US online gambling laws
US online gambling laws explained in plain English: what federal statutes such as the Wire Act and UIGEA actually say, why state law decides whether online casino play is lawful where you live, and how taxes, offshore licenses and regulator actions fit in.
By the Best USA Casinos team. Updated . Facts and offers checked October 28, 2026.
Federal online gambling laws: the Wire Act, UIGEA and more
No single federal law makes online casinos legal or illegal everywhere. Instead, several federal statutes set the framework, and most of them aim at gambling businesses and payment processing rather than at individual players.
| Law | What it does | Our explainer |
|---|---|---|
| Wire Act (1961), 18 U.S.C. § 1084 | Bars betting businesses from using wire communications for interstate bets; the First Circuit held in 2021 that it covers sports betting | Wire Act |
| UIGEA (2006), 31 U.S.C. §§ 5361–5367 | Bars gambling businesses from accepting card, bank and check payments for unlawful internet gambling | UIGEA |
| Illegal Gambling Business Act, 18 U.S.C. § 1955 | Makes running a gambling business that breaks state law a federal crime when size tests are met | Illegal Gambling Business Act |
| Indian Gaming Regulatory Act (1988) | Sets the rules for tribal gaming and tribal-state compacts | Indian Gaming Regulatory Act |
| Murphy v. NCAA (2018) | Struck down PASPA, letting states legalize sports betting | PASPA and Murphy v NCAA |
The Wire Act's text, at 18 U.S.C. § 1084 (opens in a new tab), applies to people "engaged in the business of betting or wagering". In New Hampshire Lottery Commission v. Rosen (opens in a new tab), decided January 20, 2021, the First Circuit held that its prohibitions apply only to sports betting. UIGEA defines unlawful internet gambling by reference to the law where the bet is made, which is one reason state law matters so much.
Is online gambling legal in the US? State law decides
For players, the answer depends on the state. Seven states license real-money online casinos: New Jersey, Pennsylvania, Michigan, West Virginia, Delaware, Connecticut and Rhode Island. Maine legalized tribal-run online casinos in January 2026, but none had launched by October 2026. Elsewhere, no state licenses online casinos, and some states have specific statutes, such as Washington's RCW 9.46.240, which makes knowingly transmitting or receiving gambling information over the internet a class C felony.
Offshore casinos, including all the casinos we promote, are not licensed by any US state. We never tell readers it's legal for them to play offshore, and we don't claim they'll be prosecuted either. We report what each state's law and regulator say. Start with is online gambling legal in the US, offshore casinos legality and cease and desist letters, then find your state on the states hub.
Sweepstakes casinos have their own legal fight. States including New York, New Jersey, California and Oklahoma have banned the dual-currency model; see sweepstakes casino bans.
Federal law
State law and licensing
Gambling taxes and offshore casino licenses
Gambling winnings are taxable federal income, whether you win at a licensed site or offshore. The IRS instructions for Form W-2G (opens in a new tab) set a $2,000 reporting threshold for slot, keno and bingo winnings paid in 2026. From the 2026 tax year, the deduction for gambling losses is reported to be capped at 90% of losses and only up to your winnings; check IRS guidance. See gambling taxes, the W-2G form and the gambling loss deduction.
Offshore casinos may hold licenses from places such as Curaçao, Anjouan or Costa Rica. Curaçao's new National Ordinance on Games of Chance came into force on December 24, 2024, and replaced the old sublicense system with direct licensing by the Curaçao Gaming Authority. None of these licenses is a US state license. Our pages on the Curaçao license, Anjouan license and player protections offshore vs licensed explain what they do and don't cover.
US online gambling law timeline: from the Wire Act to SB 1589
US gambling law has moved in bursts. This timeline lists the federal and state milestones our law pages cover, each dated from the statute, ruling or regulator release.
| Date | Event |
|---|---|
| 1961 | Wire Act, 18 U.S.C. § 1084, bars betting businesses from using wire communications for interstate bets |
| October 17, 1988 | Indian Gaming Regulatory Act enacted |
| 2006 | UIGEA passed, targeting payments for unlawful internet gambling |
| 2011 | Justice Department opinion limits the Wire Act to sports betting |
| May 14, 2018 | Supreme Court strikes down PASPA in Murphy v. NCAA |
| November 2, 2018 | New Justice Department opinion says most of the Wire Act reaches non-sports gambling |
| January 20, 2021 | First Circuit holds the Wire Act applies only to sports betting |
| January 22, 2021 | Michigan's licensed online casinos launch |
| March 5, 2024 | Rhode Island's single online casino operator launches |
| December 24, 2024 | Curaçao's National Ordinance on Games of Chance comes into force |
| April 9, 2025 | Michigan cease-and-desist release names Silver Oak and Planet 7 |
| August 14, 2025 | Michigan release names Miami Club and Slot Madness |
| August 15, 2025 | New Jersey's sweepstakes casino ban (A5447) signed |
| January 1, 2026 | California's AB 831 sweepstakes ban takes effect |
| January 11, 2026 | Maine's LD 1164 becomes law, for tribal online casinos |
| April 17, 2026 | IRS and Treasury proposed rule states the 90% loss limit and $2,000 W-2G threshold |
| October 8, 2026 | Michigan release names SlotoCash |
| November 1, 2026 | Oklahoma's SB 1589 takes effect |
Read the Wire Act, UIGEA and sweepstakes casino laws pages for the detail behind each line.
