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California Business Journal
Understanding State Laws Around Gambling

Photo Credits: PR Daily News

Understanding State Laws Around Gambling

by Roberta Silverglate, California Business Journal
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When it comes to gambling, the nation’s authorities have always been a little uneasy with the activity. As such, there have been heavy legal restrictions on gambling. Since there are laws in the US at both the state level and federal levels regarding gambling, anyone wishing to place wagers on sports events or to gamble in any other way must tread carefully.

In the 21st century, especially in more recent years, however, the US has begun to relax its attitude towards gambling. In the noughties, several bills were introduced to soften federal laws on online gambling, and a new act would exempt poker and chess from the existing legislation that prohibited gambling. In 2018, the Supreme Court made the landmark decision to allow states to decide for themselves whether to legalize sports betting, which has had a major impact on the industry.

Gambling in states

The state’s right to determine their own sports gambling laws, and the general differences between states on gambling activities, can make the issue somewhat confusing for anyone wishing to bet on events or activities. One thing it’s helpful to remember, however, is that you should always check the laws in your state. Even if you gamble in a state where it’s legal, doing so might fall outside the laws of your state and land you in hot water.

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Most states allow some form of gambling. Utah, however, strictly forbids any sort of gambling and probably always will do. Meanwhile, Alabama, Alaska, and, surprisingly, Nevada has no state lottery, and in Hawaii, only social games are permitted, which take place in people’s homes.

New Jersey, which has pushed for the legalization of sports betting, is one of the least restrictive states for gambling. It’s possible to place bets online and in person in the state. Michigan, Maine, Mississippi, Colorado, Arkansas, Indiana, Illinois, West Virginia, Louisiana, Rhode Island, Oregon, and Iowa all also welcome sports betting online and in person, the latter normally in the state’s casinos.

Pennsylvania is another state that embraces gambling and wasted no time in legalizing sports betting both online and offline, although online sportsbooks must partner up with a state casino. If sports betting isn’t really you’re thing; you might prefer to play online slots in Pennsylvania or one of the other online casino games available.

However, as much as the US has warmed to gambling in more recent years, some states are still reluctant to allow it. Idaho is one state that is dragging its heels on gambling of any kind and doesn’t look likely to ever legalize it. Kentucky, Alabama, Alaska, California, Florida, Minnesota, Missouri, Oklahoma, Texas, Vermont, and Georgia also seems in no major hurry to legalize sports betting. Whether online or offline, it’s a no-go in these states.

Benefit from the legalization of gambling

Legalizing gambling is something that states might wish to consider since the benefits are huge. The legalization of gambling protects players rather than forcing them to go underground and into the hands of criminals, which is when things can get dangerous.

Legalizing gambling would also generate huge revenues as state governments can tax the casinos and other establishments or operators that offer gambling services. It’s not only through the casinos that gambling will produce revenue, however, as gambling also creates tourism. Players will not only spend money in a casino or other establishment but also at some of the surrounding local businesses.

New Jersey

New Jersey, which is one of the most liberal states when it comes to gambling, has reaped some immense benefits from this relaxed attitude. According to the American Gaming Association, there were nine casinos in the state, and casino gaming had a tax impact of $1.19 billion and an economic impact of $6.45 billion as of December 2021. Casinos pay a 9.25 % effective rate in tax on gross gaming revenue and 17.5% on online gaming revenue.

Pennsylvania

Just like New Jersey, Pennsylvania benefits heavily from the existence of casino gaming in the state. According to an article on the website of Pennsylvanian public news and media organization WITF, quoting data from the American Gaming Association, the state is “neck and neck” with New Jersey for no 2 behind Nevada in terms of commercial revenue from casino gaming. The industry is thought to generate around $1.5 billion per year in tax revenue, but some are eager to highlight the importance of the state promoting responsible gambling and protecting citizens as much as possible.

How does the future of gambling look in the US?

The future looks bright as more states look into the opportunities legalizing sports betting offers them. Higher security and safety standards in the online gaming industry, not to mention the benefits states that allow online betting, have encouraged them to consider legalization. Maryland is one state that is gradually beginning to see more and more sportsbooks launch. In general, sports betting looks set to grow and grow.

The US is gradually warming to different forms of gambling, especially sports betting. If you’re thinking of trying some gaming, online or offline, always check the laws of your state before engaging in this leisure activity. Laws differ from state to state, and even though it’s legal in the state you’re visiting, the laws of your state may forbid you from participating, so always be careful.

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Tags: AmericanbenefitsCasinoscommercialdatagaminglandmarklegallocalNevadanewsonlineonline casinoonline casino gamesPennsylvaniapokerrevenuesports bettingsports gamblingState Laws Around GamblingSupreme Courttax
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Roberta Silverglate, California Business Journal

Roberta Silverglate, California Business Journal

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