Sports Betting Laws In The United States

There are three primary laws that apply to sports betting in the United States. They are the Federal Wire Act, the Unlawful Internet Gambling Enforcement Act (UIGEA), and the Professional and Amateur Sports Protection Act (PASPA). The Wire Act prohibits the transferring of wagering information or money over a wire communications device. The UIGEA makes it unlawful for online gaming sites to accept money from bettors. PASPA bans government institutions or individuals from supporting sports betting operations. Let’s delve a little deeper into the nuances of each of these laws.

The Federal Wire Act was passed in 1961, when wired communication was limited to telephone, cable and fiber-optic technologies. Indeed, one of the controversies surrounding the Wire Act today is that wireless internet doesn’t fall into the category of wired communications, and should be exempt from the law. More importantly, the Wire Act was never intended to target casual bettors, but was meant to combat the rise of organized crime operations and mafia-related activities.

Between 1996 and 2006, the government tried unsuccessfully to update the Wire Act to more explicitly prohibit all types of gambling. The UIGEA was passed instead. In 2011, the Department of Justice released a memorandum saying that the Wire Act applies only to sports betting. Even so, the Wire Act doesn’t apply to non-US sites or to the average small-time bettor.

The next law we will look at is the UIGEA. The Unlawful Internet Gambling Enforcement Act was in some ways a reaction to the failure of Congress to update the Wire Act. Under the UIGEA, internet gaming site operators may not accept funds from bettors. The legislation does not prevent bettors from placing wagers, however. Again, like the Wire Act, the UIGEA does not affect sites operating outside the United States. It only applies to sports betting sites that are based inside the US.

Any way you look at it, the UIGEA is a controversial law. It was tacked on to the end of the Safe Port Act at the very last minute. Frank Lautenberg, a Democratic senator from New Jersey, said that no one in the Senate or House of Representatives had a chance to read the UIGEA before it went through.

The last of the three important laws that apply to online gaming websites is the Professional and Amateur Sports Protection Act, or PASPA. The law specifically prohibits sports betting in the United States. Like the Wire Act, the main purpose of PASPA was to curb organized crime. Some argue that the law is unfair because it gives four states the option to allow legal wagering while denying that right to the other 46. Another argument against PASPA is that the law actually has increased the amount of underground sports betting operations.

PASPA doesn’t specifically affect online sports betting sites. It does dictate which states may have land-based sports betting (Nevada, Delaware, Oregon, and Montana). As it stands, though, Nevada and Delaware are the only states in which actually have any sportsbooks. Only residents of those states in which it’s legal may participate. The nice thing about online sportsbooks that function outside of the United States is that anyone of legal age may use them.

If the three aforementioned gaming laws didn’t exist, states would be able to regulate themselves. Unfortunately, the three laws combined make for unyielding anti-gaming legislation. Again, many lawmakers are critical of a trifecta of US sports betting laws that outlaw sports betting in all states except a select few. Critics question the fairness of federal regulation that allows Nevada, Delaware, Montana, and Oregon the privilege of hosting online gaming sites. The legislation allows only residents of the state in question to use these sites.

Neither state nor federal law prevents players from using online gaming sites. The Wire Act, the UIGEA, and the PASPA do not apply to individual players or sites outside of the United States. Any player in the US may use an online site as long as the site accepts players from all states. There are many great sportsbooks for US players that function within full compliance of state and federal law. These sites accept players from all 50 states

Players should check their states of residence for legal betting ages. Most states set the legal age between 18 and 21, although there are a few (Alaska, District of Columbia, Hawaii, Kentucky, Tennessee, Utah, Vermont, and Virginia), that have no age restriction. The sites require players to be either 18 or the legal age set by the state. When in doubt, it’s always a smart idea to go with the higher number in order to avoid any negative consequences. These include account termination, forfeiture of funds, or even legal action in some cases. Be careful and you’ll be okay.

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