Legal online casinos offer a real-money gambling experience combined with the convenience of mobile gaming. Many of the games seen on the floor of a land-based casino can be found at legal online casinos in the US.

New Jerseystands as the undisputed US leader in online casino gaming. Players in the Garden State enjoy access to some of the world’s best mobile casinos. The platforms include Golden Nugget Casino, DraftKings Casino, Caesars Online Casino, and many others.

Online casinos offer gambling enthusiasts a great platform where they can enjoy different types of internet games. These can include slots, video poker, specialty games, and variations of table & card games, amongst others. Players usually have several options to choose from when enjoying their favorite titles. One of the most common ones is to decide whether to play live casino. Best Online Gambling Sites Compared 2021 - We've tested 100's of sites to help you find the top real money online casinos, gambling & betting options.

Delaware, West Virginia,Pennsylvania andMichiganjoin New Jersey as states offering legal mobile casinos. Michigan is the latest state to launch online casinos, doing so on Jan. 22, 2021. Learn more in our Michigan Online Gambling Guide.

List Of States With Legal Online Casinos

Not in one of the above states? You can play at Sweepstakes Online Casinos for real cash prizes.

You can also view our complete online casino guides toNew Jersey Online Casinos andPennsylvania Online Casinosfor more information.

The Best Online Casino Sites In The US

DraftKings Casino

DraftKings’ continued expansion into the US legal gambling industry includes the DraftKings Casino platform. DraftKings Casino debuted in New Jersey in December 2018, marking the company’s first foray into online casino gaming.

True to the brand, DraftKings Casino offers unique sports-themed versions of blackjack and roulette among its selection of games.

New players at DraftKings Casino can unlock a 100% deposit match bonus up to $1,500 plus $10 in free credit. The bonus requires a 10x playthrough.

DraftKings Casino operates in New Jersey as a licensed partner of Resorts Digital Gaming. A Pennsylvania platform launched in May 2020, partnered with Hollywood Casino. They launched in West Virginia with Hollywood Casino at Charles Town Races. In Michigan, DraftKings Casino operates as a license partner of Bay Mills Casino and Resort.

Check out our complete DraftKings Casino Review for more details and the latest promo offers.

FanDuel Casino

Mirroring the efforts of DraftKings, FanDuel’s US legal gambling offerings include an online casino platform. FanDuel Casino first launched in Pennsylvania in January 2020.

FanDuel Casino operates in Pennsylvania in partnership with Valley Forge Casino Resort. Immediately upon its debut, FanDuel Casino established itself as one of Pennsylvania’s most popular online casinos. FanDuel also launched in Michigan in January 2021.

Table games at FanDuel Casino include blackjack and multiple versions of roulette. These games represent some of the platform’s most popular game choices.

New players are eligible for a $200 risk-free day upon registration.

FanDuel Casino also operates in New Jersey but does so under the name of Betfair Casino. They will be launching in West Virginia sometime soon.

BetMGM Casino

Formerly known as playMGM, the new and improved BetMGM platform debuted as a project from Roar Digital. Roar Digital operates as a joint company between MGM Resorts and GVC Holdings.

BetMGM online casino debuted in New Jersey in September 2019. The platform operates under the license of Borgata Hotel Casino, an MGM-owned retail property in Atlantic City.

Since then, BetMGM launched in Pennsylvania as well as West Virginia and Michigan.

BetMGM Casino has one of the best reputations when it comes to its selection and variety of online slots and table games. In NJ, BetMGM, along with other casino skins under the Borgata license, hosts the biggest progressive slot jackpot among US online casinos. Known as “The Big One,” the jackpot links to a network of slots with jackpots that can reach over the $3 million mark.

Sign-up bonuses at BetMGM include a 100% deposit match bonus up to $1,000.

BetRivers Casino

BetRivers might not have the same brand recognition as other online casinos, but they are quickly expanding across the US. The BetRivers Sportsbook app is live in seven states already. They are often one of the first apps to launch in states legalizing sports betting.

BetRivers Casino launched in Michigan in January 2021. BetRivers is live in Pennsylvania in partnership with SugarHouse Casino. BetRivers Casino operates in New Jersey under the SugarHouse brand.

Unibet Casino

The Unibet brand established itself as a powerhouse in the international online gambling industry before moving into the US market. Unibet Casino launched in New Jersey in June 2019, as a license partner of Hard Rock Atlantic City.

