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Is Online Sports Gambling Legal In The Us

Sports betting (retail and online) and online casinos are all legal and live. And in early November, PokerStars kicked off legal online poker in the state. West Virginia law allows for mobile sports betting as well. FanDuel Sportsbook and DraftKings Sportsbook launched in late summer 2019, and more could follow. The legal landscape surrounding sports betting in the United States changed drastically in May, 2018, when the Supreme Court concluded the Murphy vs. NCAA case by overturning the Professional and Amateur Sports Protection Act, commonly known as PASPA. States where online sports betting has been legalized. Below, we look at the top states leading the way in online sports betting in the US: New Jersey – As mentioned, New Jersey lawmakers are arguably responsible for the expansion of US gambling. Being the first state to welcome online gambling businesses, it has the largest market share of. Online sports betting is legal in the United States and in online casinos that operate in this country – view more here. But some states are considering legislation that would either further increase the legality, or further complicate matters. As of now, all 50 states have the legal ability to legalize and offer online gambling such as casinos, poker, bingo, and sports wagering. To date, only a handful of states have taken advantage of legal domestic online gambling. However, many states have pending bills to allow various forms of sports betting.

With the pandemic and subsequent lockdowns putting a strain on the economy, some local budgets are expecting severe cuts, due to lower public income from both taxes and fees. But, to avoid unpopular austerity measures, many are looking toward online gambling and digital entertainment as a way to subsidize regular public expenses.

Although the effects of these actions are yet to be seen, those States that have legalized online gambling and allow easier licensing for operators haven’t felt the economic slowdown as much.

Lower Economic Activity is Straining Local Budgets

In many ways, the current economic and health crisis is different compared to those we have experienced in the past. Many of the effects experts expected were mitigated because of the time allowed for preparation.

But, other issues have emerged. Local budgets, especially those relying on taxation from small businesses and renting, are taking a disproportionately bigger hit than experienced on the federal level.

On the other side, states and districts where items are shipped from or manufactured, as well as those who host a lot of online services providers, are experiencing a rise.

Following Good Examples

Even though more than a dozen US states explicitly allow online gambling, few have been proactive in their legislation like Nevada, Pennsylvania, or the State of New Jersey. You can play in online casino sites in New Jersey the same way as you would in a brick and mortar casino, and with many of the same games.

In these states, the losses caused by the pandemic have been mitigated to a significant degree by both domestic players, as well as those logging in from other states to bet and gamble on New Jersey websites.

It seems like Ohio and Michigan would be the first states to follow this example and try to secure a larger piece of the tax income for their budgets, with places like Kentucky following closely, pushed by public opinion in the state.

Current Legal Overview for Online Gambling

When it comes to federal legislation of the United States of America, there are no laws preventing online gambling. These issues are left to every state legislation individually to criminalize or legalize as they see fit.

And, when it comes to state-level legislation, the legal environment can be categorized into three distinct categories for gambling.

  • Gambling Legalized by Law
  • Some or All Gambling Illegal
  • Not Covered by Legislation

Additionally, some states might have laws against commercial gambling, such as California, but without the same restrictions imposed on online casinos and sports betting.

Explicitly Legal States

There are six US states where all types of gambling are perfectly legal. Delaware, Illinois, Iowa, New Jersey, Pennsylvania, and West Virginia have legalized all forms of betting and gambling, including commercial, online, as well as betting in Native American lands where they exist.

Additionally, California, New Hampshire, Nevada, and Rhode Island have legalized online gambling and allow for wagers to be taken by any type of online operator with representation inside the state.

The Federal Wire Act of 1961 prevents sports betting across state lines, but mentions nothing about betting online in another state. Thus, once sports betting diminished because of the pandemic, bettors used this fact to gamble in states where operators exist and are willing to take wagers.

Implicitly Legal Areas

Some states like Kentucky don’t explicitly allow for online gambling, but neither prevent it with any legislation. An operator opening their business in this state would be treated as a service, or as if the gamblers are coming through the door and not the wire, as commercial gambling is allowed.

