North America
iGaming regulation in the United States
US online gambling is regulated state by state; federal law (Wire Act, UIGEA) limits interstate wagering and payments to unlawful sites.
- Licensing model
- State-by-State
- Currency
- USD
Key points for operators and suppliers
- 1
No federal licence: licensing, taxes and B2B supplier approval are set by each state
- 2
UIGEA excludes intrastate wagers that are expressly authorised by state law and include age and location verification
- 3
Wire Act bars interstate transmission of sports bets by betting businesses, with an exception for transmissions between states where the bet is legal
- 4
Murphy v. NCAA (2018) struck down PASPA, leaving sports betting legalisation to the states
- 5
Federal wagering excise tax of 0.25% applies to state-authorised wagers (2% on unauthorised wagers)
What the United States asks of a licensee
The four questions that decide whether a market is worth entering.
There is no federal online gambling licence in the United States: each state decides whether to legalise and license online casino, poker or sports betting. Federal law sets the outer limits. The Wire Act (18 U.S.C. 1084) bars betting businesses from using wire communications for interstate bets on sporting events, and UIGEA (31 U.S.C. 5361-5367) bars them from accepting payments for unlawful Internet gambling, while exempting bets made entirely within one state that the state has authorised with age and location checks. In Murphy v. NCAA (2018) the Supreme Court struck down PASPA, so states may now authorise sports betting. Suppliers and operators need licences from each state they enter, as on the state pages.
Where the United States sets the rules locally
Licensing is decided at state level, so the detail lives on these pages rather than here.
Which verticals are legal in the United States
Status is the position for a licensed operator, not for offshore supply.
Daily Fantasy Sports
Not stated
UIGEA excludes fantasy contests meeting its conditions (prizes set in advance, skill-based outcomes); states may regulate further.
Esports Betting
Not stated
Determined by state law.
Horse Racing / Pool Betting
Not stated
Determined by state law.
Land-based Casino
Not stated
Determined by state law.
Online Bingo
Not stated
Determined by state law.
Online Casino
Not stated
State-authorised only: UIGEA excludes intrastate wagers expressly authorised by a state with age and location verification.
Online Lottery
Not stated
Determined by state law.
Online Poker
Not stated
State-authorised only, as for online casino under the UIGEA intrastate exclusion.
Online Sports Betting
Not stated
Legal only where a state authorises it; PASPA was struck down in Murphy v. NCAA (2018).
Retail Betting
Not stated
Determined by state law.
Skill Games
Not stated
Determined by state law.
Social / Sweepstakes Casino
Not stated
Determined by state law.
Gaming tax and regulatory charges
Everything a licensee pays in the United States on top of the licence fee.
| Charge | Rate | Charged on | Paid by |
|---|---|---|---|
| Federal wagering excise tax (26 U.S.C. 4401)Turnover / Stakes TaxOnline Sports Betting · Retail Betting · Online Lottery | 0.25%0.25% of the amount wagered for wagers authorised under the law of the state where accepted; 2% for other wagers | Amount of wager (sports wagers, wagering pools, for-profit lotteries per 26 U.S.C. 4421) | OperatorSource |
| Occupational tax on wagering (26 U.S.C. 4411)Licence / Regulatory FeeOnline Sports Betting · Retail Betting · Online Lottery | USD 50 per year for persons liable only for the 0.25% state-authorised wager tax; USD 500 per year otherwise | Per person per year | OperatorSource |
Compliance requirements by area5
What the regulator expects once a licence is granted.
Technical & Certification requirements
- Intrastate exclusion: age and location checksB2C Operator
- For a wager to fall outside "unlawful Internet gambling" as an intrastate bet, it must be made entirely within one state, be expressly authorised by that state, and state rules must include age and location verification and data security standards.Source
Payments requirements
- UIGEA payment banB2C Operator
- A betting business may not knowingly accept credit, electronic fund transfers, cheques or other financial instruments in connection with another person's unlawful Internet gambling.Source
Other requirements
- Fantasy sports exclusion conditionsB2C Operator
- UIGEA excludes fantasy or simulation sports contests where prizes are set in advance and not based on entrant numbers or fees, and outcomes reflect participants' skill and accumulated statistics from multiple real-world events.Source
- States may authorise sports bettingAll Licensees
- After Murphy v. NCAA, the federal PASPA ban on states authorising sports gambling no longer applies. Legality and licensing of sports betting are set by each state.Source
- Wire Act interstate sports betting banB2C Operator
- Betting businesses may not knowingly use wire facilities to transmit interstate or foreign bets or betting information on sporting events. Transmission between states or countries where the bet is legal is excepted.Up to 2 years imprisonment and/or fineSource
Recent regulatory changes
Newest first. Each entry links to the notice it came from.