Unibet launched a second online casino for Pennsylvania players in November 2019. Unibet Casino operates under the license of Mohegan Sun Pocono for the Pennsylvania platform.

The game selection at Unibet Casino includes progressiveslots, videopoker, and table games. Games like Micro Stakes Blackjack offer action for even the most conservative of bankrolls.

New players at Unibet Casino can unlock a 100% deposit match bonus up to $500, as well as a $10 sign-up bonus.

Caesars Online Casino

Caesars Atlantic City stands as one of the most iconic properties on the East Coast. Caesars Online Casino offers an online gaming experience that lives up to the Caesars name.

Caesars Online Casino launched in New Jersey in 2013, operating under the Caesars Interactive license. The online platform offers one of the most robust slot selections available at any legal US online casino.

New players at Caesars Casino can take advantage of a $25 free sign-up bonus, as well as a 100% deposit match bonus up to $300.

A Pennsylvania version of Caesars Online Casino launched in April 2020, under the Harrah’s Philadelphia interactive gaming license. In Pennsylvania, Ceasars offers a 100% deposit match bonus up to $500.

PokerStars Casino

Poker players know the PokerStars brand as the world’s biggest online poker site.

PokerStars’ US operations include hybrid online casino and poker sites in both Pennsylvania and New Jersey. PokerStars Casino operates as a license partner of Mount Airy Casino Resort in Pennsylvania, and Resorts Digital in New Jersey. In January 2021, Stars Casino by PokerStars also launched in Michigan.

The PokerStars Casino side of these platforms offers table games, video poker, and popular progressive jackpot slots like Divine Fortune.

Bonus offers for new players at PokerStars Casino include a $30 free play bonus on deposits of $20 or more.

Golden Nugget Casino

Golden Nugget’s online casino platform stands as the gold standard in the US mobile casino market. Golden Nugget Atlantic City launched the site in New Jersey in 2013.

The Golden Nugget mobile platform has stood as one of the most popular online casinos in the US for most of its existence.

Golden Nugget online casino offers an unparalleled game menu. The platform presents New Jersey players with more slots, video poker, and overall game options of any US legal online casino.

Sign-up offers at Golden Nugget online casino include a 100% deposit match bonus up to $1,000, and a $20 no-deposit bonus.

Best Online Casino Gambling Site

Golden Nugget online casino debuted a Michigan platform in January 2021. The brand will eventually expand into Pennsylvania and West Virginia as well.

Tropicana Online Casino

One of the first online casinos to launch in New Jersey, Tropicana Online Casino debuted in the Garden State in November 2013. The platform is licensed to its parent property, Tropicana Atlantic City.

Games available at Tropicana Online Casino include many of the same selections enjoyed by players at Tropicana Atlantic City.

Tropicana Online Casino offers a unique “community jackpot” promotion. Anyone playing on the site at the time the jackpot hits could be eligible for a share of the prize.

Bonus offers at Tropicana Online Casino include a $25 sign-up bonus and a $100 rebate on losses for new players.

What Kind Of Bonuses Are Generally Available At Legal Online Casinos?

Risk-Free Day And Loss Rebate Bonuses

Several legal online casinos offer new players the chance at a rebate on losses for a short period after sign-up.

FanDuel Casino, for instance, presents new players with a $200 risk-free day offer. After making an initial deposit, players unlock a rebate on up to $200 in losses incurred during the first 24 hours playing on the site.

For example, a player signing up for an account at FanDuel Casino can deposit $200, and wager the $200 at the casino. If the player’s account is at $0 after a 24-hour period, FanDeul Casino will award a rebate of up to $200.

Best Online Casino Sites

The rebate only applies to net losses on the first deposit. If a player deposits $200 and has a $150 balance after 24 hours, the rebate is $50. If the player’s balance is higher than $200 after the 24-hour period, no rebate applies.

Deposit Match Bonuses

At many online casinos, a player’s first deposit makes them eligible for bonus money matching a certain percentage of the deposit. These deposit match percentages can equal anywhere from 20% to 100% of the first deposit.

BetMGM offers a 100% deposit match bonus, up to $1,000. Using this offer, new players can make an initial deposit and earn 100% of the deposit in bonus money, up to $1,000.

Most deposit match bonuses require a certain amount of playthrough, or money wagered, to unlock the bonus. Playthrough requirements generally range from 20x to 30x the initial deposit amount.

