Pre-2006 online gambling in the USA was a mega-industry that met an untimely end due to the UIEGA. Thanks to recent state-level regulation it is once again proving to be a viable industry for cash strapped regions.
While gambling has always been a favoured form of entertainment in the United States it was mostly limited to Las Vegas and Atlantic City and beyond that the various Indian casinos.
The advent of online and then mobile gambling saw a boom in players from all over North America clamouring to play blackjack, roulette, craps, and early slot machines from home – even if the legality of the practice was a grey area.
The widespread enjoyment of online gambling was brought to a screeching halt in 2006 when the Department of Justice snuck in a last-minute amendment to the Safe Ports Act, the now infamous Unlawful Internet Gambling Enforcement Act (UIGEA).
Leading the Regulatory Charge
Rather than the “less than five years” prediction that did the rounds when UIEGA came into force, it took more than twelve years for states in the US to begin to regulate online gambling.
Even with the legal opinion that a lack of federal regulation allows for individual states to legally offer online casino games for real money, there has been a hesitation in pushing forward with widespread implementation.
New Jersey and Pennsylvania have been leading the regulated online gambling charge with both states offering games of chance within their boundaries.
Thanks to the successful implementation of regulation and the financial success of these two pioneers, as well as the efforts of Michigan and West Virginia, at least six other states are actively investigating going live with their own online gambling licences in the near future.
The Numbers Do Not Lie
Despite facing a challenging 2020/21 across all sectors the value of having licensed online casinos is indisputable when looking at the statistics released by both New Jersey and Pennsylvania.
Online Gambling: March 2021 vs March 2020:
In both instances, analysts for the regulating bodies were positive about not only the short term results but also what the shift in player behaviours predict about the future of online gambling.
Valerie Cross, an analyst for PlayPennsylvania, said:
"The year-over-year gains in revenue are staggering. The pandemic-related shutdowns of the state's retail casinos changed bettor behaviour for the foreseeable future. This is evident as online casino gaming keeps setting records, even as brick-and-mortar restrictions are eased."
Eric Ramsey, an analyst for PlayNJ, said:
"Even when we get past this pandemic, I don't think gamblers will log into online casinos any less. Instead, this year-long surge points to a long-lasting market shift."
Best of all these results have been achieved under tightly controlled circumstances where time gambling, financial risk and player behaviours have been managed in a way that protect the players from harm.
With player safety in hand and the massive financial potential of regulated online casinos, this will hopefully be the starting point for accelerated gambling regulation across the US.
Looking for a fresh take on crash games? We explore engaging crash and tap games with entertaining themes inspired by pop culture and classic gaming.
Learn how crypto beginners can bet safely using stablecoins like USDT and USDC. Skip market volatility and explore 4 top-rated online casinos offering fast, reliable stablecoin deposits today.
Join us for a chat with Wiktoria Hanak of BF Games to understand how the provider decides which games to make and learn more about the mathematical model and bonus feature selection process.
Casinos
Games
Jackpots
