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In states with licensed and regulated iGaming like New Jersey, Delaware, and Nevada, payment processors like PayPal are allowed. The Legality of US Online Casinos The legality of USA online casinos has been debated since the first games appeared on the internet in the mid-1990s. The first federal legislation to pass after the advent of Internet was the from 2006, which banned payments on all forms of gambling that were considered illegal under the 1961 Wire Act. A common belief is that the UIGEA made online gambling illegal when in actuality it only gave authority to enforce existing laws. The issue was clarified in late 2011 when the Justice Department confirmed conventional wisdom that had existed for nearly two decades by declaring that the Wire Act was only applicable to sports betting and not casino table games or poker. The 2011 decision effectively put the legality question on the shoulders of the states to license, regulate, and tax online US casinos and card rooms. Some states have laws on the books expressly prohibiting US online casinos; some do not.

Delaware and New Jersey have fully legalized online casinos, but those players are permitted to play only at online casinos expressly endorsed by the state. After the 2011 U.S. Justice Department opinion, lawmakers began to push other ways to address internet gambling. Notably, “ Restore America’s Wire Act” (RAWA) was introduced to ban online gaming across all 50 states.

The bill would restore earlier interpretation of the law and ban most forms of unregulated gambling on a federal level. The chances of RAWA or any other federal ban on online gambling remain low.

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