The Federal Wire Act of 1961 outlawed interstate wagering on sports but did not address other forms of gambling. The Unlawful Internet Gambling Enforcement Act of 2006 (UIEGA) did not specifically prohibit online gambling; instead, it outlawed financial transactions involving online gaming services, effectively turning online gaming into a video game with no real prizes available to winners. Young gamblers are notoriously unaware that most internet gambling is illegal in the United States, as exemplified by the case where a University of Wisconsin honor student lost over $72,000 in. Skill Gaming Legal Guide By: Lawrence G. Walters The Skill Gaming industry is growing, and many entrepreneurs are looking at new ways to tap the market. Fantasy sports, trivia games, video game tournaments, and a wide variety of other skill-based activities have captured the public’s interest. Certain states, like Louisiana, for example, prohibit online gambling in their state constitution. One excerpt from the Bayou State’s gambling laws reads: “Gambling by computer is the intentional conducting of any game or contest whereby a person risks the loss of anything of value in order to realize a profit when accessing the Internet, World Wide Web, or any part thereof by way of any computer.”.
Oh, Lone Star State. I have a bone to pick with you. This is a touchy subject, too, as I’m a proud citizen of the great state of Texas.
I love your food; I love your diverse cultures and climates. I love that you can be country and hipster all at the same time.
But.
I want to know why you hate gambling.
This is a heart breaker for this gambling Texan girl.
Why are almost all forms of gambling illegal in my home state?
Why do you want me to take my hard-earned dollars out of state to spend on my favorite hobby?
I don’t want to give that taxable revenue to Louisiana, Oklahoma, or Nevada. I want to go to the Gulf Coast and let my family enjoy our warm waters.
Then I want to gamble.
Why are you keeping this from me?
Did I do something wrong?
Why are you so mad at gambling?
So many questions.
Let’s see if I can answer some of them.
The History of Gambling in The Lone Star State
Texas, much like its neighbors to the east and west, has changed hands many times of the course of its history. It was once even its own sovereign nation. Texans often refer to the Republic of Texas.
Texas was originally part of multiple native tribes, but we know how this goes. It changed hands between the Spanish (Tejas is the Spanish spelling), American, Mexico, and even the French.
Texas has the strictest real money gambling laws in the United States.
I would’ve guessed our Mormon friends in Utah would be a no go on gambling, but no.
It’s Texas.
Texas outlawed almost all forms of gambling during Prohibition in the 1920s when vice laws became prevalent in Texas. This move towards outlawing vices like alcohol, prostitution, gambling, and narcotics became prevalent in this once wild country.
This was huge swing from the Wild West attitude of the 1800s. Texas is the home of many outlaws like Billy the Kid and Jesse James. Let’s not forget that Bonnie and Clyde were Texas residents, too.
This is not a neat or prim and proper state. We like to be left alone, not told what to do, and keep to ourselves.
The Prohibition Era ushered in a clamping down of the above vices to almost do a 180 from the torrid, wild past of the state.
So, when did the State of Texas make gambling illegal?
It’s a long drawn out answer. I wish it were easier. I wish it were something simple like 1920.
But no, it was a slow suffocation of the hobby.
The state would see local governments outlaw vices in their regions starting in the Reconstruction Era of the post war South. The nail in the coffin was the passage of the 18th amendment to the United States Constitution. This made alcohol and gambling illegal throughout the country.
Once this amendment was overturned, many states started to reopen racetracks and saloon or bars. Texas dug its heels in the ground on the topic of gambling.
The legality of gambling has wavered throughout the state over the years, but one thing has stayed true.
Texas doesn’t condone most forms of gambling.
Texas has 2 casinos. We are number 2 in size and population in America. We are last in gambling.
And it doesn’t look like the legislature is going to budge anytime soon.
Why Is Internet Gambling Illegal In Some States Allow
There are some obscure loopholes in our gambling laws, and the lottery is a big government business.
What Type of Gambling Are Legal in Texas?
There are a few types of gambling that are legal in Texas.
Most of these are weird – except for the lottery.
The Texas State Lottery
The State of Texas legalized a state lottery in July of 1991. That was a big win. I remember when my parents got together with their friends to go in a ton of tickets. My siblings and I started seeing scratch off tickets in birthday and holiday cards from our grandparents.
Playing the lottery in Texas is a big deal. An estimated 68% of Texan play some form of the lottery. With almost 40 million residents, that is a lot of money.
I am from Austin, the capitol of the state. Downtown they used to live film the drawings and we would watch through the window on our way to the bar when I was in college at University of Texas at Austin.
I don’t know anyone who hasn’t played the lottery. When my husband and I were young and broke we would buy scratch off in hopes to win enough to cover our bills
The Texas lottery is as common as a rodeo or going 2 stepping after a meal of Mexican food or BBQ.
The state makes billions off the proceeds. This money is allocated to schools and wildlife and land protections. Texans are big hunters which makes them conservationists by default.
Horse and Dog Racing
Under the pari-mutuel racing rules, Texans can participate in dog and horse betting. There are 3 class 1 racetracks in the entire state.
