The question I get most from friends who find out that I play online casino games: "Isn't that illegal?" I suppose all the bluster of anti-online gambling voices in government was enough to convince a good chunk of the population that placing bets online in America is illegal. The truth is, as long as Internet gambling is legal in your state, you have nothing to fear.
I opened my first online gambling account just a couple of years ago, in 2010, well after much of the US market shrank away due to certain actions on the part of our government. You see, in 2006, a small group of conservative politicians tacked a bill called the Unlawful Internet Gambling Enforcement Act onto an anti-terrorism bill. This was their only way of getting this legislative language passed, and it worked. With a scary name like that, it's no wonder some people think online casino play isn't legal.
The Truth About the UIGEA
All that legislation in 2006 did was make it illegal for American financial institutions to do most forms of business with what the government calls "known gambling sites." What does that mean for Americans who want to play casino games? It's a little bit harder to fund your online gambling account, but it isn't illegal to play casino games, based solely on the language of the UIGEA.
The immediate effect of this law was that a ton of gambling websites that used to accept Americans decided to stop doing business with them. Though a few sites have come back to the market, the US online gambling industry is much smaller than it was before 2006. But sites still exist catering to American wagers, even though the UIGEA makes it hard for us to add and withdraw our funds.
What about the Federal Wire Act?
The only other applicable piece of legislation concerning online gambling in America is the Federal Wire Act, a 1960s-era law that made it illegal to place interstate bets "by wire." Some people concluded that the vague "by wire" language meant that Internet gambling is illegal. Even though casinos have been doing business with the US market for nearly twenty years, some people still think the Wire Act applies to contemporary online casino play.
It doesn't. In December of 2011, the US Justice Department clarified that law, saying that it applies to sports betting only, paving the way for states to regulate online poker and casino play, as well as online lotto sales. The Wire Act simply does not apply to slots or blackjack play, and as long as you're not betting on the outcome of sporting events, you're not breaking this law.
State Law & Online Gambling in the US
Eight American states have laws on the books against online gambling. If you live in Illinois, Indiana, Louisiana, Montana, Oregon, South Dakota, Washington, or Wisconsin, your online casino play might be breaking state law. Fortunately, no one has ever been arrested or charged under these state laws; still, you should check to make sure that your state doesn't have any online gaming law in its penal code, just to be sure that your online casino play is legal.