No-Deposit Bonuses

Some online casino platforms award free betting credits just for registering for a new account.

Golden Nugget Casino is one platform offering such a bonus. New players start with $10 in free bets just for signing up with the site.

Types Of Games Available At Online Casinos In The US

Slots And Video Poker

Much like their land-based counterparts, virtually all online casinos present a game selection menu dominated byslots.

Many of the same slots enjoyed on the floor of retail casinos can be found at legal online casinos. These include five-reel multiway win slots and classic three-reel slots.

New Jersey online casinoslike Golden Nugget Casino, Mohegan Sun Online Casino, and SugarHouse Casino offer hundreds of different slot variants. The library of slots at legal online casinos expands regularly.

Many different versions of video poker can be played at legal online casinos as well.

Progressive Jackpot Slots

Progressive jackpot slots offer some of the biggest potential payouts found at legal online casinos. These grand prizes can sometimes reach into seven-figure totals.

The Big One

The Big One network of slots offers the biggest progressive jackpot found at legal online casinos in the US. This series of slots, found at Borgata, BetMGM, and PartyCasino in New Jersey, all link to a progressive jackpot that sometimes goes over $3 million.

Divine Fortune

Divine Fortune finds a home at many legal online casinos in the US and offers a grand jackpot that can reach above six figures.

Resorts Casino, Mohegan Sun, Caesars Casino Online, and many other platforms host the Divine Fortune progressive slot.

Table Games

Players looking for table games can find plenty of action at legal online casino sites. Blackjack, roulette, craps, baccarat, and Three Card Poker represent just some of the table games available on mobile casino platforms.

Live Dealer Games

Live dealer games offer the best of mobile gaming, combined with the live casino experience. These games allow online players to interact with a real-life dealer though live stream.

Human dealers oversee live dealer games from a physical table at a secure studio location. Live dealer versions of blackjack, roulette, baccarat, and other casino games can be found at many mobile casinos.

Sweepstakes Casino Sites

Players in New Jersey, Pennsylvania, West Virginia, Delaware, and Michigan enjoy access to state-regulated online casinos.

In other US states, sweepstakes casino platforms present the best opportunity for players to enjoy the online casino experience. Sweepstakes sites like Chumba Casino, LuckyLand Slots, and Funzpoints legally operate in virtually every US state except Washington.

See our comprehensiveGuide To Sweepstakes Casinos In The US.

How Sweepstakes Casinos Work

Platforms like Chumba Casino operate legally as sweepstakes sites. Sweepstakes games at Chumba Casino offer prizes in the form of “Sweeps Coins,” which can be redeemed for cash prizes.

This business model allows the games at Chumba Casino to legally operate as mini-sweepstakes games. Direct real-money deposits aren’t permitted at sweepstakes casino sites. But players can acquire and purchase Sweeps Coins in various other ways.

Chumba Casino operates play money games, using “Gold Coins” as currency, in addition to the Sweeps Coins Games.

Gold Coins packages are available for purchase and with some Gold Coins packages Chumba Casino awards an amount of Sweeps Coins as a gift. The Sweeps Coins can then be used in the sweepstakes casino games, and later redeemed for cash prizes.

Sweeps Coins can also be obtained for free, through mail-in and social media offers.

Sweepstakes casinos operate legally in 49 US states and Washington DC. Only Washington state outlaws sweepstakes casinos.

How Can I Gamble Online In The US?

iOS Mobile Devices

Nearly all legal US online casinos can be downloaded as mobile apps for iOS devices. These apps optimize the playing experience for the iOS device. They also offer the convenience of playing from anywhere within the borders of a legal online casino state.

Owners of an iOS device can find mobile casino apps at the App Store. Players located in New Jersey, Pennsylvania, and other states with legal online casinos can find all of these free apps available in those states.

Android Devices

Most legal online casinos are available as Android apps as well. Like their iOS counterparts, Android apps are free to download and present a gaming experience optimized for mobile devices.

Android apps can only be downloaded directly from an online casino website, as the Google Play store doesn’t allow for the download of real-money casino apps.

Desktop

The simplest way to access and play at a legal online casino is directly through a desktop browser. Playing on a desktop device doesn’t offer quite the same mobility as iOS or Android apps. But it allows players to enjoy full access to online casinos with no download required

Registering For An Account At A Legal Online Casino

On mobile devices and desktop browsers, new players can sign up at an online casino through a quick process.

