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When discussing legal online sports betting, the majority of America's government has a very regressive, prohibition-style attitude towards it, buying into a negative perspective concerning the morality of gambling entertainment. This is what has led to a variety of state gambling laws in the past.
There are no US federal laws that make it a crime for Americans to place bets at offshore sportsbooks that are operating legally within the industry. There are two states that legally prohibit all online gambling, domestic or offshore, leaving residents in Connecticut and Washington without legally sanctioned online betting options, though they have yet to start enforcing those restrictions.
For the most part, state lawmakers are becoming more progressive concerning betting entertainment and recognize the value that this type of revenue stream can bring to a state. Individual states are actively analyzing what the legalization of domestic sports gambling can provide them with in terms of opportunities, tourism, and tax revenue, and many have already taken action one way or the other through new legislation.
Iowa, Nevada, New Jersey, Oregon, Pennsylvania, Rhode Island, and West Virginia currently permit state-regulated online sports gambling, with nearly two dozen additional states having launched land-based sportsbooks. Individual territories began embracing sports betting the moment that PASPA was ruled unconstitutional by the Supreme Court in the infamous NJ case, with multiple states having had their legislation ready and waiting should the ruling go in the Garden State's favor.
Below we'll take a look at the relevant US federal gambling laws, and explain how state gambling laws intersect with federal laws to impact online and brick and mortar sportsbook gambling, as well as what these laws have to say about the legal status of offshore sports betting entertainment.
The Federal Laws on the Books
The sections below will detail and explain how each major federal law affects domestic gambling opportunities in the US.
The Federal Wire Act
Passed back in 1961, the Federal Wire Act was made law in an effort to curtail the illegal gambling activities taking place over the phone by organized crime syndicates. It prohibited the transmission of wagers or betting information from being carried across state lines via telegraph or telephone. The Federal Wire Act targeted these illegal bookie operations as a means to curb the mafia from manipulating games and making a profit through these tactics.
This law was strictly focused on interstate gambling, and only targeted those accepting bets and not the individuals placing the bets. The goal was to crack down on illegal gambling services, not prosecute bettors. Between the DOJ Legal Opinion of 2011 and the repeal of PASPA, today's application of the Wire Act prohibits any gambling business from accepting bets across state lines or from foreign sources.
With the changes still being implemented, we are not sure yet how this will affect those states that had entered into interstate gambling pacts with one another, sharing player pools for their online gambling initiatives. Once that aspect of the legal situation becomes more clear we will update that information here.
The Professional and Amateur Sports Protection Act
Also known as the Bradley Act, or just PASPA, the Professional and Amateur Sports Protection Act was a sweeping federal regulation that passed in 1992, with the supposed intent of protecting the integrity of sports by making sports betting illegal.
At the time the bill was passed, there were sports lotteries in Delaware, Montana, and Oregon, as well as licensed and regulated sports betting in Nevada, so those four states were exempt.
The law effectively prevented the expansion of the sports betting market throughout the United States in what many categorized as a discriminatory law that favored a few states while restricting others.
New Jersey took on the mission of challenging the law and after several years of court battles, was given a favorable outcome by the highest court in the land as SCOTUS ruled PASPA as unconstitutional, nullifying the law.
As of May 14, 2018, each individual state now has the authority to dictate sports betting laws within their borders. They can now choose to authorize or prohibit sports betting at their pleasure. Following PASPA's repeal, we have seen multiple states move forward with legislation that legalizes sports gambling at the state level.
The Unlawful Internet Gambling Enforcement Act
This is the big one that shook the gambling industry to its core. Online gambling really started to explode during the early 2000's, especially in the realm of online poker. In 2006, then-President Bush signed into law the Unlawful Internet Gambling Enforcement Act, known all over as the UIGEA. In a nutshell, the UIGEA placed very stringent regulatory restrictions concerning how gambling-related transactions could be processed.
The most reputable sites started a countdown and allowed Americans to withdraw and closeout their accounts. Many trusted gambling sites left the US market at this time. After the dust settled, and the financial and gambling industries learned how to comply with the regulatory oversight provided by the UIGEA, many of these reputable gambling sites have returned to provide services to US sports bettors.
The UIGEA did end up making the online gambling market safer for both the bettors and the operators by imposing a more reliable and stricter regulatory structure for how gambling-related transactions are processed. Gambling sites invested in top tier payment processors while all parties implemented higher-level security protocols to ensure the validity and safety of those transactions that are processed.
While US online gambling funding options are still somewhat limited in some regards, things have stabilized. The emergence of cryptocurrencies have filled the void left by the elimination of US-friendly e-wallets and failed credit card transactions. The UIGEA does not make it illegal for Americans to gamble online. The law simply regulates how online gambling transactions are processed.
The 2011 Department of Justice's Interpretation of Federal Laws
With the growth of online commerce, several states became interested in offering lottery game services online. This raised questions concerning the application of the Federal Wire Act, driving the DOJ to issue a clarification of the law's reach.
The Department of Justice ruled, and accurately so, that the federal government had no right to tell states that they could not sanction online gambling and therefore established that each US state has the authority to determine their own fate concerning online gambling with the exception of sports betting.
The repeal of PASPA took care of freeing sports gambling as the last remaining federally prohibited form of state-regulated online gambling. As of now, all 50 states have the legal ability to legalize and offer online gambling such as casinos, poker, bingo, and sports wagering. To date, only a handful of states have taken advantage of legal domestic online gambling. However, many states have pending bills to allow various forms of sports betting.
The 2019 DOJ Interpretation of Federal Gambling Laws
Following the repeal of PASPA in 2018, the reach of the Federal Wire Act has again come into question. In a new interpretation, which many believe was coerced by anti-online gambling activist Sheldon Adelson, the Department of Justice has indicated that the Wire Act prohibits not only interstate wagers but also the sharing of information across state lines.
