The Illegal Gambling Business Act, 18 U.S.C. § 1955, makes it a federal crime to run, finance, manage or own a gambling business that breaks state law, involves five or more people, and either runs for more than 30 days or takes $2,000 in a single day. It's aimed at the business, and it only applies where state law is broken first.
Section 1955 has three tests: a violation of state or local law, five or more people involved, and more than 30 days of operation or $2,000 gross revenue in any single day.
Penalties reach five years in prison plus a fine, and property used in the business, including money, can be forfeited.
The statute names people who conduct, finance, manage, supervise, direct or own the business; it doesn't list placing a bet among those acts.
Because the first test turns on state law, your state's statutes and regulator statements matter more to you than § 1955 does.
Citation
18 U.S.C. § 1955
Targets
People who run, finance or own the business
People needed
Five or more
Time or money test
Over 30 days, or $2,000 in one day
Maximum prison term
Five years
Forfeiture
Property used, including money
What the Illegal Gambling Business Act says
The Illegal Gambling Business Act is a short federal criminal statute at 18 U.S.C. § 1955. It makes it a crime to conduct, finance, manage, supervise, direct or own all or part of an "illegal gambling business". The current text is in the 2024 edition of 18 U.S.C. § 1955 on GovInfo (opens in a new tab).
What makes the law distinctive is that it doesn't define illegal gambling itself. It borrows that from the states. A business has to break the law of the state, or of the city or county, where it's conducted before federal law takes any interest. Then two size tests decide whether it's big enough to be a federal matter.
A business counts as an illegal gambling business under § 1955 only if it meets all three parts of the definition:
18 U.S.C. § 1955: the definition
Test
What the statute requires
In plain terms
1. State-law violation
It violates the law of the state or political subdivision where it is conducted
No state or local violation means no § 1955 case
2. Size
It involves five or more persons who conduct, finance, manage, supervise, direct or own it
A small private game with fewer than five organizers falls short
3. Duration or revenue
It has been in substantially continuous operation for more than 30 days, or has gross revenue of $2,000 in any single day
Either one is enough: a long-running operation, or one big day
The third test is an either-or. A business that runs for 31 days can meet it with small takings, while one that takes $2,000 on a single day can meet it in its first week.
Who the Illegal Gambling Business Act targets
The statute's verbs tell you who it's after: anyone who conducts, finances, manages, supervises, directs or owns all or part of the business. Placing a bet isn't on that list. The text is written for organizers and backers, not for customers.
That doesn't mean players are outside every law. State statutes can treat bettors directly, and they vary a lot. A few examples from state records:
South Carolina: S.C. Code § 16-19-40 covers unlawful games and betting, with players facing up to 30 days or $100 and operators up to 12 months and a $2,000 forfeiture.
Idaho:Idaho Code 18-3802 makes gambling a misdemeanor, and the state constitution bars any electronic imitation of casino gambling.
Utah: a third-party report says the criminal code treats internet gambling as a class B misdemeanor for players and a third-degree felony for providing it to someone in Utah.
Mississippi: the Gaming Commission's June 2025 public notice says players could face prosecution and forfeiture of deposits.
Penalties, forfeiture and exemptions under 18 U.S.C. § 1955
The penalty is a fine, up to five years in prison, or both. Property used in the violation, including money, may be forfeited to the United States. The forfeiture rule is the part that often hits hardest in practice, because it reaches the cash and equipment that keep the business running.
Two kinds of activity are carved out:
What § 1955 does and doesn't cover
Activity
Covered by § 1955?
Why
Bingo, lotteries or similar games run by a 501(c)(3) organization, where no receipts benefit private individuals beyond expense reimbursement
No
Express exemption
Savings promotion raffles
No
Express exemption
A gambling business that breaks state law, with five or more organizers and over 30 days or $2,000 in a day
Yes
Meets all three tests
A business licensed and lawful under state law
No
Fails the first test: no state-law violation
That last row is why state licensing matters. A state-licensed online casino in New Jersey or Pennsylvania operates lawfully under its state's law, so the first test isn't met. Our list of states with legal online casinos shows where that applies.
