By TheNuts - May 08, 2025
Online Poker & Casino Legalization In The United States
Although nearly 40 states have legalized
sports betting, legalizing
internet casinos has been a longer process. Only a few jurisdictions allow internet casinos, and it may be several years before we witness the surge that legal sports betting experienced earlier this decade.
The history of real money online casinos in the US is complex, characterized by legal hurdles, technology improvements, and shifting public perception. This is an overview:
Early beginnings (1990s)
• In 1994, Antigua and Barbuda established the Free Trade & Processing Act, which authorized the issuing of licenses for internet casinos.
• InterCasino, the first internet casino, debuted in 1996.
• Planet Poker was the first online poker site, launched in 1998.
Growth and Legal Challenges (2000s)
• 2001: Online gambling gained significant popularity. By this point, there were hundreds of online casinos, poker rooms, and sports betting websites.
• In 2002, the U.S. Court of Appeals for the Fifth Circuit determined that the Federal Wire Act only outlawed online sports betting, not other types of gambling.
• In 2006, the Unlawful Internet gaming Enforcement Act (UIGEA) prohibited businesses from accepting online gaming payments knowingly. As a result, numerous operators exited the United States market.
Post-UIGEA Era and Black Friday (2010s)
• In 2011, the Department of Justice issued indictments against the founders of online poker firms PokerStars, Full Tilt Poker, and Absolute Poker, dubbed "Black Friday." This has a tremendous impact on the online poker market.
• In 2011, the Department of Justice clarified that the Federal Wire Act solely covers sports betting, allowing states to legalize other types of online gambling.
• In 2013, Delaware, Nevada, and New Jersey became the first states to authorize internet gambling. New Jersey's online casinos were extremely successful.
Recent Developments (2020s)
• In 2018, the Supreme Court declared in Murphy v. NCAA that the Professional and Amateur Sports Protection Act (PASPA) was unconstitutional, allowing states to legalize sports betting.
• In 2020-25, more than 30 states passed legislation to authorize internet casinos and sports betting.
Current Landscape
• Regulations for online gambling vary by state, creating a patchwork system. As of 2025, some states have legalized online gambling, such as casinos, poker, and sports betting, while others still restrict it. Technological developments, increased internet access, and shifting public views regarding gambling all contribute to the industry's expansion.
The future of online casinos in the United States will most likely involve ongoing legal and regulatory developments, with more states potentially moving toward licensing and regulation - though an online gaming rush is unlikely to occur anytime soon.