The legality of online poker in the U.S. was a big issue for many. Especially with online poker’s increasing popularity. However, this article will discuss how the legality of online poker in the U.S. has been impacted. Listed below are some ways the law is being applied to the gambling industry in the U.S.: How the DOJ and other regulators will enforce the laws that apply to online poker.
Legality of online poker in the U.S.
Since online poker first emerged in the late 90s, legalities have been a constant source of controversy. First, there was the Unlawful Internet Gambling Enforcement Act, which would have banned online gambling. It was a part of the SAFE Port Act, but no senator was able to read the bill’s final text before it passed. Read the full text of the law here. It has been nearly three years since that bill was passed, but Kentucky is still the state where legal online poker is most likely to remain illegal.
In 2008, Kentucky lawmakers took a particularly tough stance on internet gambling, seized 140 domain names and sued PokerStars for $870 million. Although the lawsuit won the appeals court, Kentucky could still take the case to the state’s highest court. In 2018, several states pushed for legal US online poker. Meanwhile, New Jersey, Nevada, and Colorado are working toward legalizing the industry. Despite the opposition from politicians, online poker is expected to be legal in both states soon.
Increasing popularity of online poker in the U.S.
The booming industry for online poker started in 1998 when the Internet was just getting started. It is believed that the first online poker game was played for real money. The success of poker player and accountant Chris Moneymaker in qualifying for the World Series of Poker tournament through an online qualifier and winning a $2.5 million cash prize triggered an explosion of the online poker industry in the U.S. and abroad.
Since the lockdown, online poker has seen a 30 percent increase in revenue. The reason for this increase is attributed to poker tournaments. However, the UIGEA banned payments to sites that operate illegally, which was bad news for the industry. The lockdown resulted in the closure of most publicly-traded online poker sites. The Supreme Court later reversed the ban, which resulted in the growth of the online poker market in the U.S.
Regulation of online poker in the U.S.
The regulation of online poker in the United States is largely in the hands of state governments. States such as New Jersey, Delaware, Pennsylvania, and Nevada have regulated markets for online poker. These states abide by local gaming regulations and pay taxes to the state government. Meanwhile, unregulated sites are often offshore or located outside of the United States. Unregulated sites violate US gaming laws and are illegal to operate within the U.S. If you are wondering whether an online poker site is legal in your state, here are some basics to look for.
The United States has been grappling with the issue of online gambling for quite some time. It first appeared in the late 90s and experienced meteoric growth. The first attempt to ban online gaming was the Unlawful Internet Gambling Enforcement Act (UIGEA). It was part of the SAFE Port Act and no senator read the final text before it passed. Here is a link to the text. Despite the many legal issues surrounding online poker, the UIGEA still remains a concern for many states.