At DraftKings Casino, for example, new players can click on the “Sign Up” button to start the registration process. A menu then appears where players can choose a username and provide a valid email address.

The next step requires documentation of first and last name, date of birth, residential address, and last four digits of a social security number.

After submitting this information, DraftKings Casino sends a mobile verification link through text message or email. Once that link is verified, players must download geolocation software that allows DraftKings Casino to verify that the player is within the borders of a state in which it legally operates.

With personal details and geolocation verified, new players can then navigate to the cashier, deposit funds, and begin playing.

What Deposit And Cashout Options Are Available At Legal Online Casinos?

ACH/eCheck

Virtually all legal online gambling sites accept ACH/eCheck as a method for both deposits and withdrawals.

When used for deposits, this method drafts an electronic check (eCheck) from a player’s bank account, and pushes the check through an Automatic Clearing House (ACH). This clearing process happens instantaneously. If approved, the funds immediately become available for play at the online casino.

ACH/eCheck deposits are occasionally stopped by the issuing bank. They go through successfully around 80 percent of the time.

Debit/Credit Cards

Like ACH/eCheck, most online casinos accept debit and credit cards as a deposit method. This method can’t be used for withdrawals, however.

Debit and credit card deposits come with one of the highest rejection rates among all deposit options, but when successful immediately make funds available for play. Credit card deposits can sometimes carry cash advance fees from the issuing bank.

PayPal

Many mobile casino platforms accept PayPal as a method for both deposits and withdrawals. The deposit process takes a few extra steps compared to other methods. But PayPal deposits offer a nearly 100% acceptance rate.

Players with a valid US PayPal account can use this method at numerous legal online gambling sites.

Prepaid Cards

Prepaid cards are issued directly by an online casino, and function as a gift card that allows funds to be loaded on a player’s balance.

With this method, players can load a prepaid card with funds using ACH/eCheck, debit card, PayPal, and various other ways.

Casino Cage Deposit

Deposits and withdrawals can also be made directly at the casino cage of a retail property that operates an online casino.

At Golden Nugget Casino, for example, deposits and withdrawals for the online casino could be made by visiting the land-based Golden Nugget Atlantic City property.

The History Of Online Casinos In The US

US laws allow states to offer legal online casino gambling on an individual basis. Delaware became the first state to legalize online casinos in 2012, followed by New Jersey in 2013.

Online casinos debuted in both states in November 2013. Since then, New Jersey’s online casino industry developed into a robust market, with more than 20 different platforms available.

Pennsylvania became the next state to legalize online casinos, doing so in October 2017. Mobile casino platforms started to launch in the state in July 2019. West Virginia followed suit, legalizing online casinos in 2019.

The first online casino launched in West Virginia in the summer of 2020. Michigan became the latest state to debut online casinos in January 2021.

Legal online casinos operate under the license of retail casinos. Gaming regulation agencies like thePennsylvania Gaming Control Board(PGCB) and theNew Jersey Division of Gaming Enforcement(DGE) oversee online casinos in their respective states. In West Virginia, the West Virginia Lottery Commission regulates all iGaming.

Players located within state borders in each legal online casino jurisdiction can access mobile casinos in those states.

Michigan was the latest state to join the US mobile casino market. Michigan passed online gambling legislation in December 2019 and the first online casino apps launched on January 22, 2021.

Legal Online Gambling Sites Versus Illegal Online Gambling Sites

State-regulated online casinos are owned by land-based properties, using licensing agreements with technology partners.

These partnerships allow for trusted gaming brands like DraftKings, FanDuel, and Betfair to operate legal online casinos in collaboration with legal retail casinos. Golden Nugget Atlantic City, for instance, operates Golden Nugget Casino, Betfair/FanDuel Casino, SugarHouse Online Casino, and BetAmerica in New Jersey.

This legal union of retail and online casinos ensures that players can enjoy secure legal online gambling. Playing at a state-regulated online casino offers the same level of safety as playing at a legal retail casino.

Other retail casino operators behind online platforms include Caesars Entertainment, Parx Casino, Resorts Digital Gaming, and Borgata.

The Best Online Gambling Casinos In America

These brands stand as some of the biggest and most trusted names in the legal gambling industry. They each operate online casinos with a keen interest in player safety. Players at legal online casinos can count on prompt payouts, fair games, and security of personal information.