Why state law is the trigger: examples of state gambling statutes
Because § 1955 starts with a state-law violation, the state statutes are where the real action is. Here's what several states' laws and regulators say about online gambling, as recorded:
State laws that can supply the first test
State
Law or regulator position
Source type
Washington
RCW 9.46.240: knowingly transmitting or receiving gambling information over the internet is a class C felony
Official (statute)
Florida
Unauthorized casino-style games are criminal under Fla. Stat. 849.08 and 849.15
Official (Gaming Control Commission)
Illinois
Gaming Board says unlicensed internet casino and sports sites are illegal gambling; cites 720 ILCS 5/28-1(a)(12)
Official (Gaming Board)
Indiana
Internet gambling is illegal under IC 35-45-5; 2026's HEA 1052 lets prosecutors send notices to illegal internet operators
Official (Gaming Commission)
New Jersey
P.L. 2025, c.128 makes running an unregulated online gambling resort for New Jersey users a third-degree crime
Official (statute)
Oklahoma
SB 1589 amends 21 O.S. § 941 to prohibit online casino games, effective November 1, 2026; reported liability for promoters and affiliates
Does the Illegal Gambling Business Act apply to online casinos?
The statute doesn't mention the internet at all. It applies to any "gambling business" that meets the three tests, however it takes bets. The open question for an online operator is where the business is "conducted" for the state-law test, and § 1955's text doesn't spell that out.
Other federal laws are more specific. UIGEA defines unlawful internet gambling by reference to the law of the state where a bet is initiated, received or otherwise made, as set out in 31 U.S.C. § 5362 (opens in a new tab). And under the First Circuit's January 20, 2021 decision in New Hampshire Lottery Commission v. Rosen (opens in a new tab), the Wire Act reaches only bets and information on sporting events.
State regulators do cite § 1955 in practice. The Mississippi Gaming Commission's June 2025 public notice on cease-and-desist letters to illegal online sports wagering and casino sites lists 18 U.S.C. 1955 alongside UIGEA, the Wire Act and the state's own gaming and RICO laws. The Mississippi Gaming Commission FAQs (opens in a new tab) put it plainly: any casino game or sports wagering conducted online where money is paid and won is illegal in the state. See online casinos in Mississippi.
We don't know of any court decision on the facts we hold that applies § 1955 to a particular offshore casino, so we don't claim one. What's on record is that state regulators treat unlicensed offshore sites as illegal operators.
Illegal Gambling Business Act examples in dollars
These made-up scenarios show how the three tests interact. They assume the activity breaks the relevant state's law unless stated otherwise, and they're illustrations, not legal advice.
Applying the three tests
Scenario
5+ persons?
Over 30 days or $2,000 in a day?
Meets § 1955?
Three friends host a weekly card game for a year
No (3)
Yes (over 30 days)
No: fails the size test
Six organizers take $2,500 in sports bets on one Saturday
Yes (6)
Yes ($2,500 in a day)
Yes, if bookmaking breaks state law
Ten people run machines for 20 days; best day $1,800
Yes (10)
No (20 days; top day under $2,000)
No: fails the duration and revenue test
A 501(c)(3) runs bingo with proceeds going to the charity
Yes
Yes
No: express exemption
A state-licensed casino with 200 staff
Yes
Yes
No: no state-law violation
The fourth row turns on the charity exemption, which only applies when no receipts benefit private individuals beyond reimbursing expenses.
Illegal Gambling Business Act vs the Wire Act and UIGEA
The three main federal statutes are often lumped together, but they work in different ways:
Federal gambling statutes compared
Law
Who it targets
What triggers it
Penalty or effect
Illegal Gambling Business Act (18 U.S.C. § 1955)
People who conduct, finance, manage, supervise, direct or own the business
State-law violation, 5+ persons, over 30 days or $2,000 in a day
Fine, up to 5 years, forfeiture
Wire Act (18 U.S.C. § 1084)
Persons engaged in the business of betting or wagering
Interstate or foreign wire transmission of sports bets or betting information (First Circuit, 2021)
Fine, up to 2 years
UIGEA (31 U.S.C. §§ 5361-5367)
Gambling businesses accepting payments
Accepting credit, transfers, checks and similar payments for unlawful internet gambling
Payment restrictions; doesn't make betting itself illegal
None of the three makes placing a bet a federal crime for an individual player, based on their wording. All three lean on state law. Our Wire Act page and UIGEA explainer go deeper on each.
What the Illegal Gambling Business Act means for you as a player
For most readers, § 1955 matters indirectly. It's one of the reasons state and federal authorities treat unlicensed operators as illegal businesses, and it's part of why payment processors and banks are cautious with gambling transactions. It's not usually the law that decides your own position. Your state's law does that.
