US Gambling Laws: States Where Online Gambling is Legal

Online Gambling Laws by State

Aside from a few rules on interstate betting and financial transactions, there aren’t any specific federal U.S. online gambling laws directly regulating the space. This means that states are responsible for setting their own rules. The same goes for enforcing them and revising legal frameworks as needed. 

The problem is, many of the existing regulations were written back when states first put their constitutions together. That’s long before internet casinos and sportsbooks were even a thought. Over the last few years, there’s been a major push to modernize. Some states are still playing catch-up, while others have already adapted to newer trends like esports and alternative payment methods. 

Here are some quick facts on the legality of online gambling in the U.S.

• Nevada, New Jersey, Pennsylvania, Delaware, Michigan, Connecticut, West Virginia, and Rhode Island have some of the most open US gambling laws. They’ve fully legalized and regulated both online and in-person casinos, sportsbooks, and poker rooms.
• Every state except for Utah and Hawaii has some form of legalized gambling.
• Nevada has offered legal sports betting since 1949. It predates the federal ban imposed by the Professional and Amateur Sports Protection Act of 1992.
• 45 states, along with Washington, D.C., Puerto Rico, and the US Virgin Islands have legal lottery programs.  

Where state laws haven’t caught up, offshore-licensed casinos step in. These operate from international jurisdictions and aren’t bound by U.S. regulations, which means players across the country can access them without restriction.

Here’s a table listing the states where gambling is legal, along with those where offshore sites are the only option.

USA Online Gambling Laws

Despite having significant control over gambling regulation, US states must still adhere to federal laws and respect tribal sovereignty.

Federal Gambling Laws

Federal gambling laws in the U.S. focus on keeping betting within legal limits by shutting down unauthorized operations. The main objective is to block money from reaching criminal networks and making sure wagers don’t move across state lines in ways that violate existing regulations.

Tribal Gambling Laws

Tribal gambling laws let federally recognized tribes run casinos on their land. The workaround is that they’re treated as sovereign nations. The Indian Gaming Regulatory Act (IGRA) of 1988 breaks gaming into three categories:

• Traditional tribal games (Class I)
• Bingo and card games (Class II)
• Full-scale casino gaming (Class III). 

How each one is regulated depends on the classification. For the bigger operations, tribes usually have to negotiate a compact with the state and get federal approval.

Read more about how Indian casinos compare to commercial casinos in the U.S.

States That Allow Online Sports Betting and Their Regulatory Authority

The table below lists U.S. states where online sports betting is legal, whether it’s fully open like in New Jersey or restricted to mobile apps on tribal land, as seen in New Mexico.

*Has been delayed to Fall 2025

Do I Have to Pay Taxes on Gambling in the US?

Yes, winnings are taxed in the U.S. whether you’re playing at a casino or on a state-licensed platform. The IRS considers all gambling profits as taxable income — slots, table games, sports betting, lotteries, poker tournaments, and everything in between.

Commercial casinos and sportsbooks often withhold taxes on big wins and will give you a W-2G form if your payout crosses a certain threshold. The standard rate is 24%, but the final amount depends on your total income and tax bracket.

Offshore sites follow a different set of rules since they aren’t bound by U.S. laws and don’t report winnings to any authority. It’s on you to handle any tax obligations, but keep in mind that payments processed through a U.S. bank could still be subject to review or audit.

For peace of mind, it’s best to get advice from a tax professional.

US-Friendly Internet Casino Sites

International gambling sites tend to be far less restrictive than those locally licensed. You’ll have options no matter where you are in the U.S., with bigger game libraries and higher-value promotions. That’s on top of greater anonymity with crypto and more flexibility in how you play.

Here are our top-ranked gambling sites accepting US players:

How We Rank Sites

There are many factors we consider when ranking and comparing casino sites, including security, reliability, and other key performance metrics. 

To back our findings and make them more reliable, we use the Jackpot Meter — our own in-house rating system. It automatically gathers reviews from industry experts and real players, then scores each site based on the ratio of positive to negative feedback.

US online casinos with strong ratings earn the Jackpot Certified badge. Those with more negative than positive reviews are marked as a Bust. 

History of USA Online Legal Landscape

Gambling in the U.S. goes way back to colonial times. The first brick-and-mortar casinos emerged in the 1930s with Nevada’s legalization. Sports betting, though, remained in a grey area until 2018. At that time, the Supreme Court struck down PASPA and gave each state the freedom to regulate it on their own.

Below, we’ve laid out a timeline of key moments in U.S. gambling history to show how regulations and today’s options took shape.

The Future of Online Gambling in the US

Online casinos and sports betting are constantly evolving. Thousands of valid operators constantly compete to attract players with better features and promotions. Game developers keep pushing new ideas, lately focusing on live dealer games with AR and sports tie-ins. Blockchain-inspired titles have also gained a lot of traction. The same goes for other arcade-style variants that build on classic formats.

Sports betting is all about in-play wagering right now. New bookmakers are constantly stepping up their game to bring players closer to the action. Augmented Reality (AR) is also likely to play a big role moving forward, along with predictive analytics bringing even more data-driven insights into play.

The reality is, you’re far less likely to see these latest developments on locally licensed platforms. Regulations tend to limit how quickly they can adapt. On the other hand, offshore-regulated sites have more room to experiment and implement innovations.

And this whole picture looks to be tightening even more. Lawmakers like Senator Richard Blumenthal are pushing for federal oversight. He’s arguing that state-level regulations aren’t enough to keep things in check.

At the same time, several states are in the middle of figuring out regulations for online casino gaming or sports betting. Missouri is set to become the 31st state with locally regulated online sports betting this year. Several others also expected to make moves, including:

• Maryland
• Virginia
• Massachusetts
• Georgia
• South Carolina
• Mississippi

For the most flexible access without any restrictions, SuperSlots is the best casino site for US players. It’s available across the country, and you can claim more than three times your initial deposit as a welcome bonus as soon as you sign up.

Responsible Gambling

Online gambling can offer great entertainment when approached with the right mindset. Always know what you’re comfortable spending, set a budget that wouldn’t impact your life if you lost it, and keep an eye on your time so you stay in control.

For more information, take a look at our guide on responsible gambling. There are also several U.S.-based organizations that provide professional support, such as:

• National Council on Problem Gambling (NCPG)  
• American Gaming Association (AGA) 
• Responsible Online Gaming Association (ROGA)

More US Gambling Resources

1. Federal Trade Commission – Unlawful Internet Gambling Enforcement Act
2. States to Legalize Betting
3. A Guide to Lotteries in the US
4. What States Have Casinos?
5. Amaya Gaming – Amaya Completes Acquisition of Poker Stars and Full Tilt
6. National Indian Gaming Commission – Indian Gaming Regulatory Act
7. North American Foundation for Gambling Addiction Help

Charlon

Muscat

Content Specialist

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All the way from the renowned iGaming hub of Malta, Charlon has been contributing to the gambling industry since 2019. He began his career at Paddy Power™, but the onset of the pandemic led him to swap his nine-to-five for a life of full-time travel. Throughout his journey, Charlon developed a successful freelance career, leveraging his prior industry knowledge and focusing on analyzing online casinos, sportsbooks, slots, payment methods, and current trends and strategies through the lens of an actual player.

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