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Online Sports Betting in the US

Online sports betting in the US has never been straightforwards. It's always been an oxymoron that the US likes to call itself the "Land of the Free", and yet there are so any things which seem to point to the opposite direction. The so called "sin taxes" which seem derive their existence from the days of the Puritan forefathers. There's a reason we kicked them out of the UK and sent them off to the US. For example, for drinking you need to be at least 21 years old.

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Introduction: Online Sports Betting in the US

And for gambling, the situation is even more complex and difficult to navigate. And with the internet age, online sports betting in the US is still playing catch-up to other countries around the globe. The legal complexities surrounding gambling in the US are a pain for all gamblers there. There are endless disagreements with regard to legal interpretation and implementation, and huge differences across state lines. Until we see some clarity with this (don’t hold your horses here) then things will always be a bit murky. If you would like to win money simply with gambling, take a look at our collection of the online jackpot sites.

Federal Regulations

One means of helping us understand the US position of gambling is to look back at gambling’s fraught history in the country. This can get both complicated as well as seeming overly picky. So bare with us here. Going back before the days of www., the US argued against gambling by citing the Interstate Wire Act. This forbids sports gambling between states using telephone devices. There was no internet when this law was passed. So today many lawyers question its continued relevance for online sports betting in the US.

The Wire Act in relation to Sporting Bets

Yet another question was whether this law appertained to wagering on all forms of gambling or just online sports betting in the US. Back in 2002, the 5th U.S. Circuit Court of Appeals upheld a ruling in Louisiana upheld a dismissal of a lawsuit bought by two cheeky gamblers. They had been using the internet to gamble and claimed that the credit cards were in some way liable for their losses. In dismissing the case, the court rules that the Wire Act was only in relation to sporting bets. So we’re gradually moving forwards.

Then in 2006, The US Congress passed the SAFE Port Act. Though this was written expressly about the safety of US ports, some piddling interest groups managed to get gambling legislation tagged onto it. The Gambling Enforcement Act. This prohibited US citizens from using their credit cards, electronic transfers and checks to finance gambling activity. So now we’re moving backward again!

Online Sports Betting in the US: The Laws Regulates Funding

But it should be noted that the Gambling Enforcement Act only deals with HOW the internet gambling accounts are funded. This is not the actual betting process for all online sports betting in the US. Appearing on PBS News-Hour, the internet gambling law attorney, Lawrence Walters said, “The bill has no impact on the individual player’s activity. The bill is centered on restricting certain financial transactions, requiring that banks identify and block transactions going through their servers and their systems, and requiring that the actual sites, the internet gambling sites, stop and block these transactions.”

Appearing on the same segment was Keith Whyte, the executive director of the National Council of Problem Gambling, and he agreed with Walter’s statement, saying: “The bill is interesting, in that it doesn’t make gambling on the internet illegal. It makes funding your wager on the internet illegal. The financial transaction is what is criminalized here, not necessarily the state of play.” So, though things remain pretty muddy, it should be noted that so far no none has been formally charged with using online sportsbook sites to place sporting bets. “So far” being the operative words here. Like a cripple dancing, online sports betting in the US moves back and forth without direction. Or hope.

But It’s Legal Overseas

One of the world’s largest online sorts of betting sites is Bovada. They are “registered” in Antigua. They say that the only way for online sports betting in the US to take place is to use “offshore” companies like themselves. There is any number of sites like Bovada, and all based in places like Antigua or the Netherlands Antilles. They are able to set up banking processing and can accept deposits from players from around the world. As you can imagine, they have build up quite a following of loyal players.

Make it Stick!

But as you might expect, the US didn’t take this lying down. No sir! Though neither Federal or State authorities have never charged individual players, they have gone after the operators of sites. In 2012, the Feds indicted Calvin Ayre, who’s the founder of online site Bodog, which is actually the firm that owns and operates Bovada. Yet a whole five years later, with massive lawyers fees, the charges were dropped and he ended up pleading guilty to a misdemeanor charge of being an “accessory after the fact in the transmission of gambling information in violation of the federal Wire Act”.

Sites Must be Based Overseas

Then in 2013, a total of 17 people were charged with operating an illegal gambling ring in the US. But, they were actually in the US. So they definitely broke the law there. Online gambling sites are perfectly legal within themselves as long as they are “based” overseas. This last point has been argued by these tiny countries themselves against the US at international tribunals.

The WTO Has a Say

For example, in 2003, Antigua and Barbuda took a case to the World Trade Organisation. They claimed that the US gambling ban on internet gambling was in violation of their rights as WTO members. The WTO rules in their favor. But that didn’t stop the US from appealing. They lost again over a number of appeals over the next few years. Eventually, the US admitted that it’s anti-internet gambling laws were against WTO rules and agreed to pay a $1 million fine.

Online Sports Betting in the US: Considerations

So, what’s the deal here? Well, in spite of all the conflicting laws, you are perfectly within your rights to take part in online sports betting in the US by using an offshore company. Providing that those sites are legal, then there’s little chance of facing charges for any offence. The rub is that you can’t directly transfer funds to, or receive monies from any online betting activity. The workaround is that you first deposit funds with an overseas betting site. Then use that money for gambling. Likewise, as you can’t get your winnings directly, so you’ll receive a written check instead or receive funds via an online money transfer service. As you can see, with online sports betting in the US, we’re slowly getting there….but there are still some ways to go. You can still win the jackpot online anytime.