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Bitcoin Gambling Laws: The United States Rules and Regulations

It is important to note that in the United States Bitcoin is considered an asset, not money, and taxed for purposes of capitol gains. Moreover, traditionally, gambling was only allowed in Nevada and parts of New Jersey. However, in the last two decades, gambling became a rite for Native American reservations. Today, things are a lot more liberal. Across the United States, gambling of all kinds is regulated by the respective state authorities leading to a mixed form of regulation across the 50 states. In effect, therefore, you’ll find certain types of gambling allowed in one state but totally outlawed in a neighboring state.

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Since 1934 Americans have had a form of lottery system in place and today the lotteries generate huge jackpots for the state and the federal authorities. With the established prospects of gaming with bitcoin, all rules are somehow out the door. For a long time for instance, you could not gamble on  bitcoin casino were not open to US citizens. And recently, the US Treasury Department has been working hard to ensure that it’s not being used to facilitate transactions that will violate US laws.

For example, only last year, FinCEN imposed a $110 million penalty against BTC-e, a crypto-currency exchange, for deliberately breaking US strict anti-money laundering laws.

At the same time, momentum has slowly been building in both the House of Representatives and Senate for a new act that would help address the risks associated with virtual currencies among investors as well as in the financial system.

Interestingly, some congressmen such as North Carolina’s Patrick McHenry have urged lawmakers not to be in a rush to introduce the proposed regulations suggesting they may not solve the problem of fraud in the virtual currency arena.

Notably, Bitcoin gambling is permitted but only partially and in some states. For most states, it is still a big NO and illegal. Some states, especially those who lack a gambling commission, are mute on the whole Online Bitcoin casinos matter.

This has opened the doors for some of the reputable Online Bitcoin gambling sites such as OneHash to make inroads into the lucrative US market.

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Gambling Regulation – State by State

State Regulator and the Law The law Comment
Alaska No specialized body

#Alaska’s Gaming Reform Act

#Alaska Administrative Code

Indian’s Gaming Regulatory Act

Casino games banned but some gaming permitted.

Players access foreign Bitcoin gambling casinos.

Alaska has repeatedly voted down the proposal to create the Alaska Gaming commission and to authorize gambling.
Alabama Alabama Racing Commission

#Alabama Criminal Code.

State prohibits casinos.

Most players rely on online websites.

State has very restrictive gaming regulations.
Arizona Arizona Department of Gaming/gambling

#Arizona Tribal-State Gaming Compacts.

Arizona casinos are quite liberal.

Mute on online gambling meaning players can bet on online casinos including Bitcoin.Casino.

Arizona Recognizes Blockchain Signatures.
Arkansas Arkansas racing commission

#Arkansas Gambling statute

Online casinos, are legal in Arkansas. No laws banning internet gaming. The pacts with other states key.
California California’s Gambling Control Commission

#California Gambling Law & Regulations.

#California Code of Regulation (CCR).

Some types of gambling outlawed.

It’s not a crime to gamble online.

Some internet gaming sites accept California players.

Changes have been mooted to provide internet gaming.

Colorado Colorado Ltd. Gaming Control Commission

#Colorado Limited Gaming Act

Charitable gambling allowed.

Internet gaming is illegal.

Mixed laws.
Connecticut Department of Consumer Protection

#Game of Chance-Act

#Connecticut General Statutes

State does not authorize any Internet gambling. It’s illegal to gamble even on legal online sites.
Delawere Division Gaming Enforcement (DGE)

#Delawere statutes

Delawere allows online casinos. Players can access Bitcoin games from myriad sites. Delawere was the first state to offer legal sports betting in the aftermath of US Supreme Court’s decision in May to permit sports wagering.
Florida Florida Gaming Commission

#Florida statutes

State Ok with offline casinos but skeptical about online casinos Current laws don’t indicate any penalties for online betting.
Georgia Georgia Lottery &

Georgia Investigation

Bureau

#Georgia Gambling Statutes

Allows controlled land-based gambling but cracks down on illegal operators.

Casino gaming is rare.