Why Avoid Illegal Gambling Sites

Government agencies like the PGCB and DGE assure that state casino industries operate with transparency, accountability, and security of player funds and personal information. Depositing money at a legal online casino site offers players the security of knowing those funds can be withdrawn safely at any time.

Offshore or illegal gambling sites do not operate with this same obligation to player safety. These platforms aren’t regulated by any US governing body.

Depositing money on these sites can be a risky proposition, as illegal gambling sites have no obligation to allow for the withdrawal of funds.

Legal Online Casinos FAQ

Yes. Federal law allows states to individually determine their stances on legal online gambling.

New Jersey, West Virginia, Delaware, and Pennsylvania each allow for legal mobile casinos. Michigan will eventually join the list of US states with legal online casinos in 2021.

State regulatory agencies oversee all state-regulated, legal online casino platforms.

No. Only New Jersey, Delaware, West Virginia, Pennsylvania, and Michigan currently offer legal online casinos.

Apart fromsweepstakes siteslike Chumba Casino, any platforms offering online gambling outside of these five states operate illegally.

The legal minimum age for playing at an online casino is 21 in all states with legal mobile casinos. This age matches the minimum age for gambling at a retail casino in these states.

Yes. Nearly all legal online casinos are available as apps for iOS and Android mobile devices.

iOS users can find online casino apps in the App Store, while Android users can download the apps directly from an online casino’s website.

Players using mobile devices must be located within the borders of the state offering a legal gambling site when playing.

Deposit options at legal online casinos include ACH/eCheck, PayPal, debit cards, credit cards, prepaid cards, and casino cage deposit.

Other ways to deposit include PayNearMe, wire transfer, and eWallets like Neteller and Skrill.

Yes. Legal online casinos are owned by retail casino brands like Golden Nugget Atlantic City and Caesars Entertainment. Player funds at legal online casinos are just as safe as they are when playing at a legal retail casino.

Secure withdrawal methods at legal online casinos include ACH/eCheck, prepaid cards, PayPal, eWallets, casino cage withdrawal and check by mail.

Some of these methods, like eWallet withdrawals, can involve fees.

Yes. Legal mobile casinos use high-level encryption to ensure the security of customers’ personal and financial information.

Extra security measures, like two-step verification, can be added at player request.

Retail casino companies operate legal online casinos in collaboration with licensed technology partners.

Unibet Casino in New Jersey, for example, operates as a licensed partner of Hard Rock Atlantic City. New Jersey law permits retail casinos to operate multiple online platforms.

Yes. Many legal online casinos offer live dealer versions of blackjack, roulette, and other table games.

Live dealer games feature a human dealer overseeing the game at a physical table. The dealer and the table are located in a secure studio.

Skip the Headaches and Play at a Legitimate Site

You’re looking for a legitimate U.S. gambling site, but can’t decide which site to trust with your hard-earned money?

Good news! We’ve been in the online gambling industry for over a decade (several decades, really, if you add all of our experience together), and we’ve spent countless hours to bring you a list of the most legitimate sites.

Here’s what all of these sites have in common:

Jan 29, 2021 These US no deposit online casino bonuses are a big drawcard for online gamblers from the United States because they allow them to try out a casino and many of its most popular real money games 100% for free – no deposit required, no obligation to stay. The free cash/credits no deposit bonus is the most commonly available no deposit bonus and is the one that gives you free cash or casino credits. A good example is the exclusive free chip worth $65 available at Raging Bull casino as a no deposit bonus. No deposit required cruise. A no deposit bonus is a free bonus which you can use to play and win in real money games. The only requirement is that you make a casino account to claim the offer. The only requirement is that.

• 10+ years in the business with strong reputations.
• Attractive promotions for first-time customers.
• Quick money withdrawals (relative to the U.S. market).

Why Bovada Is #1 in the U.S.

#1: Fastest Check Cashouts

Bovada gets 10 times as much traffic as its second best US competitor and still delivers check payouts faster than any of them. Bovada processes check withdrawals in 7 days; many of its competitors take weeks, some more than a month to do the same. (There are other fast options, like the #3-ranked BetOnline, which delivers checks in 14 days.)

#2: Service

An equally important aspect of Bovada’s operations is its customer service. If there ever was an indication of how much a company respects its customers, it’s the level of customer service the company provides. I haven’t found any US-friendly site doing this aspect of the business better (although 5Dimes is a worthy runner-up).