- Guidance
CFTC staff advisory on prediction market incentive programmes
CFTC market oversight staff reminded designated contract markets of their obligations when self-certifying incentive programmes. The advisory addresses the growing number of filings for event-contract products.
- Tax Change
New Jersey raises online gaming tax to 19.75%
New Jersey, one of the largest state online markets, raised its tax on Internet gaming and online sports wagering gross revenue to 19.75%. The previous rates were 15% and 13%.
- Enforcement Policy
New Jersey regulator tells Kalshi to stop sports event contracts
The New Jersey DGE sent Kalshi a cease-and-desist letter saying its sports contracts were unauthorised sports wagering under state law. This shows a state-federal conflict over prediction markets.
- Consultation
CFTC proposes to bar gaming-related event contracts
The CFTC proposed amending Regulation 40.11 to treat event contracts involving gaming, including on athletic contests and political contests, as contrary to the public interest. Such contracts could then not be listed on CFTC-registered exchanges; comments ran to 9 July 2024.
United States licensing questions answered
Is online gambling legal in the United States?
It depends on the state. No federal online gambling licence exists. UIGEA leaves room for wagers made entirely within a state that the state has expressly authorised with age and location verification, so legality and licensing are set state by state.
What does UIGEA prohibit?
UIGEA bars betting businesses from knowingly accepting credit, electronic fund transfers, cheques or similar payments in connection with unlawful Internet gambling. Whether gambling is unlawful depends on the applicable federal or state law.
Does the Wire Act ban online sports betting?
The Wire Act makes it a crime for a betting business to use wire communications for interstate or foreign bets or betting information on sporting events. It does not cover transmissions between states or countries where the bet is legal, which is why state-licensed sportsbooks accept bets only from within the state.
What did Murphy v. NCAA decide?
In May 2018 the Supreme Court held that PASPA's ban on states authorising sports gambling violated the anticommandeering rule and that no part of PASPA could be severed. States may now legalise and license sports betting.
Do B2B suppliers need a federal licence?
No federal supplier licence exists. Game, platform and service suppliers must meet each state's licensing rules, for example New Jersey's casino service industry enterprise licence.
Is there a federal tax on sports wagers?
Yes. A federal excise tax of 0.25% applies to wagers authorised under the law of the state where they are accepted, and 2% to other wagers, plus an annual occupational tax of USD 50 (state-authorised) or USD 500.
Primary legislation and instruments
The statutes, regulations and technical standards this page is built from.
Murphy v. National Collegiate Athletic Assn., No. 16-476 (U.S. Supreme Court, 2018)Murphy v. NCAA
Decree · In Force · 14 May 2018
Held that PASPA's ban on states authorising sports gambling violates the anticommandeering rule and that no PASPA provision is severable. This left states free to legalise sports betting.
Unlawful Internet Gambling Enforcement Act of 2006 (31 U.S.C. 5361-5367)UIGEA
Act / Law · In Force · 13 Oct 2006
Prohibits betting businesses from accepting credit, electronic fund transfers, cheques or similar payments in connection with unlawful Internet gambling. It excludes state-authorised intrastate wagers, certain intratribal wagers and qualifying fantasy sports contests.
Transmission of wagering information; penalties (18 U.S.C. 1084)Wire Act
Act / Law · Amended · 13 Sept 1961
Makes it a federal crime for a betting business to knowingly use wire communications to transmit interstate or foreign bets or betting information on sporting events; allows transmission between states or countries where the bet is legal.
Internal Revenue Code, Chapter 35 - Taxes on Wagering (26 U.S.C. 4401-4424)Federal wagering excise tax
Act / Law · In Force
Imposes a federal excise tax on sports wagers, wagering pools and for-profit lotteries, plus an annual occupational tax on persons accepting wagers.
Prohibition on Funding of Unlawful Internet Gambling (Regulation GG), 12 CFR Part 233
Regulation / Ordinance · In Force
Federal Reserve regulation implementing UIGEA. It requires designated payment systems and their participants to have policies to identify and block restricted transactions.
Next in the United States
Compiled from official regulator and government sources, most recently on 26 Sept 2026. It is a starting point for commercial research, not legal advice — confirm the current position with the regulator or local counsel before you act on it.