Online Casino Game Access Across US State Lines
The US dictates its gambling laws on state lines. This means they can change just a few miles down the road, closing off access to websites and apps.
Travel across North America using your favorite casino app, and you may find that access limits, or halts entirely, in the space of just a few miles. New York has a total ban on casinos, yet just a bus ride away in New Jersey they are totally legal. Where many countries have national frameworks, the US decides its gambling laws on a state-by-state basis. When the legality of sports betting is placed into the mix, then gambling in the US becomes quite a patchwork of laws and regulations.
From Federal to State Governance
Across the globe, most online casino laws will be governed by the country they operate in. For example, Jackpot City online casino operates in South Africa. It holds a license from the Mpumalanga Economic Regulator, which oversees online gambling licenses in the country. This is similar in the United Kingdom, the Netherlands, and other countries around the world: The government gives out licenses and decides gambling laws.
In the US, this is not the case. In 2018, a ruling by the US Supreme Court struck down a 1992 law, which had banned commercial sports betting in most states. There were also other laws that were repealed during this motion.
The Wire Act of 1961 forbade gambling to be conducted over the telephone and across state lines, which was also no longer applicable.
Others included the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). This stated that “knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the Internet and that is unlawful under any federal or state law.” At the time this was created, it wiped out the online gambling sector in the United States.
Freedom from these meant states could now decide how they wanted to allow gambling, and to what extent. Even now, this has led to patchy approaches. Some states like Pennsylvania and Michigan jumped wholesale into online gambling. Others continued to outlaw even sports betting. To date, only eight states (including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, Maine, and West Virginia) allow online casinos.
Why Do Some States Still Not Allow Online Casinos?
There are many reasons why certain states do not allow online casinos. One of the most frequent is that it could damage their physical casino revenue. As this could eat up foot traffic, the worry is that it may also impact local businesses such as hospitality ventures.
This could be a valid concern. In August, Atlantic City, New Jersey, saw revenue of $294.9 million, down from $311.9 million in August 2025, a recurring pattern. Yet online casino revenue recorded a growth of 4.4%. Only one of the physical casinos in that time period noted growth.
Some landscapes are also extremely complex. Take California, where the state, tribal gaming rights, and the state’s card rooms all have differing views. This has made a complex landscape, where any legislation is hard to change due to conflicting interests, often within individual sectors themselves.
Balancing Tax Revenue Against Public Health Concerns
The greatest allure of allowing online gambling is the taxable revenue it can bring. The bigger gambling profits become, so do the state coffers. All this money can be pumped back into healthcare, education, and social causes.
As an example, in the 2023-2024 tax year, the retail gambling sector generated $1.39 billion, while online gambling generated $1.04 billion. As stimulus funds have dried up, this is a huge pull for states that are struggling with a global economic downturn and are looking for ways to shore up budget deficits.
All of this is weighed up against public health concerns. For some people, gambling can become a real problem. That makes public health and addiction levels a real concern. Many states introduce measures, often funded by gambling companies or taxes, to put safeguards in place to prevent this. This can include research, helplines, and support services.
The Future of Online Casino Access in the United States
For those who live in states where online casinos are banned, there is always the pull of offshore casinos. Catering to global audiences, it only takes a VPN to access them and find casino gaming. This is also something states must take into account. Just because they ban gambling, it does not mean people can not access it from elsewhere.
The dangers of this are many. Offshore casinos may have lax regulations, security, or may be outright fraudulent with their games. Crucially, they may not have safer gambling standards. This makes them very dangerous, and if a large number of people in the state are using them, it is a lot of taxable revenue going to waste.
It seems unlikely that many states will change their views in the near future. This has made the market stagnate, and instead companies are looking to new markets. This is why quality providers such as Betway are cropping up in places like South Africa.
P.S. If you want to support the BandurArt team, consider sharing your feedback about this post and our project. Any feedback is much appreciated!
