United States - Federal Box and States

Overview

Gambling regulation in the United States is a federal-state hybrid: Congress sets "red lines" (interstate betting communication, combating organized crime, payment protection and Indian gambling law), and states decide what exactly is allowed within their borders (casinos, lotteries, sports betting, online formats), on what terms and with what taxes. The repeal of PASPA in 2018 paved the way for states to make legal sports betting. A separate vertical is tribal gaming according to IGRA (Class I/II/III) on indigenous lands based on compacts with the states.

Federal Framework: Acts and Judgments

Key Federal Laws

Wire Act (1961) - a ban on the transmission of bets and "betting information" over interstate communication channels (originally about sports; interpretations have changed, in industry practice it is applied cautiously for any interstate rate/data flows).
Illegal Gambling Business Act - IGBA (18 U.S.C. § 1955) - criminal liability for illegal gambling if it violates state law and exceeds thresholds of scale.
Unlawful Internet Gambling Enforcement Act - UIGEA (2006) - does not criminalize the game as such, but prohibits the acceptance/processing of payments for "illegal Internet games" (defined by state/federal law); hence the strict rules for payment providers and banks.
Indian Gaming Regulatory Act - IGRA (1988) - created the Class I/II/III system and the state-tribe compact requirement for Class III (casino games). Established NIGC (National Indian Gaming Commission).

Court precedents

Murphy v. NCAA (2018) - Supreme Court overturns PASPA (1992): States now decide for themselves whether to allow sports betting and on what terms.
Other important lines: Wire Act federal boundary courts (dispute over "only sport" vs "wider than sport"), internet lottery and interstate lottery pool decisions. Practical: Operators avoid interstate betting/gaming data flows outside of specially permitted schemes.

The role of states: "mozaika" models

Typical formats that may be allowed by the state

Commercial casinos (example: Nevada, New Jersey, etc.) and/or tribal casinos by IGRA (Oklahoma, California, etc.).
Goslotherei (most states) and interstate lottery pools (Powerball, Mega Millions).
Sports betting - retail and online/mobile (after 2018, many states passed their laws; details vary).
Online casinos/poker - allowed in a limited number of states ("geofenced in-state" model).
VLT/collecting on horse tracks, bingo/charitable gaming - according to separate rules.
Fantasy Sports (DFS) - often allowed by special laws/memoranda, but not everywhere.

Licensing and Taxes

• licenses (operators, skin brands, suppliers, content studios, affiliates);
• taxes and fees (GGR/hold bets for sports and casinos, license/registration fees);
• product limits (e.g. list of sports, advertising, credit restrictions);
• responsible play (self-exclusion, limits, age barriers).

Geolocation

Online betting and iGaming are strictly geo-exclusive: access only within the state, where the product is legal. Used SDK geolocation (Wi-Fi, GPS, triangulation) and IP/device checks.

Tribal gaming by IGRA: How it works

Class I - traditional/social games (tribal self-regulation).
Class II - bingo and "similar" (including electronic bingo terminals); regulates NIGC + tribal rules; a state compact is not required.
Class III - "casino-style" (slots, roulette, blackjack, etc.) - you need a compact tribe with a state approved by federal authorities.
Computer κ you often include exclusivity, jealousy sharing, control standards and auditing.
For sports betting and online formats, tribes enter into compact supplements or separate agreements, taking into account state bans/permits and geofencing.

Online: sports, casino and poker

Sports betting (online/mobile)

A common model: market access through a ground partner (casino/track/team), several skin brands, GGR tax (rates vary significantly by state).
Restrictions: bans on betting on state college teams, limits on college prop betting, separate live-betting rules; credit card bans in a number of states.

iGaming (online casino/poker)

Available in a limited number of jurisdictions; GGR taxes are higher than sports.
Often require separate certificates for RNG/content, wallet-segregation, hard CC/age 21 + (or 18 + - depending on state/vertical).
Interstate poker pools are possible only with special agreements (multi-state internet gaming agreements) and taking into account the Wire Act.

