UIGEA, the Unlawful Internet Gambling Enforcement Act of 2006, bars gambling businesses from accepting cards, bank transfers, checks and similar payments for internet gambling that is already unlawful under federal or state law. It does not make gambling itself illegal and it does not target players, but it explains a lot about why US casino deposits get declined.
UIGEA (31 U.S.C. §§ 5361–5367) is a payments law aimed at gambling businesses, not at people who place bets.
It doesn't define any gambling as illegal; it relies on the federal or state law where the bet is made.
State-authorized intrastate betting, tribal gaming under IGRA and qualifying fantasy sports are excluded.
It is the legal background to card issuers blocking gambling transactions, but bank policies vary.
Full name
Unlawful Internet Gambling Enforcement Act of 2006
Citation
31 U.S.C. §§ 5361–5367
Targets
Businesses accepting payments for unlawful internet gambling
Makes betting a crime for players?
No
Who defines "unlawful"
Other federal law and the law of the state where the bet is made
What is UIGEA?
Congress passed UIGEA in 2006 to cut off the money flowing to unlawful online gambling. Instead of chasing offshore operators directly, it works through the financial system: it bars gambling businesses from accepting most common forms of payment for bets that are unlawful where they are made.
It is codified at 31 U.S.C. §§ 5361 to 5367, in the money and finance title of the US Code, which says a lot about its purpose. Unlike the Wire Act, which deals with how bets are transmitted, this law deals with how they are paid for. Our US gambling laws hub covers the other federal statutes.
What UIGEA bans: the four restricted payment types
The core rule is 31 U.S.C. § 5363 (opens in a new tab). A person "engaged in the business of betting or wagering" may not knowingly accept any of the following in connection with someone else's participation in unlawful internet gambling.
Payments UIGEA bars gambling businesses from accepting
Type in § 5363
Plain-English examples
(1) Credit or the proceeds of credit
Credit card deposits and other borrowed money
(2) Electronic fund transfers, or funds sent through a money transmitting business
Debit transfers, bank transfers and money transmitter payments
(3) Checks, drafts or similar instruments drawn through a financial institution
Personal checks and bank drafts
(4) Proceeds of other financial transactions designated by regulation
Anything Treasury and the Federal Reserve add by rule
The fourth category is filled in by the Treasury and Federal Reserve's implementing rules, known as Regulation GG. We have not been able to verify the current details of those rules from the official source, so we don't summarize them here.
How UIGEA defines unlawful internet gambling
This is the part most people miss. Under 31 U.S.C. § 5362(10) (opens in a new tab), unlawful internet gambling means placing, receiving or transmitting a bet at least partly over the internet where that bet is unlawful under any applicable federal or state law in the state where it is initiated, received or otherwise made.
So the act borrows its definition of "unlawful" from other laws. If a state licenses online casino games, as New Jersey, Pennsylvania, Michigan, West Virginia, Delaware, Connecticut and Rhode Island do, bets placed under that system are not unlawful. If a state's law forbids online gambling, as Washington's RCW 9.46.240 does, bets placed there can fall within the definition.
The statute also says the intermediate routing of data doesn't decide where a bet is made. A server abroad doesn't move the bet out of your state.
What UIGEA doesn't cover
The law carves out several activities, which is why state-licensed online casinos, tribal gaming and many fantasy contests operate alongside it.
Main UIGEA exclusions
Excluded activity
Condition
Intrastate wagers
Authorized by state law, with age and location verification
Games risking nothing of value beyond effort, internet access or free sponsor credits
Fantasy sports
Contests meeting the statute's conditions
The intrastate exclusion is why legal online casinos are built around one state at a time. See states with legal online casinos and our tribal gaming and daily fantasy sports laws pages. An exclusion from UIGEA doesn't make a product legal in your state; California's attorney general, for example, has said paid daily fantasy is prohibited there.
Does UIGEA make online gambling illegal for players?
No. The act doesn't itself make any form of gambling illegal, and its payment ban applies to businesses "engaged in the business of betting or wagering". A player who deposits isn't the person UIGEA regulates.