#3: All-In-One

Finally, all parts of Bovada’s business (sportsbook, casino, poker, racebook) are popular. Bovada is best-known for sports betting and casino games, however, even its online poker room has around four times as many players online as the second biggest US poker site. You can access all of their games with one player account.

… But You Should Know This

Bovada is recreational-friendly, perhaps more-so than any other US site. You’ll find few golden opportunities in their sportsbook (read more about their use of dual lines), they have a relatively high overall house edge (especially after recently increasing house edge in video poker games) and their online poker room only has “anonymous” tables.

Although not everyone agrees with me, the recreational-friendly part is an advantage for skilled poker players. Since Bovada appeals to recreational gamblers, you’ll be like a shark among regular fish.

Bovada charges a 4.9% fee for credit card deposits (a lot considering how most sites charge nothing). The impact of the deposit fee is slightly compensated by their welcome bonuses, which are better than average.

All online gamblers look for entertaining games, attractive promotions and aesthetically pleasing software. To have a safe experience, however, you want a site to:

1. Serve its customers with safety and respect,
2. Operate with a reasonable house edge, and
3. Handle money transactions promptly.

Yes, the third point is included in the first point but it’s also such an essential part of the customer experience that it must be mentioned separately. Many online gambling websites operate without an adequate level of service so these points are worth considering. It’s rare to find a combination of all three points.

Bovada fulfills all of the above criteria better than other sites but 5Dimes does well, too. In fact, I’m confident in ranking those two as the best USA gambling websites specifically because they deliver so well in the areas related to safety and trustworthiness. A site without proper customer service and safety measures is not one you should deposit money to, regardless of its promotions and whatnot.

What Are Some Alternative Options?

For Sports Bettors

5Dimes.eu is the best betting site in the US for the following reasons: they’re professional-friendly and offer reduced juice betting lines (in other words, less house edge). Before betting on any game, I recommend taking a look at the odds 5Dimes is offering. They’ve been a reliable sportsbook for over 10+ years — you’ll find few complaints about 5Dimes online, and the ones you find have been resolved quickly.

For poker and casino games, I would go with Bovada. But for sports bettors, it makes the most sense to have an account at 5Dimes.

Another Solid Option

BetOnline.ag is my third suggestion. It’s not significantly better than the others in any area but they’re simply a solid option. Prompt cashout processing, decent poker traffic, good sports betting options and entertaining casino games. Additionally, I’ve had good experiences with their customer service.

For sports bettors, BetOnline is worth signing-up at simply to be able to compare betting lines among a few sites. For poker players, BetOnline may offer some good games every now and then (keep in mind: you can bet on sports and play casino and poker games with the same account, so plenty of gamblers will stumble on the poker games eventually). For casino gamblers, BetOnline has a basic but reliable offering.

BetOnline charges a 6% fee for credit card deposits.

Is It Legal to Play?

The definition of ”gambling” and the laws surrounding vary depending on which state you live in.

In Delaware, Nevada and New Jersey, some forms of online gambling have been legalized and regulated (only state-licensed sites are allowed to operate legally). In other states, it’s likely (although not widely agreed upon) that playing – and certainly operating – online gambling games for real money is illegal.

On a federal level, sports betting is the only form of prohibited gambling via the Wire Act of 1961. For several years, the Department of Justice (DOJ) maintained that the Wire Act applies to all forms of online gambling, but in December 2011, they corrected that stance by stating that the Wire Act only applies to sports betting – a result of a 13-page memorandum from the Office of Legal Counsel to the Criminal Division of the DOJ (source).

State laws, however, often indirectly prohibit gambling. Or to put it another way: it would be difficult to claim any forms of online gambling legal with absolute certainty in most states (lotteries and such aside). Most state laws indirectly prohibit gambling simply by making all forms of gambling unlawful that have not been made lawful.

Purely based on history, it’s unlikely you’ll get into legal trouble; then again, if something is illegal, you can get into trouble, and someone probably will. Gambling online may be illegal where you live. Contact a local gaming lawyer to get a better idea of your local laws.

Legal Troubles

Industry-changing events have taken place in the online gambling world – mainly concerning online poker – such as the UIGEA and Party Poker’s exit from the US market, or PokerStars’ exit from the US market in 2011.

