The current legal situation of online betting

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Online sports betting in the US was only legal in Nevada until the US Supreme Court lifted the ban three years ago. This landmark decision opened the market to more operators, with many states legalizing it. Ever since gambling went mainstream, the industry has been booming into the billions as more and more numbers are wagered on the act.

Before legalization, gambling was not classified as a sport, but the difference is slowly disappearing. The availability of the internet and technology has given rise to digital apps that simplify betting on mobile devices, threatening land-based casinos. These developments are only clear within a three-year window, which means online gambling will explode.

The current legal situation of online betting

Sports betting was only available in casinos to spice up the flavor of the venue. However, the real action and revenue came from slots, roulette, poker cards, keno and dice. Today, sports betting is on the rise and the market is expected to reach $39 billion in annual revenue over the next decade. Today, online sports betting is under $1 billion, with the rise attributed to digital betting after the COVID-19 pandemic.

Broadcasting betting ads used to be illegal, but now the lines are scrolling across TV screens during professional matches. Professionals (teams and leagues) have partnerships with gaming companies, and bettors can bet and win real money if the game predictions are correct.

Regulation of the online sports betting market

As sports betting takes shape legally, each state that has legalized it has regulations that govern the activities. Online offers (skins) in US states and sports betting laws have defined this one online only model, which means there are a few licenses or skins for those who wish to become legal sports betting operators in line.

The only exception is Tennessee, where gambling only occurs in old-school (land-based) casinos. There is only one online skin per brick-and-mortar license in some states, some allow two, and some allow more.

The Federal Wire Act requires that each state’s online activities be limited to geo-fenced operations within a state’s boundaries. In the United States, most casino companies are not well equipped with effective online sports betting experiences, hence the need for online operators.

Online Betting Considerations

For online sports betting entities, the main hurdles are licenses and contracts. However, there are other legal considerations to take into account after completing these steps. State gaming regulators need a full understanding of the parties involved in the entire online product. Platform providers and other suppliers with whom the licensed internet sports betting companies would enter into a contract must also be licensed.

Operators of online gambling platforms should be aware of bets; where and how they get them, as the Federal Wire Act prohibits the placement of interstate bets. Online betting entities must align their operations with specific state regulations. A customer must be present when making bets in a state as they are processed in the state where the entity is licensed.

Now that sports betting is legal in several US states, casinos are partnering with already reputable gaming companies to help online sports betting and taking wagers. Countries in the UK and many countries in the European Union have had online gambling for many years compared to the United States. The UK and EU have anti-money laundering laws and protocols, and those of the US are more heavy-duty anti-money laundering practices.

It would be helpful if these highly experienced international entities could involve US legal counsel to better understand the practices. A country like India is a big player in online gambling, and although it is illegal in most parts, some states have also allowed gambling with strict laws and regulations. Most gambling laws are pre-Internet laws prohibiting land-based gambling, commonly known as gambling dens.

Partner for success

The legalization of sports betting quickly changed the industry, and the internet is flooding with sports betting operations. Both casino operators and players strive for market share while maintaining established regulations. It is good business practice for operators to obtain proper licensing requirements and engage with other authorities like their local gambling attorney for proper operation.

They are also required to have strong anti-money laundering practices in place, keeping in mind that federal regulators are monitoring. The sports betting industry may seem too strict, but an honest legal partner can simplify and help navigate even the most complex regulations with best practices.


The current legal situation in online betting is that a country’s authorities heavily regulate the industry. It is essential to have strong statutes and regulations to regulate sports betting operations and hold all participants accountable. Industry best practices or codes of conduct simplify operations, but applying logical laws will make it healthier.

Story by Ervin Horváth @ Onlinesportfogadá

augusta free press
augusta free press


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