The Wire Act and the Justice Department's changing opinions
The Wire Act's reach has flipped twice in a decade. In 2011, the Justice Department's Office of Legal Counsel, asked about Illinois and New York plans to sell lottery tickets online, concluded the Act covers only sports-related gambling. In an opinion dated November 2, 2018 and published that December, the Office of Legal Counsel reversed course (opens in a new tab), finding that only the ban on transmitting betting information is limited to sports.
Deputy Attorney General Rod Rosenstein gave businesses 90 days before prosecutors would apply the new reading, according to a Congressional Research Service legal sidebar. Then, on January 20, 2021, the First Circuit held in New Hampshire Lottery Commission v. Rosen that the Act's prohibitions apply only to bets on sporting events or contests.
That ruling isn't the last word everywhere. A June 18, 2021 letter from state attorneys general told the Attorney General the ruling binds the Department only as to the parties in that case, and asked it to drop the 2018 opinion. We found no Supreme Court review. For players, the practical point stays the same: the Act targets people in the betting business, and state law decides whether playing is lawful where you are.
The Illegal Gambling Business Act and tribal gaming law
Two more federal laws shape the market. The Illegal Gambling Business Act (opens in a new tab), 18 U.S.C. § 1955, makes it a federal crime to run a gambling business that breaks state or local law, involves five or more people and either runs for more than 30 days or takes $2,000 in gross revenue in a single day. The penalty is a fine, up to five years in prison, or both. Like the Wire Act, it's aimed at operators.
| Class | What it covers | Who regulates it |
|---|---|---|
| Class I | Social games for minimal prizes and traditional tribal gaming | Tribes alone |
| Class II | Bingo, including electronic aids, and certain non-banked card games | Tribes, with NIGC oversight |
| Class III | Everything else, including casino games and slot machines | Under a tribal-state compact |
Class III gaming is lawful only under an NIGC-approved tribal ordinance, in a state that permits such gaming, and under a compact in effect. That's why tribal compacts shape gambling in states such as Oklahoma, where 33 tribes ran 137 gaming facilities as of June 30, 2024, and why Maine's 2026 online casino law runs through the Wabanaki Nations. See tribal gaming and the Indian Gaming Regulatory Act page.
Gambling tax rules for 2026 in numbers
Gambling winnings are taxable federal income, and the reporting rules changed for 2026. These figures come from the IRS instructions for Form W-2G and the Federal Register.
| Rule | Figure |
|---|---|
| W-2G threshold for slots, keno and bingo | $2,000 or more (keno net of the wager) |
| W-2G for poker tournaments | Net winnings after the buy-in meeting the threshold |
| W-2G for other wagering, lotteries and pools | Meeting the threshold and at least 300 times the wager |
| Regular withholding | 24% where winnings minus the wager exceed $5,000, on certain types; not slots, keno or bingo |
| Backup withholding | 24% if you don't give a correct taxpayer ID |
| Loss deduction | Only up to wagering gains; from 2026, reported cap of 90% of losses |
The 90% rule comes from section 70114 of the 2025 tax law, H.R. 1, and an April 17, 2026 proposed rule in the Federal Register (opens in a new tab) states the same limit. A House amendment offered by Rep. Dina Titus would restore 100%; we found no record of it being enacted. Check IRS guidance, and see our gambling taxes guide and big win taxes.
Offshore casino licenses compared: Curaçao, Anjouan and Costa Rica
Offshore casinos often point to a foreign license. None is a US state license, and none changes what your state's law says. Here's how the three names you'll see most compare.
| License | What's published | Partners linked to it |
|---|---|---|
| Curaçao | Direct licensing by the Curaçao Gaming Authority since December 24, 2024; 604 provisional licenses granted and 139 applications rejected by December 17, 2025 | Reported for SlotoCash, Miami Club and Decode; not named on their own sites |
| Anjouan | Silver Oak's terms cite the Computer Gaming Licensing Act 007 of 2005 | Silver Oak (its terms); reported for Slot Madness |
| Costa Rica | No license number published in the sources we checked | Reported for Planet 7, Royal Ace and Slot Madness |
Curaçao's regulator has also published an updated complaints policy (June 18, 2025) and dispute guidelines (September 8, 2025) for its licensees. Whether a casino holds a current license is something to check on the regulator's own site, such as the Curaçao Gaming Authority's license register. Several reviewers say the partners' licenses aren't shown on their sites at all, which our Costa Rica casino license page discusses.
