The Short Answer
The short answer to the question 'Are We Likely to See Further Legalization of Online Gambling in the US?' is a resounding yes. While it is unlikely that every US state will abandon prohibition, the pro-legalized gambling argument appears to be winning the case right now. States where gambling has been legalized are seeing much-needed revenue flowing in. In addition, as the UK and European models have shown, a well-regulated industry protects players and creates a safe gambling environment. Gambling happens, whether permitted or not. Therefore, many legislators believe that it should be done as safely as possible and with maximum benefit to the state coffers.
The Status Quo
Here is a summary for anyone unfamiliar with the status of gambling and online gambling in the USA. The USA is a walking contradiction when it comes to gambling regulation. On the one hand, it is home to the self-proclaimed world capital of gambling – Las Vegas. However, on the other hand, it has some of the most restrictive gambling laws imaginable. The rise of online gambling has made legislators reassess the laws surrounding wagering in their state. This means that every state applies different regulations to the online gambling market. While this might appear confusing, fortunately for players, Time2play has aggregated a list of the best sites for gamblers looking to wager with real money.
Why Regulation Matters.
When online gambling took off, offshore operators set up to offer American residents the chance to place a bet on the internet. These online casinos and sports betting shops might have had the appearance of being secure, but it was easy for punters to be ripped off. Moreover, as the offshore platforms were unregulated, there was nowhere for their customers to go to complain if and when things went wrong.
How We Got Here
The laws around what is and is not legal vary from state to state and can be pretty confusing. Most people see the 2018 Supreme Court ruling as the decisive point in the USA's explosion of the online gambling industry. The Supreme Court ruled that a nationwide ban on sports betting was illegal and that each state should be free to set its own rules. However, the 1961 Wire Act still meant that using interstate telephone lines to operate a gambling or wagering business was illegal. So while the way was opened up for online sports betting, people still needed to be physically located in the state where they were betting.
When looking at the history of online gambling in the USA, it is easy to overlook the fact that the first online casinos and poker rooms date back way before 2018. Delaware was the first state to legalize online gambling in 2012. However, their population was too small to create a large enough market to make them a viable market.
Delaware, New Jersey, and Nevada
It is a well-known fact that early adopters of technology often have to suffer bugs and glitches. Delaware had similar problems. It might have been the first to legislate, but this meant that it had to start from scratch and create the legal framework that other states would then be able to replicate. The thing that took them the longest was the age verification to prove that a player was over 21. In addition, they had to create the Delaware Gaming Competitiveness Act that allowed people in other states to compete against their players and create a viable market. Finally, in 2013 an interstate compact between Delaware, New Jersey, and Nevada saw the launch of the first legal online poker sites.
Gambling in The USA
The gambling landscape in the USA has dramatically changed since the prohibition of the 19th Century. Gambling of some form or other is now permitted everywhere, apart from Utah and Hawaii. Utah's anti-gambling stance is part of the state's constitution. Changes to existing policy would be a monumental departure from the current moral stance that opposes any gambling form.
On the other hand, California is known as one of the most progressive US states, but online gambling is illegal here. The main reason for this is probably because revenues from land-based casinos in cities are so important to the first nation people. This argument is being challenged as a city like Los Angeles already has other casinos. However, later this year, there will be a vote on whether sports betting should be legalized, which could bring about significant changes. In addition, California has online social casinos; any relaxation in laws will probably have a knock-on effect across the industry.
What is Proposed For California?
The ballot regarding sports betting will take place in November. There are two alternative proposals. One has already been approved and is a tribal-only proposal. This proposal would allow retail sports wagering to be undertaken at the state's tribal casinos and horseracing tracks.
The alternative proposal is, unsurprisingly, backed by some of the gambling industry's biggest commercial operators. This would pave the way for online sports betting in California and would bring substantial revenues to the state. The proposal is for gambling businesses licensed in other states to apply for a Californian online license. They would be taxed 10% of their gross gambling revenue and have to pay a $100 million application fee.