only applies to those in the actual gambling business so there is no explicit law prohibiting residents living in that state from gambling online who are not employed or otherwise acting as part of a gambling-related business.
Washington (State) - Last June, the state became the first to make betting over the internet a Class C felony regardless of whether you are betting as part of a syndicate or alone in your own living room. That law is currently about to be repealed For now, Gambling911.com actively warns against betting over the internet if you happen to reside in Washington State.
Missouri, New York, Florida and New Jersey have in the past gone after online gambling operators or those facilitating money transactions via online gambling operators (New York's case against PayPal and Florida's attempts to stop Western Union transactions during the late 90's). None of the states have adapted laws that would penalize actual gamblers from betting online however.
Some good news is that both Michigan and Minnesota were once considered major foes of the online gambling industry.
In 1999 Michigan adopted SB 562 which made it specifically unlawful to use the Internet to violate certain provisions of Michigan's anti-gambling laws (Mich. Complied Statutes 750.301 through 750.306 and 750.311.) In 2000 Michigan adopted Public Act 185 which repealed the references to those anti-gambling sections. Thus, Michigan is not a state that has in effect a specific prohibition against using the Internet to make, offer or accept bets over the Internet.
Minnesota was once at the forefront of internet gambling investigations. With the election of Jesse Ventura as Governor (Mr. Ventura would later go on to endorse an online sportsbook), that state has since relaxed its efforts regarding the industry.
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Christopher Costigan, Gambling911.com
Originally published January 30, 2007 2:15 pm ET