But, because there is no clear perspective about what the future might hold, operators avoided investing in online gambling in Kentucky.

This will probably change in the upcoming months, as there is a proposal from May 25th, 2020 to clearly legalize online gambling in the state and bring in new businesses that will offer this service.

States Where Gambling is Illegal

There are only two US states where no type of gambling is allowed and the State will not issue any licenses for casinos, lottery games, sports betting, or online gambling operators. In Hawaii and Utah, local legislators have been clearly against any type of gambling, and are not planning to change this opinion.

But, with a sizable number of people digitally traveling out of state to gamble online, these states might prove to be an example of how an impractical approach might be devastating for the local economy.

Mass Liberalization of the Market is Immanent

Even with the pushback from a fraction of the citizens against gambling due to frights about social issues, it is probable that online gambling is not only here to stay but to thrive as well.

Even in the states where this practice is illegal, the offenders are hard to find, and the fines are excruciatingly hard to impose. Because of this, most experts agree that instead of fighting a losing battle, state governments will do better if legalizing this practice explicitly and regulating how it will be conducted.

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Gambling

Senate Bill 84 (SB 84), introduced in the Kansas State Legislature on January 27, 2021, passed the State Senate today, March 8, 2021. The bill would amend the Kansas Expanded Lottery Act (KELA) to allow retail and online sports wagering.

The sponsor of the bill is the Committee on Federal and State Affairs, which is chaired by State Sen. Larry Alley. While the Kansas House will now have to pass SB 84, Sen. Alley said: “I think they’ve hammered out most of the big decisions.”

Those words are a promising sign for smooth sailing ahead.

Governor Laura Kelly’s signature is also needed for approval, but she has been a proponent of legal online sports betting in Kansas since 2019. Amendments that include allocating tax revenue for addictive gambling initiatives—as well as a ban on greyhound racing wagers—have made Governor Kelly’s signature all but certain.

Kansas Sports Betting Finally Around The Corner

Last year, a popular Kansas sports betting bill lost its momentum due to the COVID-19 pandemic. The new bill, SB 83, was introduced in February 2021, and it has quickly made its way through the amendments and approval processes.

Barring any additional amendments, SB 84 would mean retail sportsbooks would be taxed at 8% of revenue and retail sportsbooks at 5.5%. An additional 2% of all sports wagers would go toward combating problem gambling, bringing the tax rates up to 10% and 7.5% for online and retail sports betting, respectively.

Operators will also be able to launch three online sports betting products each, known as “skins.” While some states greatly limit the number of possible online sportsbooks, SB 84 could open the door to many Kansas options.

The Kansas Lottery estimates that the state has the potential to generate over $3.5 million in tax revenue through legalized sports betting.

What Legal Sportsbooks Can You Expect?

Assuming the bill passes, the Kansas Lottery will determine rules and regulations and begin accepting applications. You can expect the biggest and best legal sports betting sites and apps to apply for market access.

But even before the application process, three brands are near-certain entrees to the legal Kansas sports betting market:

  • Barstool Sportsbook

Boyd Gaming, a company that partnered with FanDuel to offer online gaming in the US, owns Kansas Star Casino in Mulvane, which means FanDuel will be among the first legal operators in the state.

PointsBet partnered with Kansas Crossing Casino and Hotel in January 2020 to gain preemptive market access as well.

Penn National Gaming owns Barstool Sportsbook as well as Hollywood Casino in Kansas City. This gives Penn National faster market access to Kansas as well.

While Hollywood Casino has its own branded iGaming products in Pennsylvania, Penn National will most likely launch Barstool Sportsbook as its Kansas product.

Other online sportsbooks you can expect to launch in a legal Kansas market include DraftKings Sportsbook, BetRivers, William Hill, and BetMGM, all of which are legal in the nearby Midwest states of Illinois (minus BetMGM), Iowa, Indiana, and Michigan.