Before you deposit anywhere online, work through these steps:
Check whether your state licenses online casinos. If it does, licensed sites come with state protections offshore sites lack.
Read your state's gambling statute and regulator statements. Our state directory links each one.
Look up whether the casino has been named in a regulator action. The cease-and-desist letters guide explains how to read them.
Check the casino's license and operator. Offshore licenses, such as a Curaçao license, aren't US licenses.
Decide on a budget you can afford to lose, and set a deposit limit before you start.
Michigan Gaming Control Board issues 33 cease-and-desist letters, including to SlotoCash
Section 1955 itself has stayed stable through all of this; the current text appears in the 2024 edition of the US Code. What has changed is the state-law map it depends on. For the big picture, see is online gambling legal in the US.
SlotoCash and Decode offers: where they stand under US law
SlotoCash and Decode are offshore casinos. Neither is licensed or regulated by any US state, so there's no state regulator to complain to, no state protection of your balance, and the casino sets its own terms. Whether playing there is lawful depends on your state's law, so check it first.
SlotoCash doesn't name a license on its site; third-party sources report Curaçao, and it's widely reported as a Deckmedia N.V. brand. The Michigan Gaming Control Board named it among illegal offshore operators in its October 8, 2026 release on 33 cease-and-desist letters (opens in a new tab). Decode doesn't publish a license either, and third-party reviews list Curaçao.
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Both offers are built for slots, and table games are often excluded or weighted lower, so check the terms. The house edge applies while you wager, so expect to lose more often than you win. We earn a commission through our links, and partners are ranked in a commercial order. Read the SlotoCash legit check and Decode review first.
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SlotoCash and Decode are offshore casinos, not licensed by any US state. Read your state's law before you sign up.
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Published terms (casino terms): SlotoCash advertises up to $7,777 + 300 spins over five deposits on its own site. Eligible games: Slots, keno and scratch cards (progressive jackpots excluded).
Who runs it: License not shown on its site; reported as a Deckmedia N.V. brand (Curaçao). Regulator notes: Named in a Michigan Gaming Control Board cease-and-desist release, October 8, 2026.
21+ (18+ where allowed). New players. Min deposit $20 per bonus. Wagering 25x deposit + bonus. Max cashout: None stated. Withdrawal cap $5,000 / week. Terms source: casino terms. Terms apply. Offer checked October 28, 2026.
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Who runs it: License not shown on its site; third parties report Curaçao. Regulator notes: Third parties report it refuses players in MD, NJ, NY and WA.
21+ (18+ where allowed). New players. Min deposit $25 (reported). Wagering Varies by code (25x–35x reported). Max cashout: Varies by code. Withdrawal cap $2,500 / week (reported). Terms source: reported. Terms apply. Offer checked October 28, 2026.
These casinos are offshore operators. They are not licensed or regulated by any US state, and state consumer protections do not apply. Check the law in your state before you play. Terms marked “reported” come from third-party reviews; the terms shown at sign-up apply.
21+ (18+ where allowed). Every casino game has a built-in house edge, so over time you should expect to lose what you stake. Set a budget before you play and stop when it’s gone: responsible gambling tools and free help. Gambling problem? Call or text 1-800-MY-RESET (1-800-697-3738).
Frequently asked questions
What is the Illegal Gambling Business Act?
The Illegal Gambling Business Act is the federal statute at 18 U.S.C. § 1955. It makes it a crime to conduct, finance, manage, supervise, direct or own all or part of an illegal gambling business. A business qualifies only if it violates 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 one day. The penalty is a fine, up to five years in prison, or both. See the Wire Act for a related statute.
Can players be charged under the Illegal Gambling Business Act?
The statute's wording targets people who conduct, finance, manage, supervise, direct or own the business, and placing a bet isn't on that list. State law is a different matter. South Carolina's § 16-19-40 sets penalties for players, and Mississippi's Gaming Commission says players at illegal online sites could face prosecution and forfeiture of deposits. What applies to you depends on your state. For more, read is it illegal to play at offshore casinos.
What is the penalty under 18 U.S.C. § 1955?
The penalty is a fine, up to five years in prison, or both. Property used in the violation, including money, can also be forfeited to the United States. The forfeiture rule matters because it can reach the cash and equipment that keep a business running, not just the people behind it. Exemptions cover certain 501(c)(3) bingo and lottery games and savings promotion raffles. Compare that with the UIGEA payment rules, which work through banks rather than prison terms.
