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Is online gambling legal in the United States?

Regulated by stateBy stateNo federal licence: each state decides what it licenses.Updated Licence guide researched; page last updated 4 Nov 2026. In-depth review to follow.
AI-researched guideResearched

How this page was researched

  1. Quick AI overview

    A first AI summary of the rules.

  2. Researched licence guide

    The licensing guide, with its facts traced to their sources. Press and law-firm sources are marked where they are used.

  3. Deep AI ScanNot run yet

    Every question of our checklist answered from official documents only. Ask us to run it for United States.

  4. Checked by our research team
  5. Compliance review

Across every United States page: 170 official websites, 1041 pages cited, 1655 sourced data points. See the sources

Partly

Whether you can gamble online in the United States depends on your physical location, because online casino, sports betting and poker are legal only in some states and are licensed by each state's regulator. Legal sites must display the seal of their state regulator and use geolocation software to confirm you are inside the licensed state. Offshore sites are not licensed by any US state, they operate illegally under federal laws like UIGEA, and your funds have no legal protection there.

Is a site licensed here?

ResearchedResearched from the sources cited below. An in-depth review of United States is available on request. Request it

Gambling in United States: what you need to know

All gambling winnings are taxable income that must be reported on your tax return, and 24% federal withholding applies to certain large wins. State Voluntary Self-Exclusion Programs are available.

Upcoming law change
Bills to legalize sports betting in Mississippi and Georgia did not pass in 2026, and Michigan dropped its proposed online gambling tax increases. The federal derivatives regulator (CFTC) has proposed treating sports and other event contracts sold on prediction markets as swaps under federal law; comments close on 18 November 2026 and the rule is not final.

Shadow market context

$511B wagered illegally each year: $13.3B in lost state tax
Estimated turnover: $511B+ annually

Per the American Gaming Association, US residents wager an estimated $511B annually through illegal channels (online casinos, offshore sportsbooks, unregulated prediction markets): costing states roughly $13.3B in lost tax revenue. Because online casino gaming is legal in only seven states, the illegal US online-casino market is estimated at roughly 3x the size of the entire legal US online-casino sector. Unregulated crypto prediction platforms alone account for ~8.7% of all unregulated sportsbook revenue inside the US.

Sources: American Gaming Association: Americans gamble >$500B illegally per year · Yogonet: Global unregulated online gambling hit $5.9T in 2025

Minimum age: 21

Online casino: 21. Sports betting: 21 (18 in some). Lottery: 18 (21 in some).

Tax on winnings: taxable

Gambling winnings are taxable in the United States

All gambling winnings are considered taxable income by the IRS. A 24% federal withholding tax applies to certain large wins (e.g., over $1,200 from slots or $5,000 from lotteries/pools). State income tax stacks on top and ranges from 0% to 14.8% (average ~5%): nine states (NV, FL, TX, WA, SD, AK, WY, TN, NH) levy no income tax at all, while California reaches the top of the band. Winnings must be reported on your tax return, and losses can be deducted up to the amount of your winnings.

How to check a site is licensed in the United States

The regulator's register lists 636 online licence holders in United States (read 6 Nov 2026).

Always verify a casino holds a valid State-by-state (e.g., NJDGE, NGCB, PGCB, MGCB) and tribal (NIGC) licence before depositing.

Prominent operators in United States

FanDuel
DraftKings
BetMGM
Caesars Sportsbook
Fanatics Sportsbook

If a site isn't on the regulator's licensee register, ask the regulator before you play: an unlisted site is usually not licensed here (a register can lag behind a new licence). An unlicensed site is outside the regulator's supervision, so you cannot complain to the regulator about it.

Red flags: how to spot an unlicensed site

  • Verify the Licence Seal in the Website Footer

    Every licensed US gambling site must display the seal of its state regulator (e.g., the PGCB logo in Pennsylvania). Clicking this seal should take you to the official regulator's website. If there is no seal, or it doesn't link to a .gov site, the site is not legal.

  • Check the Operator on the Official State Register

    Each state regulator maintains a public list of all licensed and approved online operators on its official government website. Before depositing, confirm the brand name is on this list.

  • Confirm Geolocation Software is Active

    Legal sites are required to use industry-standard software (like GeoComply) to verify you are within the borders of the licensed state. If a site does not require a location check, it is an illegal offshore operator.

  • Look for US-Based Responsible Gaming Logos

    Legal sites must provide prominent links and resources for responsible gambling, including the number for the National Problem Gambling Helpline (1-800-MY-RESET) and information about state self-exclusion programs.

  • Ensure Payment Methods are Reputable US Institutions

    Licensed operators use trusted, US-based payment methods like PayPal, ACH bank transfers, and major credit cards. If a site pushes you to use cryptocurrency or complex international money transfers, it is a major red flag indicating an illegal offshore site.