This type of gambling was legalized in Texas in 1978. Texas was about 30 years behind the rest of the country.
I didn’t grow up with adults going to the races because of the old hold over of prohibition and the Progressive Movement.
Native Tribe Casinos
Under the Indian Gaming Regulatory Act, the 3 recognized native tribes of Texas were granted the right to open gaming establishment.
The Kickapoo Tribe has the Lucky Eagle Casino. It’s found in Eagle Pass, in far West Texas on the Mexican border. It’s a long hot drive from almost anyone in the state except Laredo.
The Tigua Tribe owns and operates the Speaking Rock Entertainment Center.
You’ll find it in El Paso on their native lands. El Paso is the 5th most populated city in the state, but it’s still a 9+ hour drive from the Dallas Fort Worth Metroplex.
Are you seeing a trend?
The Alabama-Coushatta Tribe offers gambling, too – at Naskila Gaming.
That’s located in Livingston, just north of Beaumont, Texas. It’s only a 3-hour drive, but there’s not a lot to see once you get there
The Naskila Gaming and Speaking Rock Entertainment have been wrapped up in red tape and legal disputes for years and may not be able to survive. This is against trend for other native casinos in other states.
You’ve heard of WinStar?
The largest casino in the world?
It is a native owned casino and has its own economy. It’s literally an hour drive from my house over the Oklahoma border.
What gives?
What Are 8-Liners and How Do They Work?
If you’re not from here, you’ve probably not seen these shady little machines. They’re the video poker looking machines in gas stations and dive bars.
They are gaming machines that offer noncash prizes of less than a $5.00 value. I have played these at a now closed bar (probably because they didn’t ID people).
Nowadays I see them mostly in underserved communities. It’s always a slimy gas station. The state legislature has been trying to outlaw them since the 80’s.
They argue that they qualify as in-person gambling and don’t follow that state guidelines of approved gambling.
That’s not the type of hobby gambling I’m look for in my home state, are you?
Casino Cruises
This one is tricky. I’m impressed to be honest. These one day “cruises” take people to a cruise to essentially nowhere.
They stop in international waters so that there is no jurisdiction to say, “Quit it!”. It is pretty genius but expensive.
The cost has caused many startups to fail or rebrand with more failure. They leave out of a Texas port with mostly Texas passengers.
The problem is most of the Texas ports are a short drive to Louisiana, our eastern neighbor. Louisiana is very pro gambling.
See the problem?
Why would I get on a day cruise and risk sea sickness when I can take my entire family to the Golden Nugget Lake Charles Casino and Resort for an all-inclusive resort vacation?
Conclusion
It’s not good. Texas has even made friendly wagering illegal in the state. If I host a poker night with real money, I could serve some prison time.
When will Texas catch up and join the 21st, heck even the 20th, century?
I don’t know.
Every year it’s on the state legislature’s docket.
Every session it fails.
Maybe other states have made it too easy for Texans to come visit.
I see it as a missed opportunity for tax revenue for the state. And tourist dollars. Texas is so big that driving from Dallas to the coast is considered being out of state in other parts of this country.
Austin has 100s of 1000s descend on it every March for the SXSW festival.
Why not also make some tax venue off them with gambling?
It just doesn’t make sense.
But this state likes to do things the hard way because that’s how it’s always been. For a long time.
I would love to hear your thoughts and questions. Please leave a comment below.
If you read a lot about gaming, you probably see advice telling you to gamble more online. I have given this advice myself because there’s really no better way to get a lot of games in quickly, gain experience, test yourself in tournaments, etc.
In fact, playing online poker is always widely regarded as one of the best ways to start earning serious poker income if you want to go pro.
There’s only one small problem with this particular piece of advice—online gambling is still either operating in a legal gray area or flat out illegal. If you don’t know your local laws, there’s a very good chance you could end up doing something that’s a crime with a very easy-to-follow paper trail.
The good news is that online gambling is getting legalized in more places all the time, and many states offer some sort of online gaming. Still, there are better and worse states across the United States when it comes to allowing online gambling.
Also, it should be noted, when talking about this issue, “online gambling” is limited to money directly changing hands as it would in a casino.
It is my understanding (in other words, the understanding of a non-lawyer) that any game that doesn’t involve money is fair game. You can play as much video poker or roulette or whatever as long as you’re not wagering money.
Why Is Internet Gambling Illegal In Some States In America
Areas where you pay money to earn virtual currency that you can’t then cash out also appear to be legal as a few sites (like WSOP.com) appear to operate on this basis. Again, I am not a lawyer. Please feel free to contact a gaming law professional within your area for more specific information.
Is Online Gaming Illegal in the US?
No. Yes… Maybe?
There seems to be a lot of back and forth on the topic on whether it is illegal to play poker or table games at online casinos. (The matter of sports betting is far more certain as all parties agree that betting on sports is illegal in places unless it is specifically allowed.)
Still, there are several very good opinions about online gaming that generally boil down to the argument that there is nothing that specifically disallows one from gaming online. This is especially true if the casino is hosted outside the US.