Advertising and Marketing

Responsible advertising: bans on youth appeal, "false promises," imitation of "free" without disclosing conditions.
In many states, public "inductions" (registration bonuses, etc.) are limited: allowed as direct/opt-in (for example, email/SMS) and/or with hard disclaimers.
Restrictions on the use of athletes/influencers, especially in conjunction with a youth audience; bans on advertising near schools/near campuses - according to local rules.

Responsible Play (RG) and Consumer Protection

Self-exclusion: staff registers (months to years); often overlap both online and offline.
Limits and tools: deposit/rates/time, timeouts, reality checks, RG messages, links to help lines.
Age: more often 21 + for casino/sports, 18 + for lotteries/bingo (but there are exceptions).
Disputes and payments: mandatory complaint processing procedures, escrow/segregated accounts for client funds (according to the requirements of several states).

Payments and AML/Financial Circuit

UIGEA → banks/processors are required to block payments for "illegal Internet games"; therefore, operators are building a clear legal map of available states and MCC routing.
BSA/FinCEN: KYC/CIP, transaction monitoring, SAR/CTR; casino - thresholds of cash transactions and video surveillance; online behavioral AML and sanctions screening.
A number of states have bans on credit cards for iGaming/sportsbooks recharges; ACH, debit, e-wallets, vouchers, cash through retail (cash at cage/retail) are common.

Taxes and fiscal rules

Federal level (players): winnings are subject to declaration (W-2G), deductions are applied by thresholds and game types; professional players declare as income from activities.
State level (operators): the tax rate on GGR varies greatly across verticals and states (sports - from "low" to very high, iCasino - often above sports). Additionally - license/registration fees, contributions to RG funds.
Tribal gaming: payments by compacts instead of taxes (rev-share/fees).

What is/is not allowed (high-level)

• Commercial and/or tribal casinos;
• Goslotherei and interstate lottery pools;
• Retail and online sports betting;
• Online casino/poker (only in some states);
• DFS and charitable gaming - where explicitly allowed.

• Interstate transfer of bets/game data without special permission (risk under Wire Act/other norms);
• Online gaming/sports where the state did not allow;
• Advertising without compliance with local restrictions;
• Accepting payments that violate UIGEA.

Compliance checklist (for operator/supplier)

1. Legal map: for each vertical - a list of states "ON/OFF," links to statutes/rules, license requirements and market access partners.
2. Geoscience and micro-geo: geolocation SDK, Wi-Fi/GPS, proxy/VPN control, false positive/negative procedures.
3. KYC/AML: CIP/KYC, sanctions/PEP screening, behavioral AML, SAR/CTR, SOF/EDD risk case reports.
4. Responsible game: self-exclusion (staff/own lists), limits, timeouts, reality checks, 24/7 support.
5. Advertising/PR: audit of "Indians," age targeting, youth appeal ban, coordination of offers with local rules.
6. Content and certification: RNG/lat tests, payout interest, slot certification, separate requirements for live-casino.
7. Payments: white-listing MCC, setting up providers by state, bans on credit cards, returns/chargeback procedures.
8. Reporting and taxes: GGR/hold format by verticals, collection of RG contributions, timely remittances by states/compacts.

Perspective (2025-2027)

Sports: gradual "oversaturation" with the state map, point tightening in advertising and the college segment, an increase in live rates while controlling risks.
iGaming: slow but steady trend to expand online casinos in several more states (tax motive); interstate online poker - point agreements.
Tribal: active adjustment of compacts for sports/online, combined "state + tribes" ecosystems.
Regulatory: harmonization of RG/marketing standards, data requirements (audit trails), increased transparency of affiliates.
Technologies: AI tools for RG/AML and real-time risk scoring; deepening of Device Fingerprinting and KBA/ID-shipyards.

Terms

Wire Act - Interstate Rate Transfer/Info Act (1961).
IGBA (§ 1955) - criminal liability for illegal gambling (1970).
UIGEA (2006) - ban on payment processing for illegal Internet games.
IGRA (1988) - Indian gambling law; Class I/II/III and compacts.
PASPA (1992, repealed in 2018) is a federal ban on states from legalizing sports betting.
NIGC - federal oversight of tribal gaming.
Geofencing - out-of-state traffic clipping technologies.
Self-Exclusion - self-exclusion programs for players.