Federal Betting Laws & Statutes

Welcome readers, to the hub of information about the federal laws surrounding sports betting in the U.S. This page designs to give you a complete understanding of the legal aspects of wagering on your favorite teams. Getting a full grasp of what you can and cannot do legally is a great first-step in wagering for real money.

This page will go through all of the federal laws that impact sports betting, and you will most likely come out the other end with more options than you knew you had before reading this. You will learn about laws with interesting acronyms like PASPA and UIGEA, as well as simpler-titled laws like the Wire Act. At the end of this article, we will review a legal online sportsbook for U.S. players that delivers some of the best action on the web, in our opinions.

Is Sports Betting Legal In The U.S.A.?

This is a great question that we get asked all the time. The simple answer is yes, there are many legal places to wager on sports in America, you just need to know where to find them. A big part of having a satisfying experience legal betting, US residents knowing which venues to use. We will help with this by dissecting the laws so you will know whether a sportsbook is breaking the rules or not.

Many people might not realize that there is a difference between state and federal laws. The state laws only regulate what is allowed in the state in question, while federal laws make rules for the entire country. Because of this, most states in the nation do not have sports betting laws because the federal regulations have countrywide statutes in place that affect all states. Let’s look at the federal laws and how they affect you.

Federal Laws Relating to Sports Betting

The Wire Act of 1961

In the 40’s and 50’s the gambling industry was rampant with crime and violence. Organized criminal organizations put bettor’s lives in danger and stole money, among other heinous acts. This unfortunate aspect of the business caused congress to pass the Wire Act in an attempt to battle the nefarious elements that were causing such chaos. The Act effectively put a stop to much of the criminal endeavors by illegalizing the transfer of gambling information between states by the use of wire communication devices. This law is outdated now, as the internet is basically one giant wire communication device.

Currently, the Wire Act only affects sports betting, and restricts the transfer of wagering information between states. This means that, if a person uses an online sportsbook in New Jersey, they must be living in New Jersey as well. This law does not affect the many great online sportsbooks that serve U.S. players however, because they operate outside of the U.S. These sites fall out of federal jurisdiction, meaning anybody from any state can use them, because they do not break the rules of the Wire Act.

The Unlawful Internet Gambling Enforcement Act of 2006

The Unlawful Internet Gambling Enforcement Act is another law that you will come across when reading about U.S. sports wagering sites. Entitled the Unlawful Internet Gambling Enforcement Act, this laws’ bark is worse than its bite. Many people believe that the UIGEA shouldn’t actually exist. It was hastily added to the SAFE Ports Act of 2006, an Act that covered ports security and had no other gambling clauses.

This law limits the types of funding methods available at online wagering sites. The majority of legal sports betting sites that accept U.S. players are located overseas, in places like Canada and the UK. The UIGEA doesn’t allow overseas wagering sites to transfer funds directly to a credit card account. This is not an impediment to you though, since these top-tier sites institute many fast and safe funding methods that make deposits and withdrawals simple. You can read much more about funding methods at our deposits and payouts pages.

The Professional and Amateur Sports Protection Act of 1992

The Wire Act delivered a devastating blow to the organized crime elements that were rampant in the gambling industry, but in 1992, there were still many nefarious organizations in the sports betting world. Congress decided to deem sports wagering a “national problem”, and followed up this claim with a harsh law entitled the Professional and Amateur Sports Protection Act. This new law saw to it that land-based sports betting was abolished from almost every state in the nation. The catch-22 about the PASPA is that it actually creates more criminal mischief in the forms of mafia-connected bookies and underground sports betting rings.

The PASPA only affects land-based sports betting, which is a great thing for the majority of American sports bettors, because the overseas online sportsbooks are safe and legal to use. PASPA only allows real-world sports wagering events in Nevada, Delaware, Montana, and Oregon. The pickings are even slimmer than that though, as only Nevada and (to a much lesser extent) Delaware allow regulated bookmaking. This basically means that, if you don’t live in Nevada, your best option for wagering real money on sports will be one of the many great online sportsbooks that are out there. Check out our full-length online sportsbook reviews for information about the best sites out there right now.

Federal Laws About Land Based Sports Betting

The three federal laws that we just covered make up the majority of sports betting regulations in America. In fact, only states that allow land-based sports betting (Nevada, Delaware, Montana, Oregon) have any state language that regards sports wagering. Almost no state in the nation mentions sports in their gambling laws. This is great for those of us who don’t live in Nevada, because it means we can use the online wagering sites without fear of legal action. Check out our state laws page to read more about the individual laws that exist in the few states that have them.

U.S. Sports Betting Age

Wagering age does vary state to state, and the general age will be 18 or 21. It is always wise to do and internet search for your state betting age before venturing online for a sports betting experience. Most sites will require you to be 18 or older, but if you are in a state where the law is 21, you should wait until you are that age to sign up. This is just a safeguard to avoid any legal trouble from the state. No one has ever been convicted for wagering online, but underage gambling can carry harsh consequences.

Legal Land-Based Sportsbooks

The PASPA only grants four states the opportunity to host land-based sports betting events. These states are Nevada, Delaware, Oregon, and Montana. Out of those four, only Nevada and Delaware actually have anything. Delaware is very limited, offering low-stakes parlays and straight wagers on very few sports. The Casino at Delaware Park is where you will find the majority of the action, but if you are looking for a full-fledged sportsbook, you will be disappointed. Nevada, the gambling capitol of the nation, does offer great sportsbooks where you can wager on every major team, as well as many minor leagues. If you are vacationing in, or live in Nevada, you will be able to find what you are looking for. For everyone else, the U.S. online sports betting sites are the places to go.

Legal Online Sportsbooks

As you can see, the federal laws allow a lot of leeway for online sports wagering venues. Most of these sites accept players from all 50 states, and they are where 90% of American sports fans go to play for real money. Many of these sites offer better odds, and more profitable features than the real-world counterparts. We look for many things in an online sportsbook, and we believe the site below meets these criteria and then some.