Regulators sometimes describe it more broadly. New Mexico's Gaming Control Board (opens in a new tab) says internet gambling is "expressly prohibited by Federal law", citing 31 U.S.C. § 5361, and Colorado's Division of Gaming says internet gambling is illegal under state and federal laws, citing UIGEA and the Wire Act. Read those as statements of each state's position, together with its own criminal code, rather than as a federal crime for players.
UIGEA is the legal background to US card issuers' gambling blocks. Card networks code gambling transactions as merchant category code 7995, and third-party industry sources report that some banks decline 7995 transactions, ask for extra checks or block them by default as a policy choice. Many issuers also treat credit card gambling transactions as cash advances, with the fees that come with them.
Some states go further for their own licensed market. Iowa's regulator says licensed operators may not accept credit cards, and Montana's Gambling Control Division says credit cards may not be used to gamble. Our casino card declines guide and why was my credit card declined at a casino? explain what happens at the checkout.
UIGEA and crypto casino deposits
Offshore casinos lean heavily on Bitcoin and other coins, partly because card deposits fail so often. Crypto changes the payment route, not the law in your state, and it brings its own risks.
The FTC warns crypto payments lack credit card legal protections and generally can't be reversed.
Justice Department opinion says UIGEA did not change the Wire Act's scope
2026
No federal bill to legalize or ban online casinos identified by the Congressional Research Service
What UIGEA means before you deposit: a checklist
Check whether your state licenses the product. If it does, use a licensed site, where the intrastate exclusion applies and a regulator stands behind it.
If your state doesn't license it, read what your state's law and regulator say about online gambling before going any further.
Expect card declines at offshore casinos and don't try to disguise a gambling payment.
If you consider crypto, understand that transfers generally can't be reversed and prices move.
Read the casino's withdrawal limits, fees and verification rules before your first deposit; our how to read casino terms guide shows what to look for.
Keep records of every deposit and win, because winnings are taxable whatever the site; see gambling taxes.
Offshore licenses from Curaçao, Anjouan or Costa Rica don't change any of this. A Curaçao license is issued under Curaçao law; it isn't a US state license, and UIGEA looks to the law of the state where the bet is made.
Royal Ace and Slot Madness: offers via our links
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Frequently asked questions
What does the acronym UIGEA stand for?
UIGEA stands for the Unlawful Internet Gambling Enforcement Act of 2006, codified at 31 U.S.C. §§ 5361 to 5367. It bars gambling businesses from knowingly accepting credit, electronic fund transfers, checks and other designated payments in connection with unlawful internet gambling. It sits in the money and finance title of the US Code because it works through payments. See the UIGEA glossary entry for a short definition and the US gambling laws hub for related statutes.
Does UIGEA make online gambling illegal for players?
No, not by itself. The act says unlawful internet gambling is a bet that is unlawful under the federal or state law that applies where it is made, so legality comes from other laws. Its own rule restricts what payments gambling businesses may accept. In states that license online casinos, bets under that system aren't unlawful. Read is online gambling legal in the US? for the state-by-state picture.
Can I be prosecuted under UIGEA as a player?
UIGEA's payment ban applies to a person engaged in the business of betting or wagering, so it targets operators rather than individual players. That doesn't settle the question everywhere, because state laws apply separately and some states treat online gambling by residents as an offense. We report what each state's law says instead of predicting enforcement. See can I get in trouble for playing online casinos?
Why does my bank decline casino deposits if UIGEA targets casinos?
Because many issuers block or scrutinize gambling transactions, which card networks code as MCC 7995. UIGEA bars gambling businesses from accepting card payments for unlawful internet gambling, and banks set their own policies against that background, so some decline every 7995 transaction. Some also treat credit card gambling as a cash advance with fees. Our card declines guide explains your options without breaking your card agreement.
Does UIGEA apply to crypto casinos?
UIGEA's list covers credit, electronic fund transfers, money transmitting businesses, checks and anything regulators designate, and we haven't verified how the implementing rules treat crypto. What is clear is that crypto doesn't change your state's law, and the FTC warns crypto payments generally can't be reversed. Read is Bitcoin safe for casinos? before using it at an offshore casino.
