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Gambling Laws in the USA Explained – NJ + South Dakota State Legislation Examples

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Gambling laws in the US may seem complex, but once you break them down, they actually make perfect sense. It all begins with Federal Law passed through Congress where there is a ban on American financial institutions allowing players to fund any type of online gambling accounts.

If caught, the fine is exorbitant to say the least, so naturally the financial arena in the US obliged by banning all online casino transactions. Even crypto wallets based in the US are susceptible to fines if caught allowing US subscribers to fund an overseas online casino account. However, state level laws can override Federal law using land-based casino licenses where taxes on gambling revenue are still applicable.

Explanation of how US online casinos can operate under land-based casino licensing

To explain further, New Jersey is perhaps one of the best examples to use. Land-based casinos have licences to operate in Atlantic City—the only place where casinos are legal in the state under the New Jersey Casino Control Commission (NJCCC).

Next, under the Division of Gaming Enforcement’s Licensing Forms (NJDGE), online casino brands can apply for a partnership under one of the land-based casinos. For example, you can check out this virgin-casino review, which is a US online casino available in New Jersey under the Tropicana Atlantic City land-based casino licence. As long as Virgin Casino operates its online gambling servers on the premises of Atlantic City’s Tropicana land-based casino, players that connect with these servers are effectively betting inside the casino.

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As a result, betting using US dollars is legal, and financial institutions can legally offer deposit and withdrawal methods with these casinos. Adding to this, if you search for legal/licensed online casinos in New Jersey, you will also see the Tropicana online casino is another option.

Both Virgin and Tropicana online casinos operate under the same Tropicana land-based casino license and, as such, revenue earned via the online casino is clubbed together and reported to the Inland Revenue for tax purposes.

Explanation of states that use different frameworks for multiple gambling verticals (South Dakota)

Both online sports betting and online casinos can operate in the Garden State under the laws laid out by the NJDGE. However, in some states, online gambling is illegal, while making deposits to online and/or mobile sports betting are legal. This may seem odd at first, but in effect, both gambling verticals operate under different laws in some states. Then there are separate land-based sports betting, horse racing, and casino laws that do not coincide with online gambling laws. In South Dakota, there are different laws for all verticals.

South Dakota Gambling Laws:

  • Online Horse Racing—legal framework in place (Permitted)
  • Land-based Horse Racing—legal framework in place (Permitted)
  • Dog Racing—no legal framework (Not permitted)
  • Online Casinos—no legal framework (Not permitted)
  • Land-based Casinos—legal framework in place (Permitted for certain games)
  • Poker—legal framework in place (Permitted)
  • Online Sports Betting—no legal framework (Not permitted)
  • Land-based Sport Betting—no legal framework (Not permitted)
  • Fantasy Sports Betting—no legal framework (Not permitted although some confusion)
  • Lottery—legal framework in place (Permitted)

As you can see, in South Dakota, the laws allow online and land-based horse racing bets. Yet, this does not fall under sports betting, which refers to football, soccer, basketball, and so on. Meanwhile, no forms of online casino gambling have a legal framework in place. Lottery is permitted thanks to a 1986 constitutional amendment approved by voters.

Land Based Casino Games Permitted in South Dakota

In 1989, land-based ‘Video Keno’, ‘Bingo’, and ‘Video Poker’ came to South Dakota as the first casino games to legally operate in the state. Shortly after, casinos in Deadwood would come to town via a vote that made casinos legal here to save the city’s economy.

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Land-based casino games now legal in South Dakota’s Deadwood:

  • Video Slots
  • Blackjack
  • Poker
  • Craps/Roulette
  • Video Keno
  • Bingo
  • Video Poker

Casinos must abide by maximum bet limits on each game and the number of tables, slots, or other gaming machines allowed on the premises. With the laws regularly changing, the city is now a popular casino destination with over 40 land-based establishments operating today.

Why is it important to understand the different state laws?

If you are looking to gamble legally in the US whether online, retail, or at a land-based casino establishment, through this guide, you will now be aware that some states are straightforward with their laws, while others have various laws across multiple verticals.

New Jersey, Michigan, Pennsylvania, Delaware, West Virginia, and Connecticut have the most straightforward laws for pretty much all forms of gambling. Nevada is fairly straightforward legalising all forms of gambling online and land-based with the exception of online casinos. Then there are states you will need to do a little more research on, such as South Dakota, where gambling laws are applied to a variety of different verticals. Now you know what to look out for, you can travel across the country and know what to look for before deciding whether you can legally gamble.

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AGCO Removes Cap on Seller Commission for Charitable Lottery Products

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The Alcohol and Gaming Commission of Ontario (AGCO) has updated several lottery policies to remove the cap on seller commission for Paper Raffles and Media Bingo, along with removing the prohibition on Catch the Ace paper lotteries, to align with other charitable lottery products.

Licensed charities may now negotiate commissions directly with sellers and determine commissions, provided they are reasonable and tied to the cost of service provided by the seller.

These updates further the AGCO’s commitment to adopt an outcomes-based regulatory approach and reduce burden for the charitable gaming sector. Local charitable organizations will have greater flexibility to make decisions that best serve their fundraising objectives.