Most online casinos accept residents of Georgia.
Hawaii No specialized agency

#Hawaii gambling statutes

#Hawaii Penal Code

Betting mostly illegal. Most online casinos accept Hawaii players in their numbers.
Idaho Idaho gaming commission

#Indian Gaming & Self-Reliance Act

 A number of options permitted including Indian casinos and pull tabs. There’s no law banning online wagering websites.
Indiana Indiana Gaming Commission

# illegal gambling statute

Online gambling is illegal.

Players can play safely online on licensed sites.

Internet gambling can be lawful if licensed but that rarely happens.
Illinois Illinois Gaming Board

# Riverboat Gambling Act 

#Video Gaming Act 2009

Online Casinos outlawed.

Operators can be charged though not clear what happens to bettors.

Complicated gambling laws.
Iowa Department of Inspections & Appeals

#Iowa code

Law mute on online gambling.

casino-style games have to be registered.

State strict on many types of gaming
Kansas Kansas Racing & Gaming Commission

# Kansas criminal & nuisance statutes

iGaming seemingly outlawed.

State suspects that Residents engage in illegal online betting.

Some types of gambling are lawful but most are illegal.
Kentucky Department of Charitable Gaming-(DCG)

#Kentucky revised statutes

Online gambling illegal. State only interested in charitable gaming. Online Casinos accept players from Kentucky.
Louisiana Louisiana Gaming Control Board

(LGCB)

# Louisiana Gaming Control Act

Casinos allowed in some areas.

Internet gambling from legal websites not outlawed.

Unlicensed providers face harsh penalties.

Foreign registered gaming providers seemingly spared by the laws.
Maine Gambling Control Board

#Gambling Control Board Statutes

Law doesn’t seem to legalize online betting.

But lots of people bet online.

Two casinos licensed.
MaryLand State Lottery & Gaming Control Agency

# Code State Government Articles

Players can bet online on a site like Stake.Com since legislation doesn’t expressly prohibit this. State casinos operating in six counties.
Massachusetts Massachusetts Gaming Commission

# Internet Gambling laws (massachusetts)

 The law prohibits individuals from accepting any money for online gambling. Internet gaming not banned.

Changes have been mooted to provide internet gaming.

 Michigan Michigan Gaming Control Board(MGCB)

# Michigan Gaming Control & Revenue Act

State cautions residents to tread with care in online gaming. Michigan’s new online gambling bill seems to permit internet gambling.
Minnesota Minnesota Gambling Control Board(MGCB)

#Minnesota Gambling Control Board Statutes

Law doesn’t mention internet wagers. Thus one can bet safely. Minnesota law declares all “bets” illegal though each case is treated on merit.
Mississippi Mississippi Gaming Commission(MGC)

# Mississippi gaming regulations & Gaming Control Act

It’s illegal to place stakes on internet portals. Player can however access various sites. Authorities have always tried to authorize internet betting.
Missouri Missouri Gaming Commission

# Missouri Gaming statutes

Internet Gaming has been a grey area.

A high number of Bettors on internet platforms.

State expected to eventually regulate online gaming.
montana Montana gaming control division(MGCB)

# Montana gambling statutes

limited legal gambling. Internet betting not specifically banned. Laws a bit friendly.
Nebraska Nebraska gambling commission

# Nebraska gaming statutes

no forms of gambling permitted. Legality of online games depends on the jurisdiction of origin.
Nevada Nevada Gaming Commission

# Gaming Control Act

Online gambling  is legal as per the Nevada State Law. iGaming is legal so access to Casinos is unrestricted.
New Hampshire Gaming Regulatory & Oversight Authority

#New Hampshire gaming statutes

Offshore Online gaming not directly banned. It’s not known when and whether the state will permit Bitcoin gambling.
New Jersey Casino Control Commission

#New Jersey’s online gambling laws

New Jersey is a perfect ground for online players since allowing internet some years back. Internet Gaming is a big hit.
New Mexico new Mexico gaming board(NMGB)