Does the Illegal Gambling Business Act apply to offshore online casinos?
It can apply to any gambling business that meets its three tests, and it doesn't exclude online operators. The harder question is where an online business is "conducted" for the state-law test, which the text doesn't spell out. Mississippi's Gaming Commission cites § 1955 in its June 2025 notice on illegal online casino and sports sites. We don't hold a court ruling applying it to a specific offshore casino. See offshore casinos legality for the wider picture.
Is a home poker game an illegal gambling business?
Usually not under federal law, because § 1955 needs five or more people conducting, financing, managing, supervising, directing or owning the business. It also needs a state-law violation and either more than 30 days of operation or $2,000 in gross revenue on a single day. A small private game run by a couple of friends is unlikely to meet all three tests, though your state's own gambling law may still apply. Check your state on our state directory.
What makes the Illegal Gambling Business Act different from the Wire Act?
The Illegal Gambling Business Act targets the people running a gambling business that breaks state law, with size tests and a five-year maximum. The Wire Act targets persons in the business of betting who use wire communications for interstate or foreign bets, and the First Circuit held in 2021 that it covers only sports betting. The Wire Act's maximum prison term is two years. Our Wire Act page explains the 2011 and 2018 Justice Department opinions too.
Are charity bingo nights exempt from § 1955?
Yes, if they meet the conditions. The statute exempts bingo, lotteries or similar games run by a 501(c)(3) organization, provided no part of the receipts benefits a private individual beyond reimbursing expenses. Savings promotion raffles are exempt too. Charity games can still be regulated by state law, so organizers should check their state's rules. Our tribal gaming page covers another category that federal law treats separately.
Has any partner casino been named by a US regulator?
Yes. The Michigan Gaming Control Board named Silver Oak and Planet 7 in cease-and-desist letters on April 9, 2025, Miami Club and Slot Madness on August 14, 2025, and SlotoCash on October 8, 2026, calling them illegal offshore operators. Michigan licenses its own online casinos, so offshore sites aren't authorized there. Our page on cease-and-desist letters explains what these letters do and don't mean for players.
Where can I get help with a gambling problem?
Call or text 1-800-MY-RESET (1-800-697-3738), the National Problem Gambling Helpline run by the National Council on Problem Gambling. It's free, confidential and available 24/7, with online chat on the NCPG website. Gamblers Anonymous runs meetings in person and online, and most states have their own programs. Our help and support page lists more options, including blocking software.
Does the $2,000 test in the Illegal Gambling Business Act mean profit or total bets?
It means gross revenue, so the money taken in counts, not what's left after payouts. Under 18 U.S.C. § 1955, a business that takes $2,000 in a single day meets the revenue test even if it pays most of that back to winners the same day. That's why a busy one-day event can qualify while a long-running small game qualifies only through the 30-day route instead. Both routes still need a state-law violation and five or more organizers. Our casino math basics guide explains how gross takings differ from what an operator keeps after paying winners.
Is an office March Madness pool an illegal gambling business under federal law?
Most office pools fall well short, because § 1955 needs all three tests at once: a state-law violation, five or more people running the business, and either more than 30 days of operation or $2,000 in gross revenue in one day. A pool run by one or two coworkers fails the size test, however many people enter. The bigger question is usually your state's own gambling statute, which can be stricter than federal law. Look up your state in our state directory, and see the sports betting laws page for how betting on games is treated.
Can the Illegal Gambling Business Act apply to sweepstakes casinos in California?
It could in principle, since § 1955 only needs a business that breaks state law and meets the size tests. California's AB 831, effective January 1, 2026 according to third-party reports, makes it illegal to knowingly engage in, promote or facilitate dual-currency sweepstakes casinos. That creates the kind of state-law violation the first test looks for. We don't hold any record of a federal § 1955 case against a sweepstakes operator, so we don't suggest one exists. See our sweepstakes casino bans tracker and the page on California gambling laws.
Does the Illegal Gambling Business Act affect licensed online casinos in Pennsylvania?
No, because a casino operating under a Pennsylvania license isn't breaking state law, so it fails the first of the three tests. The Pennsylvania Gaming Control Board's February 13, 2026 list shows 12 certificate holders running 25 authorized online casino brands. Those sites operate lawfully, which keeps them outside § 1955. An unlicensed offshore site serving Pennsylvania players is in a different position, because no state license covers it. Our Pennsylvania real money casinos page explains the licensed market, and the state regulators guide covers who oversees it.
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