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.
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.
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
|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 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||Charitable gambling allowed.||Mixed laws.|
|Connecticut||Department of Consumer Protection
#Game of Chance-Act
|State does not authorize any Internet gambling.||It’s illegal to gamble even on legal online sites.|
|Delawere||Division Gaming Enforcement (DGE)
|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||State Ok with offline casinos but skeptical about online casinos||Current laws don’t indicate any penalties for online betting.|
|Georgia||Georgia Lottery &
|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 Penal Code
|Betting mostly illegal.||Most online casinos accept Hawaii players in their numbers.|
|Idaho||Idaho gaming commission||A number of options permitted including Indian casinos and pull tabs.||There’s no law banning online wagering websites.|
|Indiana||Indiana Gaming Commission||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||Online Casinos outlawed.
Operators can be charged though not clear what happens to bettors.
|Complicated gambling laws.|
|Iowa||Department of Inspections & Appeals||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)||Online gambling illegal.||State only interested in charitable gaming. Online Casinos accept players from Kentucky.|
|Louisiana||Louisiana Gaming Control Board
|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||Law doesn’t seem to legalize online betting.
But lots of people bet online.
|Two casinos licensed.|
|MaryLand||State Lottery & Gaming Control Agency||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)||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)||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||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)||limited legal gambling. Internet betting not specifically banned.||Laws a bit friendly.|
|Nebraska||Nebraska gambling commission||no forms of gambling permitted.||Legality of online games depends on the jurisdiction of origin.|
|Nevada||Nevada Gaming Commission||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||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 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)||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||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||Common types of betting allowed. Internet casinos not yet legal.||Mixed legal framework.|
|Ohio||Ohio Casino Control Commission (OCCC)||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 casinos but not online casinos permitted.||More selective laws.|
|Oregon||Tribal Gaming Commission & Lottery gaming commission||Directly prohibits internet gambling.||Treats internet casinos as criminals.|
|Pennsylvania||Pennsylvania Gaming Control Board||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||Online games expressly outlawed.
A good number of casinos however accept bettors from here.
|Tennessee||Tennessee gaming commission||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||Outlaws basically everything.||Radical anti-gambling stance|
|Vermont||Vermont Lottery Commission||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||No casinos allowed.
Games turn to online casinos for fun.
|Once caught, all gaming contracts voided.|
|Washington||Washington State Gaming Commission(WSGC)||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||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)||Majority of betting activities are prohibited but for Tribal casinos.||Legal framework determined by the Wisconsin/Tribal Compacts.|
|Wyoming||Division of Gaming||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.