Those crimes were committed by online poker operators, though, not players. Still, the mere fact that online poker companies were targeted was enough to cast a shadow over the legality of US online poker, and furthermore, players grew more and more worried about one of these sites getting shut down along with the money on their player accounts.

In fact, there is a legitimate reason to worry about dishonest US gambling sites taking your money. Some sites have indeed taken off with the money – a recent example is Lock Poker, which currently may owe its customers over $15 million. I created LegitGamblingSites.com mainly to give more exposure to the sites with strong track records of honest business practices.

The lawmakers, in that regard, have a point about not allowing unlicensed sites to provide online gambling games to US citizens. While that may not be the reason, it’s likely one of them. (If I had to guess, I’d say they’re more concerned about losing out on tax dollars and protecting the interests of brick & mortar casino owners such as Sheldon Adelson, although through the RAWA – Restore America’s Wire Act legislation – he tries to do that by himself.)

How to Move Money Around

Ever since the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) became a law, US citizens have had a more difficult time finding a suitable deposit method.

There are only a few left, actually.

The most common deposit method for US citizens is still credit card deposits, out of which VISA is the most widely accepted brand, followed by Mastercard, with American Express being a distant third. Cards must be eligible for both international and online transfers.

The alternative method is to use a money transfer service such as Western Union. Western Union is mostly a deposit-only method. (Bovada is an exception since they only allow you to withdraw money via a check.)

Why to use a money transfer service instead of a credit card?

• A card deposit fails to go through. This happens every now and then, and the only way to know if your card will be accepted is to try. According to various forum reports, Vanilla VISA is declined at most sites while Netspend VISA has been successful.

  Surprisingly, players have had problems with card deposits even at state-licensed sites due to banks like Bank of America outright declining all gambling transactions. Things will likely get better with the new MCC codes for VISA, Mastercard, American Express and Distant which will help casinos to identify gambling transactions more accurately. It’s unclear how much of a help this will be since banks still have the right to decline transfers marked with the new MCC codes, and due to not wanting to violate the UIGEA (according to which they’re prohibited from knowingly processing unlawful gambling transactions), banks may decide it isn’t worth it and keep cancelling transactions even if they were for state-licensed sites.

  This is expected to change once bigger states – perhaps even the biggest of them all, California – join internet gambling, since declining the transactions will then affect such a large percentage of any bank’s customer base.

• You want a faster cashout. While money transfer services cost more (many sites, like Bovada, allow one free check cashout a month), the money is usually delivered to be picked up at a local Western Union location in five days or less.
• You don’t want a check cashout. You need to go to a cashier to cash a check. Most people would rather avoid doing this, especially since banks aren’t allowed to knowingly process online gambling related transactions (unless in Delaware, Nevada or New Jersey, but people have had problems in those states as well).

In general, you’ll have higher transaction costs with money transfer services than with a combination of credit cards and checks. BetOnline and Bovada are the only major USA sites charging for credit card deposits and most allow one free check cashout per month – some, like True Poker, allow a free check withdrawal every seven days.

How to use a credit card/check combination?

1. Enter your credit card details online after which you have the money on your player account instantly.
2. When done playing, order a check cashout, which will take from a week to over a month depending on which site you’re dealing with.
3. Go to your local bank to cash the check.

How to use a money transfer service (like Western Union)?

1. Go to their website or a live Western Union location and send money to the gambling site. (You’ll need to contact the gambling site first to get their transfer details.)
2. When done playing, initiate the withdrawal from your player account.
3. Go to a live location to collect the money.

State-Licensed Sites

As mentioned, Delaware, Nevada and New Jersey have legalized and regulated some forms of real-money online gambling. Delaware started with online poker but has since expanded into casino games as well; Nevada offers online poker games only; New Jersey offers online poker and casino games.

As you can see, not a single one of these states offer online sports betting. In New Jersey – clearly the biggest market of the three – there’s a clause according to which sports betting may be considered to be added in the future.

Requirements

You must be physically located within a state’s boundaries to play at the licensed sites. If you’re currently located in California but live in Nevada, you’re unable to play until you return to Nevada; if you’re currently located in Nevada but live in California, you can play as long as you stay within Nevada’s state boundaries.

Licensed sites have to make sure nobody outside of the state can participate in the games. Geolocation – identifying exactly where a person is located – has been difficult, and there are still people who are unable to play even though they’re located within those states. This is one of the reasons licensed online gambling sites have done financially worse than expected.