# New Mexico gaming statutes

State bans internet casinos under federal laws. Unlawful Internet Gambling Act (enforcement) still in force.
New York NYS Gaming commission

#  New York Codes & Regulations

New York Constitution generally prohibits gambling though it doesn’t mention online games. Changes have been mooted to provide internet for gaming.
North Carolina North Carolina Gaming Commission

#North Carolina Statutes

Just a few gambling forms permissible. online gambling not specified as allowed. State doesn’t seem to be in a rush to legalize internet gambling.
North Dakota State Gaming Commission

#North Dakota gaming laws

Common types of betting allowed. Internet casinos not yet legal. Mixed legal framework.
Ohio Ohio Casino Control Commission (OCCC)

# Ohio casino control laws

Laws silent on online gambling. Bettors freely access their favorite online casinos. It’s not known if the state will expand the scope of the law any time soon.
Oklahoma Oklahoma gaming compliance unit

#Indian Gaming Regulatory Act(IGRA)

Indian casinos but not online casinos permitted. More selective laws.
Oregon Tribal Gaming Commission & Lottery gaming commission

#a number of statutes 

Directly prohibits internet gambling. Treats internet casinos as criminals.
Pennsylvania Pennsylvania Gaming Control Board

#Pennsylvania gaming legislations

Players can play legally on all the available internet sites. Pennsylvania was the American estate to allow online gambling.
Rhode Island Rhode Island Gaming & Control Commission # Rhode Island gambling statutes Most forms of wagering banned though land-based casinos are legal.

Bettors still risk on Online platforms.

Broad regulations to reduce ambiguity.
South Carolina Bingo licensing & enforcement unit

#South Carolina Code of Laws

Despite the risks, players play on off-shore casinos and neighboring states. Super strict laws on gambling.
South Dakota South Dakota’s Commission on gaming

#Assorted rules and laws

Online games expressly outlawed.

A good number of casinos however accept bettors from here.

Conservative stance.
Tennessee Tennessee gaming commission

#Tennessee non-profit gambling code

Games of chance permitted.

The rest invalidated.

Fantasy Sports Act (2016) proves that the state isn’t averse to changing its laws.
Utah Attorney General’s Office

#Utah criminal code

Outlaws basically everything. Radical anti-gambling stance
Vermont Vermont Lottery Commission

#Vermont lottery statutes

Online gambling favored though somehow outlawed. State runs its own lottery and a few in-state offline casinos.
Virginia Virginia’s Charitable Gaming Board, Virginia Lottery Board, and Virginia Racing Commission

#Code of Virginia

No casinos allowed.

Games turn to online casinos for fun.

Once caught, all gaming contracts voided.
Washington Washington State Gaming Commission(WSGC)

#State laws on Gaming

Wide range of brick and mortar betting. Harsh internet betting laws. Fairly flexible laws but for negative  online gaming sections.
West virginia west virginia’s  gaming control board

#West Virginia gaming code

No law barring internet gaming so it’s safe to bet. Laws not as harsh as in other states.
Wisconsin Office of Indian Games & Regulatory Compliance (OIGRC)

#Various gambling laws

Majority of betting activities are prohibited but for Tribal casinos. Legal framework determined by the Wisconsin/Tribal Compacts.
Wyoming Division of Gaming

#  statutes & administrative codes

Generally betting is illegal but for 3 tribal casinos.

online betting goes on unabated.

Despite the outlawing, residents lots of gambling happens here.

In Summary: Outlook for the United States and Bitcoin Gambling

Despite rigidity in the betting laws in some states, it’s expected that more regions will slowly start embracing online gaming in the future. Gaming raises revenues for states in addition to creating employment opportunities for residents. For instance, since the Supreme Court overturned the older Professional & Amateur Sports Protection law – in effect legalizing sports betting, some of the states have already removed previous restrictions. And who knows? Maybe this trend will set the pace for future amendments in Bitcoin gambling regulations, especially now that gamers are more assured of their data safety, thanks to the new GDPR regulations. There was evidence that there is hope when earlier this year bookies were taking bitcoin bets at the Kentucky Derby.

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