Gambling laws by state in United States

United States regulates gambling at the state level. Each jurisdiction sets its own rules on online casino, sports betting, taxation and operator licensing.

Bonuses: what's allowed and red flags

What you can expect from a licensed site's offers in United States. The rules operators must follow are on the operator page.

Welcome bonus
Allowed
  • • Betting on high school sports is prohibited in Michigan.

While there is no statutory cap, state regulators scrutinize the fairness and transparency of wagering requirements, which typically range from 1x to 15x but can be higher.

Recent regulator actions in United States

Fines, suspensions and revocations as published by the regulator itself. Showing the newest 5 of 22.

  • 10 Sep 2026 · Cease-and-desist order · Underdog Predict
    Connecticut DCP cease-and-desist: illegal prediction markets offering sports wagers
    Read the regulator's notice →
  • 10 Sep 2026 · Cease-and-desist order · Gemini
    Connecticut DCP cease-and-desist: illegal prediction markets offering sports wagers
    Read the regulator's notice →
  • 10 Sep 2026 · Cease-and-desist order · Webull
    Connecticut DCP cease-and-desist: illegal prediction markets offering sports wagers
    Read the regulator's notice →
  • 10 Sep 2026 · Cease-and-desist order · Novig
    Connecticut DCP cease-and-desist: illegal prediction markets offering sports wagers
    Read the regulator's notice →
  • 10 Sep 2026 · Cease-and-desist order · ProphetX
    Connecticut DCP cease-and-desist: illegal prediction markets offering sports wagers
    Read the regulator's notice →
Updates we track

Changes to United States's gambling rules

Official changes that affect players, newest first, each with the document it comes from. We have no research report for United States yet: each change is recorded from the official text it was checked against, and the rest of this page has not been rewritten for it.

1 from the official text, no research report yet
  1. 19 Oct 2026federalregister.gov
    Further Definition of “Swap” To Exclude Casino-Style Gambling Products

    The rule changes the CFTC's treatment of gambling products, not players' wagering obligations.

    In force since 19 Oct 2026Official source: federalregister.gov document

    From the official text · no research report yet
    Official words and what it touches
    “The Commodity Futures Trading Commission (“Commission” or “CFTC”) is adopting an interim final rule (“Interim Final Rule”) to codify its longstanding position that casino-style gambling products, including wagers placed on sportsbooks and casino games, are excluded from the “swap” definition.”
    Document
    Further Definition of “Swap” To Exclude Casino-Style Gambling Products · federalregister.gov document
    Status
    Accepted as a law change on 27 Oct 2026; we have no research report for United States yet, so this line, from the official text, is our record of it.

Our daily watch reads the official publishers we follow for United States. A change is listed once it has been checked against the official document, by a person or, where marked, by our automated check. Dates are the official dates, not the day we found the change.

Official notices

Guidance, court decisions and blocklists in United States

Official guidance, court decisions and changes to the list of blocked gambling sites in United States, newest first, each linked to the official text.

  1. 26 Oct 2026cftc.gov
    The CFTC and the National Basketball Association signed a Memorandum of Understanding to protect the integrity of professional basketball in prediction markets.

    Under the MOU, the two bodies will share information by regularly communicating and discussing integrity matters.

    Official source: cftc.gov

    Official guidance

Our daily watch reads the official publishers we follow; each item is listed once a person has checked it against the official text, and every sentence is taken from that text. Dates are the official dates where the text gives one, else the day it was published.

Self-exclusion and problem-gambling help in the United States

How common it is

1% of adults in United States are estimated to have a gambling problem (DSM-IV past-year pathological gambling, adults, 2011–13 (Welte et al. 2015); the same survey finds 2.4% on DSM-5 or SOGS 5+).

Compare with other countries →
National helpline

1-800-522-4700

National Problem Gambling Helpline · Visit website

Self-exclusion schemeRegister: State Voluntary Self-Exclusion (NCPG)

Registering blocks your access to the licensed operators the scheme covers, for the period the scheme sets.

Set your limits before you play. If gambling stops being fun, stop and talk to someone.

Complaints and disputes in the United States

  1. 1

    1. Contact Operator Customer Support

    The first step is always to attempt to resolve the issue directly with the licensed operator's customer service team. Operators are required by state regulations to have a formal process for handling player complaints. Keep detailed records of all communication.

  2. 2

    2. File a Formal Complaint with the State Regulator

    If the operator fails to resolve the issue, the player can file a formal complaint with the state gaming commission that licenses the site (e.g., the New Jersey Division of Gaming Enforcement, Pennsylvania Gaming Control Board). Regulators have dedicated online forms and investigative staff for this purpose.