Only existing brick & mortar casino owners within those states can apply for licenses, although they can apply together with an existing online gambling site in a software-licensing agreement, like Caesar’s Interactive and 888.com have done. If a poker site kept operating in the US after the UIGEA of 2006, it will be subjected to a ”bad actor” clause in Nevada and be prohibited from operating in the state for now.

Performance

Each state has had a rocky start, although New Jersey is doing OK. In March 2014, they did $11.87 million in revenue, which grew into $13.16 million in March 2015. A growth rate of 14.57% year-over-year is better than nothing, but still a far cry from the $1 billion within the first 7 months of operating Governor Christie expected (New Jersey gambling sites were launched in November 2013). In other words, his expectations were a little over $140 million a month on average, or about ten times the current revenue.

According to PokerScout.com, Nevada’s online poker revenue is going downhill. Year-over-year decrease in revenue of around 44% (from February 2014 to February 2015) is, no matter how you look at it, a disappointing result. Problems with card deposits and geolocation – both of which exist in other states as well – and player liquidity have undoubtedly contributed to the significant decrease. Players have to deal with fewer problems when playing at offshore sites, and as long as that continues, it will be difficult for state-licensed sites to gain major traction.

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In Delaware, the state keeps all yearly revenue up to $3.75 million. Since total revenue for 2014 was around $2.1 million, gambling operators have made nothing. The main reason for such a low amount of revenue is Delaware’s population of 0.94 million (in comparison, New Jersey has a population of 8.9 million). Liquidity is important for online poker since you need lots of players to run games at various stakes, in several forms and throughout the day. Delaware is trying to improve its poker liquidity by combining player pools with Nevada but so far there hasn’t been a significant improvement to its online gaming revenue.

If all of the three states were to combine their player pools, it would create a poker economy of around 12 million people, which could add significant liquidity to the games and thus bring in more revenue to each of the states.

Offshore Sites

Gambling sites accepting US customers from outside of the three states are all ”offshore” sites, meaning they operate from outside of the US and have no license to operate within the US. They have obtained a license in some other jurisdictions – such as Antiqua & Barbuda or Panama – but many of those jurisdictions have less-than-stellar reputations.

The disadvantage of gambling at offshore sites is the lack of safety. For an outsider, it’s impossible to know how strict testing measures these sites go through to prove their legitimacy, and hypothetically, if one of them were to disappear from the internet tomorrow along with your money, what could you do about it?

Lock Poker, as already mentioned, is an ongoing example. They’ve now lost their license in Curacao (weirdly, they were able to keep the license easily over a year after refusing to process customer cashouts) and there’s nothing anyone can do to make sure Lock Poker’s customers have their money returned. All we can do is spread the word to the people who are considering signing-up and depositing money to their site.

The best thing you can do is consider the reputation of the site rather than the jurisdiction since all jurisdictions have had dishonest sites. The longer a site has been fully operational, and the fewer complaints it has generated, the better. Essentially, Bovada has been in the online gambling business since 2000 when Bodog.com was founded (the US-friendly operations of Bodog were re-branded as Bovada in 2011), and as mentioned, they’ve achieved an excellent reputation with a high level of customer service.

But there are advantages to playing at an offshore site, too, and you can legitimately argue that the advantages override the disadvantages. Offshore sites place fewer restrictions on customers, need less personal information and have to compete with lots of other sites (within US states, competition is limited) which forces them to be at their best in order to succeed. There are no geolocation issues either.

Safety and legality aside – although obviously, both are big considerations – offshore sites are the better option in almost every area. Since only three states have legalized some forms of real-money online gambling in the US, they’re the only places for internet gambling for around 96.4% of US population.

What’s Next?

US online gambling is in a transitional phase: after a long wait of legalization, three states have done it, mostly with lackluster success. Suggesting geolocation and deposit issues are resolved, revenue streams may grow. With online poker, though, most likely at least one of the bigger states has to legalize it and combine player pools with the others to create a meaningful poker economy.

A federal legalization would create much-needed competition and player pools, which in turn creates a bigger incentive for operators to participate and, in many ways, a better environment for gamblers. If internet gambling was to be legalized nationwide, every operator and their grandmother would want a license. As of now, it’s more beneficial for most operators to stay outside of the US.