Important Reminders

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• Charities must still receive approval for other expenses incurred under their licence and retain receipts for seller commission paid.

• Licensing authorities will not require documentation to be submitted as part of the application process, however, charities are still subject to audit to determine compliance.

• Charities are reminded of their legal requirement to meet their obligations under the Criminal Code and with respect to conducting and managing a charitable gaming scheme.

• As with all licensed charitable lottery events, charities must take the necessary steps to ensure that they are conducting and managing the lottery event within Ontario.

For charitable gaming-related inquiries, email an AGCO Eligibility Officer at [email protected] or call AGCO Customer Service at 1-800-522-2876, Monday to Friday from 8:30 a.m. to 5 p.m.

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Alon Segev

Segev LLP Celebrates 10 Years of Business-Focused Legal Innovation

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Leading business, technology, finance, and gaming law firm, Segev LLP, is proud to announce its 10th anniversary. Over the past decade, Segev has evolved from a bold idea into a multi-jurisdictional firm serving clients across Canada, the U.S., and beyond.

Built for innovation-driven industries, the firm is widely recognized for its work with companies at the forefront of gaming, crypto, technology, and emerging sectors. “Our 10-year anniversary is a defining moment,” said Founding Partner, Ron Segev. “It’s a testament to the strength of our team and our culture of teamwork, self-improvement, and growthall of which is directed at scoring wins for our great clients.”

As industries like fintech, crypto, iGaming, and AI have matured, so has the firm, often in parallel with its clients. “We’ve all grown together with our clients from one success to the next, whether it be helping clients complete financings or helping them close business,” said Managing Partner Alon Segev. “I look forward to continued growth for us and our clients in the next 10 years!”

The firm’s client-first approach has consistently earned recognition from top legal ranking guides. Segev LLP is ranked by Chambers and Partners as a “Leading Firm” and “Band-1” in Canada for Gaming Law and are also recommended by The Legal 500 and Lexology. These rankings reflect the team’s ability to deliver strategic, high-quality legal solutions that align with their clients’ business goals.

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Recognized for their unique ability to exceed expectations and deliver out-of-the-box solutions, Segev LLP’s clients have affirmed: “The firm demonstrates its capability not only to understand complex matters, but also to offer solutions that are practical, pragmatic, and value-adding.”

“Segev possesses outstanding resources and maintains global partnerships, enabling it to deliver precise and informed responses to any queries related to the iGaming industry.”

“Epic service, very good, I won the case!”

“Great service, friendly atmosphere, and support.”

Several Segev team members also reflected on the milestone: “There was a moment early in my time here when I realized I wasn’t just being brought in to help; I was expected to contribute, take initiative, and run with big ideas. That stuck with me,” said Negin Alavi.

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“Together with our clients, [Segev] has experienced remarkable growth over the past decade. I’m honored to have contributed to this journey and to celebrate these shared successes,” said David McHugh.

Segev has cultivated a thriving law practice on the principle that challenges are to be embraced as opportunities. The approach has enabled us to grow as lawyers, but more importantly, it has enabled us to ensure the success of our clients,” said Mark Balestra.

“Since joining through Segev’s Ontario expansion, I’ve had the chance to work alongside some of the sharpest and most collaborative lawyers in the gaming space,” added Manav Bhargava. “As a full-service firm and industry leader, Segev stands out for its ability to support innovative businesses with practical, forward-thinking legal advice.”

Segev LLP will commemorate the anniversary with a series of internal and external initiatives throughout the remainder of the year.

The post Segev LLP Celebrates 10 Years of Business-Focused Legal Innovation appeared first on Gaming and Gambling Industry in the Americas.

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INCENTIVE GAMES SECURES ONTARIO GAMING LICENSE

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Incentive Games, a leading B2B games provider, is proud to announce that it has been awarded an Ontario Gaming License by the Alcohol and Gaming Commission of Ontario (AGCO), effective today. This achievement enables the company to offer its portfolio of real-money games to licensed operators and players across the province.

The license underscores the Incentive Games’ commitment to meeting the highest standards of compliance, security, and operational excellence. The rigorous application process demands robust security protocols and comprehensive responsible gaming measures and affirms the company’s readiness to enter one of Canada’s most dynamic iGaming markets.

The North American market is a strategic focus for Incentive Games, and this milestone follows closely on the heels of the company receiving its Provisional Michigan gaming licence from the Michigan Gaming Control Board earlier this month.

Incentive Games will distribute its real-money gaming content in Ontario through Incentive Studios, the company’s dedicated Real-Money Gaming division, ensuring a focused and tailored approach to the market.

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“Ontario represents a huge opportunity for us, and securing this license is a proud moment for the whole team,” said John Gordon, Chief Executive Officer at Incentive Games. “It reinforces our dedication to meeting the highest standards while delivering compelling real-money content. We’re looking forward to building strong relationships in the region and continuing our momentum across regulated markets worldwide.”

The post INCENTIVE GAMES SECURES ONTARIO GAMING LICENSE appeared first on Gaming and Gambling Industry in the Americas.

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