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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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British Columbia Lottery Corporation

SCCG Management Signs Contract with British Columbia Lottery Corporation

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SCCG Management has signed a contract with the British Columbia Lottery Corporation (BCLC), the B.C. Crown corporation which conducts and manages commercial gambling in the province, including lotteries, casinos, and online gaming. This partnership aims to undertake a comprehensive assessment and strategic enhancement of BCLC’s diverse operations.

The work between SCCG and BCLC will involve a thorough review of technological infrastructures, strategic market positioning, and the integration of various gaming modalities. SCCG’s extensive expertise will be pivotal in harmonizing BCLC’s online and physical gaming experiences.

Stephen Crystal, Founder and CEO of SCCG Management, said: “Our collaboration with BCLC represents a remarkable opportunity to push the boundaries of innovation within the gaming industry. We are committed to deploying our resources and expertise to enhance BCLC’s operational efficiencies and customer engagement strategies. It’s an honor to partner with an organization that has a robust impact on the community through its support of public initiatives.”

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AGCO

AGCO Requires Ontario Gaming Operators to Stop Offering WBA Bets Due to Integrity Concerns

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The Alcohol and Gaming Commission of Ontario (AGCO) has mandated all Ontario-registered sportsbook operators to halt offering and accepting wagers on World Boxing Association (WBA) events immediately. This measure is being taken to protect the Ontario betting public following concerns that WBA-sanctioned boxing matches are not adequately being safeguarded against match-fixing and insider betting.

Since December 2023, the AGCO has been conducting a comprehensive review of suspicious wagering activity on a WBA-sanctioned title fight between Yoenis Tellez and Livan Navarro that was held in Orlando, Florida. Suspicious betting patterns on the bout lasting over 5.5 rounds were reported to the AGCO by two registered independent integrity monitors and detected in Ontario by a registered igaming operator. Media reports also alleged that Tellez’s Manager placed $110,000 on the match lasting longer than 5.5 rounds at a Florida casino. The bout ended with Tellez knocking out Navarro in the 10th round.

Following an intensive review that included outreach to the WBA, Ontario-registered gaming operators, independent integrity monitors, and regulators in other jurisdictions, the AGCO has concluded that bets related to WBA events do not currently meet the Registrar’s Standards for Internet Gaming.

The AGCO requires all Ontario-registered gaming operators to ensure the sport betting products they offer are on events that are effectively supervised by a sport governing body. At a minimum, the sport governing body must have and enforce codes of conduct that prohibit betting by insiders.

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Registered gaming operators were unable to demonstrate to the AGCO that the WBA prohibits betting from insiders, which could include an athlete’s coaches, managers, handlers, athletic trainers, medical professionals, or others with access to non-public information. Further, registered gaming operators were unable to demonstrate that the WBA took any action to investigate or enforce the allegations of potential match-fixing and insider wagering.

The AGCO has indicated to registered operators that in order for WBA betting products to be reinstated in Ontario, operators must demonstrate that the WBA effectively supervises its events, thus bringing them into compliance with the Registrar’s Standards. In December 2022, the AGCO required gaming operators to stop offering bets on UFC events for similar issues related to insider betting safeguards. Within a month, UFC amended its policies and implemented new protocols that allowed the AGCO to reinstate betting on UFC events in the province.

“Ontarians who wish to bet on sporting events need to be confident that those events are fairly run, and that clear integrity safeguards are in place and enforced by an effective sport governing body. Knowing the popularity of boxing in Ontario, we look forward to reinstating betting on WBA events once appropriate safeguards against possible match-fixing and insider betting have been confirmed,” Dr. Karin Schnarr, Registrar and CEO of AGCO, said.

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Andrew Cochrane Chief Business Officer of GiG

GiG increases Ontario market presence, powering the launch of Casino Time

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Gaming Innovation Group Inc. (GiG), has announced the launch of Casino Time, powered by its award winning iGaming platform and pioneering real-time rules engine LogicX, with revolutionary sportsbook, SportX soon to follow, to further extend its footprint in the regulated Canadian province of Ontario.

The launch of Casino Time carries extra significance, marking only the second time that on-demand, regulated online Bingo has been made available in Ontario. The new Bingo product vertical, launched alongside a strong Casino offering, will be boosted by GiG’s new sportsbook, SportX, as part of a planned release later this year.

GiG has focused its solutions on driving exponential growth in revenue for operators with its highly scalable iGaming platform, offering localised third party content and leading suppliers for the Ontarian market. GiGs peerless gamification layer creates an optimised and immersive casino experience tailored to regional preferences, swelling client retention and player engagement.

Canadian owned and operated, Casino Time is a joint venture amongst leading retail operators in Ontario’s Charitable Gaming sector, delivering Bingo, Slots and Live Dealer Casino Games. Promising a personalised service and community experience, Casino Time is continuing its long-standing partnership with local charities, introducing its joint fundraising model into the iGaming space for the first time.

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Now coming towards the end of its second year of licensed operations, Ontario has emerged as one of the largest iGaming markets in North America, second only to New Jersey according to data supplied by Vixio. The first and as yet only Canadian province to launch a regulated market, Ontario boasts more than 1.6 million active player accounts spread over 40 plus operators, generating €1.3 billion in Gross Gaming Revenue (GGR) in its first year of trading, with this data supplied by iGaming Ontario.

Andrew Cochrane, Chief Business Officer of GiG, said: GiG continues to set the pace with a strong cadence of brand launches in 2024, and I’m pleased that when operators are seeking platform solutions in regulated markets, GiG is leading the pack. Our partnership with Casino Time, will help deliver something new and exciting to the Ontarian market, and further helps to demonstrate the flexibility of our solutions, adapting to match the regional aspirations of our partners to deliver growth.

D’Arcy Stuart, CEO of Casino Time, said: “We are thrilled to partner with GiG as the core technology provider of our iGaming platform. Their powerful suite of player engagement tools, as well as diverse content and regulatory integrations, underpin our ability to serve and delight our player community. Our hybrid online and offline customer network, as well as unique bingo offerings, will drive exciting opportunities as the platform and the marketplace continues to grow.”

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