Federal Sports Betting Laws For USA Players
While there are several laws when it comes to sports betting both in person and online in the US, they are not hard to understand at all and that is where we come in to break them down for you. While most of the laws surrounding sports betting for USA players are geared towards the operators, you’ll still want to stay informed that way you do not cross any lines. Other than the laws regarding sports betting, we’ll lay out for you the online sportsbooks that you can legally use.
Do Federal Laws Target Bettors?
Federal sports betting laws do not necessarily target bettors and users of the betting sites. However, bettors should be cautious of those laws for their own laws. As far as prohibiting sports betting laws go, the only thing about it that really is prohibited are those that run unlicensed, unregulated, neighborhood sports betting sites. While users of those sites won’t get in trouble, the ones operating them will leaving users at risk of not getting paid out.
U.S. Federal Sports Betting Laws
Federal Wire Act of 1961
The Federal Wire Act is the quintessential and most encompassing of all of the gambling legislation which has been enacted to date. Passed in 1961, it forbids the business of gambling and processing of gambling information through any wire transmissions or interstate transactions. This includes the internet as no one is allowed to operate an online gambling site for profit anywhere on U.S. soil.
This Act was passed specifically to combat organized crime and bring an end the funding of such nefarious schemes. During a time when the Mafia and other foreign entities were beginning to grow during the peak of the Cold War, our nation’s leaders found that gambling was indeed a means for such organizations to gain funding for their activities. The Federal Wire Act of 1961 quickly aided law enforcement in bringing down such criminals and has muffled illicit behavior ever since.
While these laws cover the entirety of the United States, they do not cover anything outside of U.S. jurisdiction or how we as citizens may interact with foreign services. With the advent of the internet, it is obvious that there are many online sportsbooks, casinos and poker rooms which are scattered across the world, well outside of any state U.S. regulations, that are easily accessible to any U.S. resident from the comfort of their own homes. These sites are indeed exempt from the Federal Wire Act and citizens of the United States are beginning to realize that placing a wager on any sporting event they wish is perfectly legal provided that the bet is made with an online sportsbook not based on U.S. territory.
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Professional and Amateur Sports Protection Act (PASPA)
Passed in 1992 by the urging of then NBA commissioner David Stern, the Professional and Amateur Sports Protection Act was created and enacted after Congress found that sports betting was a potentially corrupt and detrimental to American society. Fears of the integrity of sports were intensely scrutinized as worries and concerns of players betting on or against themselves flooded the minds of lawmakers and sports fans alike. The law outright banned all betting on sports in an official capacity as it disallows any state from creating its own licensed sports betting facilities. Nevada, Delaware, Montana, and Oregon were all exempt from the Act however only Nevada offers full-fledged sports betting within their casinos and remains the only legal physical location to make a number of sports bets.
The main reason for the law was to keep professional sporting events from being fixed. In 2018 though, PASPA was overturned and allowed for states to come up with their own laws and regulations regarding sports betting both online and in person.
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Unlawful Internet Gambling Enforcement Act (UIGEA)
The Unlawful Internet Gambling Enforcement Act (UIGEA) may have an intimidating name for those who are wishing to place a bet over the internet but the law is completely focused on the business of gambling as with the aforementioned laws in the previous sections. The UIGEA also happens to be primarily focused upon the banking transactions of gambling over the internet as it prohibits any sort of credit or debit payments by an organization to facilitate bets in the United States. While the Act excludes horse racing and fantasy sports, it has largely ended any chances of U.S. based online sportsbooks operating within the country. What’s more is that this Act was tacked into the SAFE Port Act rather than being passed as its own legislation, surprising many with its sneaky existence being pumped through the pipes of congress.
The UIGEA specifically targets those operating gambling businesses or facilitating bets for profit over the internet, however once again, does nothing to the simple act of placing a bet. While the UIGEA makes it difficult to provide banking transactions with an online sportsbook, it does not entirely wipe the option away as many web-sites lie outside of the UIGEA’s reach.
There are a number of trusted online sportsbooks which are located outside of the United States in which any U.S. citizen is able to visit and make transactions with. While a user may have no problem with using their credit or debit cards to deposit money into a sports betting account which is located elsewhere, receiving winnings back from the online betting service may require a different method of payment such as a check by mail, a bank wire transfer or a form of eWallet. Overall, citizens are able to bet with real money over the internet with a legally based site outside of the United States and ensure themselves of receiving their payouts when the time comes.
Online Sportsbooks which are in Compliance with U.S. Laws?
Here you can find some of the legal online sportsbooks that we recommend for you to use. These betting sites are all licensed and have been used by players in the US for years. These sites are legal to use and have no laws against them that would stop you from using them either.
Bovada Sportsbook
Player-Rated
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Bovada has been around for several years and have grown into one of the online sports betting giants. They have built a strong brand for themselves as one of the safest legal online sportsbooks out there. They abide by all of the rules that there are to operate in the US and you’ll never have to worry about the legality of them at all.
BetOnline Sportsbook
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One of the main reasons that BetOnline has become so popular is not only because you can place bets from your phone legally, but also the fact that you can do so with cryptocurrency. Not only does crypto have the quickest processing times and no processing fees, but you can use your phone to make deposits with crypto directly linking your wallet to your BetOnline account.
SportsBetting Sportsbook
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There are plenty of added safety measures when betting at SportsBetting.ag and you’ll never have to worry at all. Starting with all of the information you input when first signing up for your account, it is all stored exactly the same as your financial information. There are several link encryptions that secure both their servers as well as your web browser that you are accessing them from.
| Sportsbook | Bonus | US Players? | Visit | |
|---|---|---|---|---|
|
50% up to $250 | YES | Visit Bovada | |
|
50% up to $1,000 | YES | Visit BetOnline | |
 |
50% up to $1,000 | YES | Visit MyBookie | |
|
50% up to $1,000 | YES | Visit Bovada | |
 |
50% up to $500 | YES | Visit Xbet |