On the other hand, the FBI has a very well-stated opinion on their site that says online gambling with real money is completely illegal and goes on to show that people have been arrested for it. This article, though dated in 2007, is a pretty strict warning to avoid online gambling.
Again, I’m not a lawyer, but I would never advise one to go against what the FBI said, even if it was in 2007. This is doubly true because a search of FBI.gov does not show that the 2007 opinion was reversed and, in fact, does show arrests for activities outside of online gaming. Therefore, you take your freedom in your own hands if you carelessly gamble online.
Why Is Internet Gambling Illegal In Some States Still
With that said, there are plenty of exceptions to whether you can or cannot gamble online, and they vary by state.
New Jersey and Pennsylvania Are the Best States for Online Play
Of the three categories of online gambling activities (casino, poker, and sportsbooks), if you live in New Jersey and Pennsylvania, you have room to celebrate. Your online gambling laws are the most lenient in the country, and you can do all three. More than likely, it won’t be long until more states adopt this attitude, but for now, these states are the most open to letting you gamble from your own home.
Delaware, Nevada, West Virginia, &, Rhode Island Have Online Gambling Options
If living in New Jersey or Pennsylvania is not an option for you right now, there are other states that openly allow some combination of the three major online gaming activities. Delaware will allow you to both frequent an online casino and play poker online.
West Virginia and Rhode Island also allow online sportsbook betting, making them one of a very few number of states to allow sports betting. Strangely enough, Nevada, a state that has counties with legalized prostitution and legalized recreational marijuana will only let you play poker online. They want you to visit in-person casinos for your table games. Nevada sportsbooks do offer online betting through land-based sportsbooks and their respective apps.
Some States Operate in a Gray Area
If you don’t live in one of the states mentioned above, it’s time to start asking around to see what is and isn’t legal. (By the way, don’t just blindly trust the internet on this matter. If you have any concerns, always seek out a legal gaming professional with a real understanding of the law.)
With that said, a lot of state laws are strange or poorly worded when it comes to online gambling. For instance, both Kansas and Missouri have laws that generally fail to mention online gambling. Given how old some state constitutions are, this is hardly surprisingly. Still, both have laws that deal with gambling, though they focus on specific areas (for Missouri, riverboats; in Kansas, lotteries and moral crime).
Therefore, as concerned citizens, each of us has to ask themselves whether it makes sense to try gambling online. There are a lot of sites that preach a doctrine of whatever is not addressed specifically is legal.
Frankly, this is an argument that, I believe, does have some merit in a court of law. On the other hand, it may fail to encompass the full breadth of the law.
For instance, according to K.S.A. 21-6404 of the Kansas Statutes, gambling, which is partially defined as “making a bet” is a class B nonperson misdemeanor. In other words, it’s a crime. So, while the Kansas Constitution doesn’t specifically call out online gambling as being illegal, it does say making a bet is a misdemeanor.
There’s likely an argument that a good lawyer can make in this case, which would somehow show that online gambling is not covered under those statutes. That’s for good lawyers and courtrooms to decide.
What it really boils down to is what the police or federal agents think when they decide if they are going to make an arrest, what the district attorney thinks when they decide to prosecute, and what the judge thinks when they hear the case. If that’s acceptable to you, then you can make that choice. However, online gambling is not for everyone.
Plus, Pennsylvania is apparently a really nice place to live and all online activities are legal there.
Best Bet: Find a Casino or a Non-Cash Site
Because I’m not a lawyer, I can’t tell you that anywhere in the United States is legal to gamble except the states mentioned above. Even then, I would argue that you should check to make sure laws haven’t changed.
As always, while playing poker or casino games online is fun, there are ways you can do it and not get in trouble with the law at all. When it comes to playing games for money, your best bet is to head out to a licensed, reputable casino offshore and play there. It’s a little more work and requires a little more planning, but it’s legal.
Why Is Gambling’s Legality Even an Issue?
This is a good question, though one that’s shrouded in a lot of history. First, gambling in general has often been made illegal because it is an affront to “morality laws” which state the gambling leads to general bad behavior.
There are also a number of non-moral reasons for making gambling illegal, including protecting people from losing all their money on bets or falling into gambling addiction. Plus, physical casinos are notorious for money laundering. Online casinos have even less transparency.
On the other hand, some of the reasons why online gaming is illegal clearly have to do with taxes and keeping money from heading overseas.
There is some validity to this, too, though making it legal to operate an online casino from inside the US (and regulating and taxing it) would solve a lot of these problems.
Conclusion
It is a little hard to draw a conclusion on the matter of online gaming in the United States. It seems strange that just about everywhere has some sort of legalized gambling outside the home, but few methods for gambling online.
Still, for now, this is the situation in which gamblers find themselves. There are a few places which clearly welcome online gamblers to peruse their hobby in some form. For most of the country, though, the online gambling is a gray area in which there is no specific law against gambling. There’s also plenty of general laws that prevent it.
Why Is Internet Gambling Illegal In Some States Going
In the end, the best policy is to hit a casino and lobby your Congresspeople to change laws. That keeps you out of hot water and playing the games you love so well.