Are daily fantasy sports covered by UIGEA?
Fantasy sports contests that meet the statute's conditions are excluded from UIGEA's definition of a bet or wager. That is a federal carve-out only. States make their own decisions, and California's attorney general has said offering paid daily fantasy contests to players in California is prohibited even when the operator is outside the state. See our daily fantasy sports laws page for how states differ.
How is UIGEA different from the Wire Act?
The Wire Act, from 1961, bars betting businesses from using wire communications to send interstate bets, and courts now read it as covering sports betting only. UIGEA, from 2006, works on payments: it stops gambling businesses accepting cards, transfers and checks for unlawful internet gambling of any kind. Neither makes placing a bet a federal crime for players. Our Wire Act explainer covers the 2011 and 2018 opinions.
Does UIGEA stop state-licensed online casinos?
No. UIGEA excludes intrastate wagers authorized by state law, provided age and location are verified. That carve-out lets New Jersey, Pennsylvania, Michigan, West Virginia, Delaware, Connecticut and Rhode Island run licensed online casinos for players inside their borders. Tribal gaming authorized under IGRA has its own exclusion. See states with legal online casinos for each market.
Does UIGEA cover sweepstakes casino coins?
UIGEA doesn't name sweepstakes casinos, and whether their coins count as a "bet or wager" isn't settled by any source we cite. The act's definition excludes games where you risk nothing of value beyond your effort, internet access or free credits given by a sponsor, and sweepstakes operators build their model around free ways to get Sweeps Coins. States haven't waited for a federal answer: New Jersey, New York, California and seven other states have passed laws aimed at dual-currency sweepstakes casinos. No federal sweepstakes bill had been identified as of October 2026. See sweepstakes casino laws for the state rules.
Does UIGEA affect taxes on gambling winnings?
No, UIGEA is a payments law and says nothing about taxes; the tax rules come from the Internal Revenue Code and IRS guidance. Gambling winnings are taxable federal income whether you win at a state-licensed site or an offshore one. For 2026, payers file Form W-2G for slot, bingo and keno wins of $2,000 or more. From the 2026 tax year, losses are reported to be deductible only at 90% and only up to your winnings, so check IRS guidance before you file. Our gambling loss deduction page and do offshore casinos report to the IRS? answer cover the rest.
Does UIGEA stop casino withdrawals to my bank account?
UIGEA's payment ban, in 31 U.S.C. § 5363, is written around what a gambling business may accept from players in connection with unlawful internet gambling, not around payouts. What more often affects withdrawals in practice is the casino's own rules and your bank's policies. Offshore casinos set weekly caps, verification steps and fees in their terms, and banks may apply their own reviews to gambling-related transfers. If a withdrawal stalls, start with the casino's terms and its stated processing times. Read how to withdraw from an online casino and our guide to casino withdrawal limits.
How does UIGEA work in Michigan?
Michigan shows both sides of the law. Bets placed at Michigan's 15 authorized online casino platforms fall under UIGEA's exclusion for intrastate wagers authorized by state law with age and location checks, so they're not unlawful internet gambling. Offshore sites are a different matter: Michigan's Gaming Control Board says gambling is generally illegal unless state law authorizes it, which means bets at unlicensed sites can fall within UIGEA's definition. The board has sent repeated cease-and-desist letters, naming Slot Madness and Miami Club on August 14, 2025 and SlotoCash on October 8, 2026. See Michigan gambling laws for the state statute.
Does an offshore server take a bet outside UIGEA?
No, UIGEA says the intermediate routing of data doesn't determine where a bet is made. The act looks to the law of the state where the bet is initiated, received or otherwise made, under 31 U.S.C. § 5362(10), so a casino's servers in Curaçao or Costa Rica don't move your bet out of your state. The same logic is why a foreign license doesn't change your state's law. Hiding your location doesn't change it either, and casino terms can void winnings when a player gives false details. See our Curaçao license page and VPNs and online casinos guide.
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