This determination will certainly harm those states that have entered into interstate gambling compacts to share player pools and resources with other states. The opinion is being formally challenged through a lawsuit headed up by New Hampshire. As the situation unfolds, we will provide updates here.
What You Need to Know Going Forward
All of this legal information is good knowledge to have under your belt, no doubt about it. However, all you really need to know going forward is that there are no federal laws making gambling illegal in the United States either online or offline, and this includes domestic and offshore sports betting. States now determine the legal status of all gambling entertainment within their borders. As a sports betting resource guide, we want to make this point clear.
For those of you interested in betting on sport but who live in a state that has not authorized state-regulated sportsbooks, you'll have to either travel to a state with legalized sports betting or use a legitimate offshore sportsbook such as the ones you find listed on this site. You can check out our list of states that allow sports betting here or follow our list of recommended online sportsbooks.
US Gambling Laws
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Sports Book Rules - Las Vegas Sports Betting Rules
by Doc's Sports
When unforeseen events occur such as weather, power outages, or any other unanticipated event once the game has started, many people wonder how that will affect the wager. If an event has not started, all wagers should have no action and be refunded. But if the event has started and is interrupted and not completed it gets a little more complicated. The following will examine the special rules for each sport and give you a better idea of what to expect should the event not be completed on the same night. Always check with your book to know any special rules that may apply but according to the letter of the law: the following is how each event should be interpreted.
If you are looking for winning picks and predictions to help increase your sports betting profits you can view free expert picks on the six expert handicapper pages listed on our left sidebar in the 'Advisory Board' section. Doc's Sports has been recognized as a leader and trusted name in sports betting picks since 1971.
Standard Las Vegas Rules apply for any rules not mentioned here.
Football Betting Rules:
1. For a wager to have action, a football game becomes official after fifty-five minutes of play.
2. Games lasting under 55 minutes constitute 'No Action' and all money is refunded.
3. Wagering on the game point spread, money line, or totals include any overtime scoring.
4. Second half wagering includes any overtime scores.
Baseball Betting Rules:
1. For a wager to have action, a baseball game becomes official for sides plays (money line) after 4 ½ innings if home team is winning, or 5 innings if visiting team is winning.
2. If a game is cancelled or suspended, the winner is determined by the score after the last full inning (unless the home team scores to tie, or takes the lead in the bottom half of the inning, in which case the winner is determined by the score at the time the game is called).
3. Money will be refunded if the home team ties the game, and the game is then suspended.
4. Events must be completed on the same day to have action.
5. For totals or run line plays, a baseball game becomes official after 8 1/2 innings if home team is winning, or 9 innings if visiting team is winning. If the event does not go 9 innings (8 ½ if the home team is winning), all totals and run lines are refunded.
6. If a game goes past 9 innings and is not completed because of rain, curfew, etc, there is action on game total and run line wagers. These will be graded based on the current score.
Basketball Betting Rules:
1. For a wager to have action, a basketball game becomes official after forty-three minutes of play for NBA, and thirty-five minutes of play for college.
2. Games going under the official time constitute 'No Action' and all money is refunded.
3. Wagering on the game point spread, money line, or totals include any overtime scoring.
4. Second half wagers includes any overtime scores.
Hockey Betting Rules:
1. For a wager to have action, a hockey game becomes official after fifty-five minutes of play.
2. Games lasting under official time constitute 'No Action' and all money is refunded.
3. Games must take place on the site and date scheduled or all money is refunded.
4. Overtime scores and shootouts are included in all wagers unless specified.
Boxing Betting Rules:
1. If you wager on a boxer, and the bout ends in a draw and there is no draw option, the wager is 'No Action' and all bets are refunded. If there is a draw option and the fight ends in a draw, then all wagers on the fighters will be settled as a loss, and the wagers on the draw will be deemed a winner.
Golf Betting Rules:
Single day matchups are wagers on the complete 18-holes for that day. Holes played as part of a completion from the previous day's round, and playoff holes are not included in Single Day matchups. The full 18 holes will be considered in determining the outcome of the bet even if they are played on consecutive days. If both members of the matchup do not complete the full 18 holes, all bets are 'No Action'. If both players end the 18 holes in a tie, the bet is considered a 'No Action' wager.
Soccer Betting Rules:
You have three choices for the three betting options: Home, Away, or Draw (tie). The result of the game is decided after regulation play (90 minutes plus injury time). Overtime, the Golden Goal rule, and penalty kicks are not taken into consideration for soccer bets unless otherwise stipulated. You can usually bet on a winner or advancement (including OT & shootouts) but with different odds would be given.
Tennis Betting Rules:
For tennis betting, two full sets must be completed for wagers to stand. If fewer than two sets are completed all wagers will be refunded. Bets will stand regardless once the match has started even if the venue or date changes. If a player retires (injury) during the match and two sets are completed that player will be considered the loser.
Nascar Betting Rules:
Hulu Sport Betting Rules
When wagering on a driver matchup, both drivers involved must start the race (cross the finish line) otherwise the wager is 'No Action' and the money is refunded. In a case where the starting driver is replaced during the race with another driver from the same team (same car), the position the new driver finishes in will be awarded to the original driver. This holds for wagering on win odds and driver matchups.
New Jersey Sports Betting Rules
Doc’s Sports is offering $60 worth of member’s picks absolutely free – no obligation, no sales people – you don’t even have to enter credit card information. You can use this $60 credit any way you please for any handicapper and any sport on Doc’s Sports Advisory Board list of expert sports handicappers. Click here for more details and take advantage of this free $60 picks credit today