US Online Sports Betting

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A new era of legal online sports betting in the United States began in May 2018. The U.S. Supreme Court ruled the Professional and Amateur Sports Protection Act of 1992 (PAPSA), which outlawed sports betting, was unconstitutional.

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With PAPSA no longer in effect, states can now offer legal, regulated sports betting, with each state able to establish its own laws. The Supreme Court’s reversal of PAPSA set off an online sports betting boom in the U.S.

As of August 2021, legal online sports betting is available in thirteen states: Michigan, Nevada, New Jersey, New Hampshire, Pennsylvania, Colorado, Rhode Island, Iowa, Indiana, Tennessee, Oregon, Illinois, Washington D.C, Virginia and West Virginia. All of these states offer mobile sports betting from anywhere within state borders, on state-regulated platforms. The next states to launch mobile sports betting will be New York, Maryland, Connecticut, and Arizona.

Several other states have passed legislation to legalize online sports betting, with the actual launch of those platforms yet to come.

The U.S. sports betting industry appears to be in the beginning stages of a boom period, and those states offering legal mobile betting are poised to be at the forefront.

New Jersey, for example, has seen 80 percent of its sports betting handle produced from online and mobile bettors since launching its mobile platforms in August 2018. New Jersey’s overall sports betting revenue is second only to Nevada, and the impact of mobile betting on those totals could be an indicator of things to come in other states.

The first two companies to launch mobile sports betting in New Jersey, DraftKings Sportsbook and FanDuel Sportsbook, lead the U.S. in mobile sports betting revenue. Both companies are aggressively expanding U.S. operations and are in a position to lead the rapidly growing market.

Legal sports betting (both retail and mobile) produced nearly $1.4 billion in revenue in the U.S. from June 2018 through March 2020, and those numbers should continue to rise.

US Online Casinos

Legal, real-money options for online casino games aren’t as far-reaching as mobile sports betting in the U.S. so far.

Legal and regulated real money online casino games are live in New Jersey, Delaware, and Pennsylvania. These online offerings include the most popular games normally seen on the floor of land-based casinos, such as slots, blackjack, roulette, craps, and casino poker games like Pai Gow Poker and Caribbean Stud.

Delaware was the first U.S. state to legalize online gambling, doing so in 2012. New Jersey and Nevada followed suit in 2013, with Pennsylvania becoming the fourth in 2017. Nevada’s legislature only allows for online poker, and not other casino games.

In the three states that do offer legal online casino games, all online and mobile platforms are tied to land-based properties in some fashion. In Delaware, the state’s three land-based casinos offer online gambling through a unified platform, operated by 888 Holdings.

New Jersey hosts more than 20 online casinos, all tied to retail properties in Atlantic City. Pennsylvania, the newest player in the online casino game, currently has four casinos offering real-money games, and more to come.

Online casino revenue hasn’t made the same impact as sports betting, but both New Jersey and Delaware saw an upswing in revenue growth for 2019.

US Online Poker

The same four states (Nevada, New Jersey, Delaware, and Pennsylvania) that allow for online gambling aside from sports betting also offer legal online poker.

WSOP.com is the biggest online poker site in the U.S. and is the only legal real money online poker network allowing for players from multiple states to play against each other. WSOP Nevada, WSOP New Jersey, 888 Poker NJ, and the 888 Poker network of sites in Delaware all have access to a shared online poker client, which allows for players within those states to play against a merged player pool.

While WSOP.com is the only option for online poker in Nevada, New Jersey has other options in addition to the WSOP/888 network. Those platforms include PokerStars NJ and a partypoker NJ network.

Pennsylvania is expected to see several of its approved online gambling operators roll out online poker clients within the next year. The first of these platforms, PokerStars PA, launched in November 2019. For both PokerStars and partypoker, their U.S. poker clients only allow access to players from within the states in which they’re based and are not linked to either company’s international poker sites.

The prospects of future shared liquidity/interstate poker networks is uncertain. In January 2019, the U.S. Department of Justice issued a reversal of opinion on its 2011 interpretation of the 1961 Wire Act. The 2011 ruling effectively legalized gambling transactions conducted across state lines, as long as those transactions weren’t related to sports wagering. The 2019 reversal of that ruling is now attempting to restore the original language of the act.

If enforced, all state-regulated online poker sites would only be able to offer access to players located within the borders of their respective states.

Online Sweepstakes Casinos, Sportsbook & Poker Sites for Cash Prizes

For players who don’t reside in states with legal, regulated gambling options, online sweepstakes sites offer casino games, sports, and poker to all U.S. states, apart from some restrictive regulations in Washington state.

The biggest names in sweepstakes are Chumba Casino and Luckyland Slots owned by VGW Malta Limited and Global Poker by VGW GP Limited.

All of the sites use the same model, which allows players to purchase “Gold Coins” for use in play-money games. Gold Coin purchases also come with a corresponding amount of “Sweeps Coins,” which can be used to play in sweepstakes games.

These sweepstakes games include the full gamut of casino games at Chumba Casino, and on Global Poker players have access to a variety of stakes of poker cash games and tournaments. The Sweeps Coins used in these games are redeemable for cash prizes.

With the sweepstakes model in place, the games on Chumba Casino and Global Poker amount to mini-sweepstakes games. Sweeps Coins can’t be purchased directly, but come as a gift whenever Gold Coins are purchased.

Both Chumba and Global are popular options for casino gaming and poker throughout the U.S. Other platforms using the Sweepstakes model include Luckyland Slots, B-Spot, and FendOff Sports.

Daily Fantasy Sports

The legality of Daily Fantasy Sports in some parts of the U.S. is unclear. DFS are regulated and explicitly legal in many states, some of which include New York, Pennsylvania, New Jersey, Ohio, Colorado, and Massachusetts, among others.

The two biggest players in DFS, FanDuel, and DraftKings, operate in those states where DFS has been legalized, along with several others. FanDuel and DraftKings operate in about 80 percent of U.S. states, even with some of those states having an unclear position about the legality of DFS.

DFS are illegal to play in Arizona, Washington, and Montana. Most DFS platforms also steer clear of operating in the states of Alabama, Idaho, Hawaii, and Nevada, due to attorney general interpretations of law in those states.

Legislation surrounding DFS in the U.S. is ever-evolving. While sports betting revenues have surged in the states in the past two years, DFS revenue growth has leveled off a bit since the mid-2010s. The DFS market is still steadily growing, however, with U.S. DFS revenue accounting for nearly 60 percent of the global market.

DraftKings and FanDuel own 90 percent of the U.S. DFS market, while outlets like Yahoo Daily Fantasy and FantasyDraft are smaller alternatives.

Online Horse Race Betting

Online/mobile betting on horse racing has been aroun

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