  3. 3

    3. Alternative Dispute Resolution (ADR) / Legal Action

    If the regulator's decision is not satisfactory, the final recourse is typically through legal channels. Some states may have an independent ADR process, but often the next step is to pursue a civil lawsuit.

Common myths about gambling in the United States

  • Myth
    Online gambling is legal everywhere in the US now.
    Reality

    False. Legality is determined by your physical location. Only 8 states have legal online casinos, and while 39 states allow sports betting, not all permit mobile wagering. Geolocation technology strictly enforces these state borders.

  • Myth
    My gambling winnings aren't taxed unless I get a form from the casino.
    Reality

    False. All gambling winnings are considered taxable income by the IRS and must be reported on your tax return, regardless of whether you receive a W-2G form. The 24% federal withholding on large wins is just a down payment on the total tax you may owe.

  • Myth
    Using an offshore betting site like Bovada or BetOnline is a legal grey area.
    Reality

    False. These sites are not licensed by any US state. Using them is illegal under federal laws like UIGEA. While players are rarely prosecuted, your funds have no legal protection, and these sites have no obligation to pay out winnings or adhere to responsible gaming standards.

Frequently asked questions about gambling in United States

Are gambling winnings taxed in the United States?

Yes. All gambling winnings are considered taxable income by the IRS. A 24% federal withholding tax is automatically applied to large wins (e.g., over $1,200 from slots or $5,000 from lotteries). You must report all winnings on your tax return, and state/local taxes may also apply.

Is it legal to use a VPN to gamble online in the US?

While using a VPN for privacy is generally legal, using one to bypass geo-location blocks to gamble on a site not licensed in your state is a violation of the operator's terms of service. This can lead to your account being closed and your funds confiscated. It may also be illegal depending on state law.

Can I gamble with cryptocurrency in the United States?

This is a grey area. State-licensed and regulated gambling sites do not accept cryptocurrency due to strict anti-money laundering (AML) regulations. Offshore casinos that accept crypto from US players are operating illegally under federal laws like UIGEA. There is no federal framework that explicitly regulates crypto gambling.

Why can't I play online casino games in Las Vegas?

Despite being the US gambling capital, Nevada has not implemented online casino gaming (iGaming) like slots or blackjack. While legal, major casino operators have not launched it because they fear it could reduce foot traffic and revenue at their Las Vegas Strip properties. Only online poker is available statewide.

What United States bets on most

Top betting event
Super Bowl
American football

The American Gaming Association estimates 68 million US adults wagered on Super Bowl LVIII (2024), with $1.39 billion bet legally and several billion more bet illegally; it is by far the country's largest single-event betting market.

Biggest wins in United States

Lottery
$2.04 billion
2022

A single ticket sold in Altadena, California, won the largest Powerball and overall lottery jackpot in United States history.

Sources: Guinness World Records · The Economic Times

Land-based casino
$39.7 million
2003

A 25-year-old software engineer from Los Angeles won the largest ever Megabucks slot machine jackpot at the Excalibur Hotel & Casino in Las Vegas.

Sources: Guinness World Records · Scioto Valley Guardian

Online casino
$22.4 million
2025

A player in Michigan won the largest online casino jackpot in U.S. history with a 20-cent spin on the 'Huff N' Even More Puff' progressive slot game at DraftKings Casino.

Sources: Casinos.com · Covers.com

Sports betting
$75 million
2022

A Houston furniture store owner won what is believed to be the largest sports betting payout in history from a series of bets on the Houston Astros to win the World Series.

Sources: Forbes · CBS News

Methodology & sources

The research behind our United States coverage

Counted across every United States page, not this page alone.

compiled 26 Oct 2026

170
official websites
regulators, legislatures, courts
1,041
pages cited
specific documents, not homepages
1,655
sourced data points
each traced to the instrument

Across every United States page on this site: players, operators and the licence guide. The research report behind them cites official sources: the law, the regulator, the gazette, the courts and each platform’s own published advertising policy. Page sections not yet rewritten from the report may cite other sources.

This page is AI-researched from the sources below, with the licence guide's facts traced to their sources. It has not yet been through our Deep AI Scan, the full 201-question pass from official documents only.

Run a gambling business?
For operator tax, advertising rules and compliance, see the United States operator overview; for the licence, its cost and the application steps, the licence guide.
Report an inaccuracy on this page
Disclaimer. This page reflects the law as we understood it on 4 Nov 2026. Rules change: always check the current position with State-by-state (e.g., NJDGE, NGCB, PGCB, MGCB) and tribal (NIGC). We are not a legal adviser.