Federal gambling bills in 2025 and 2026: prediction markets, not casinos
Congress hasn't taken up online casinos directly. A Congressional Research Service report dated August 17, 2026 identified no federal bill dedicated to legalizing or banning online casinos. Instead, the bills target prediction markets, and several define a "casino-style game" to keep such contracts off exchanges regulated by the CFTC.
- Prediction Markets Are Gambling Act (S. 4160 / H.R. 9856): would bar casino-style and sports contracts on CFTC exchanges and preserve state law.
- SAFE Bet Act of 2025 (S. 1033 / H.R. 2087): would set federal minimum standards for state-regulated sports betting.
- S.Res. 708: a Senate rule barring Senators and staff from prediction markets, agreed to April 30, 2026.
Most listed bills had no recorded action beyond introduction or committee. Our prediction markets page tracks them, and daily fantasy sports laws covers the other big state-by-state question.
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Frequently asked questions
Is it illegal to play at offshore online casinos?
It depends on your state. Federal laws such as UIGEA and the Wire Act target gambling businesses and payment processing rather than making a bet a federal crime for the player. State law decides whether playing is lawful where you live, and some states, such as Washington, have statutes aimed at online gambling. We don't tell readers it's legal or that they'll be prosecuted. Read is it illegal to play at offshore casinos and offshore casinos legality.
What does the Wire Act say about online casinos?
The Wire Act, 18 U.S.C. § 1084, bars people in the betting business from using wire communications to transmit interstate bets. The Justice Department argued in a 2018 opinion that it reaches non-sports gambling, but the First Circuit held on January 20, 2021 that it applies only to sports betting. It is aimed at operators, not individual players, according to its wording. Read our Wire Act page and what is the Wire Act.
What is UIGEA?
The Unlawful Internet Gambling Enforcement Act of 2006 bars gambling businesses from knowingly accepting credit, electronic transfers, checks and similar payments in connection with unlawful internet gambling. It defines unlawful gambling by reference to the law where the bet is made, so it relies on state and other federal law. It doesn't make placing a bet a federal crime for the player. It is the background to many US card declines. See our UIGEA page and what is UIGEA.
Do I have to report offshore casino winnings to the IRS?
Yes. Gambling winnings are taxable federal income wherever you win them, including at offshore casinos that don't send you a W-2G. The W-2G is the payer's form; your duty to report winnings exists either way. Keep records of your wins and losses, because the loss deduction is limited to your winnings and, from 2026, reported to be capped at 90% of losses. Read do offshore casinos report to the IRS and our gambling taxes guide.
What is a cease-and-desist letter from a state regulator?
It's a formal demand from a state regulator or attorney general telling an unlicensed operator to stop offering gambling in that state. The Michigan Gaming Control Board has issued many, naming offshore casinos including Silver Oak, Planet 7, Miami Club, Slot Madness and SlotoCash between April 2025 and October 2026. A letter shows the state considers the site unlicensed and illegal there. See cease and desist letters and state regulators.
Is online gambling legal in the US?
Some forms are, depending on the state. Seven states license real-money online casinos, many more license online sports betting, and Nevada licenses online poker but not online casinos. No federal law makes online gambling legal or illegal everywhere; UIGEA, for example, defines unlawful gambling by reference to state law. Offshore casinos aren't licensed by any state. Read is online gambling legal in the US and states with legal online casinos.
What is the Illegal Gambling Business Act?
It's a federal law, 18 U.S.C. § 1955, that makes it a crime to run a gambling business that breaks state or local law, involves five or more people and either runs for more than 30 days or takes $2,000 in a single day. Penalties include fines and up to five years in prison. It targets operators, not players, and depends on state law being broken. See our Illegal Gambling Business Act page and offshore casinos legality.
What did Murphy v. NCAA decide?
On May 14, 2018, the Supreme Court held 6-3 that PASPA, the federal ban on states authorizing sports betting, violated the Constitution's anticommandeering rule, and struck down the whole law. That let each state decide whether to legalize sports betting, which many have since done. It didn't legalize online casinos, which still need their own state law. Read PASPA and Murphy v NCAA and sports betting laws.
Is a Curaçao casino license valid in the US?
No. A Curaçao license is issued under Curaçao law by the Curaçao Gaming Authority, and it isn't a US state license. Under UIGEA, whether internet gambling is unlawful depends on the law of the state where the bet is made, so a foreign license doesn't settle the question for US players. It also doesn't give you a US regulator to complain to. See our Curaçao license page and what is a Curaçao license.
What is the 90% gambling loss rule?
From the 2026 tax year, the deduction for gambling losses is reported to be capped at 90% of those losses, and still only up to your gambling winnings. It comes from section 70114 of the 2025 tax law, and an April 17, 2026 proposed rule from the IRS and Treasury states the same limit. So $10,000 of winnings and $10,000 of losses would allow a $9,000 deduction. Check IRS guidance. Read gambling loss deduction and gambling taxes.