Laws Regulating Sports Betting in the U.S.

The United States of America has quite a few laws that dictate the availability of sports betting. There are going to be a few federal laws that users need to know about and these statutes have sweeping nationwide impacts on the organizations that would facilitate sports betting. The UIGEA is a financial regulation, the Wire Act monitors and regulates communication facilities, and the PASPA regulates sportsbooks and other gaming establishments. These laws work in tandem to prohibit almost all American companies from accepting wagers on sports. Also, some states have their own gambling laws that oversee the use of the internet by their residents. The best part about the international online sportsbooks is they avoid the hassle of American law, and accept bets from users worldwide.

The Unlawful Internet Gambling Enforcement Act was passed back in 2006. Its original intent was to regulate the financial transactions between gambling organizations and banks that reside within the US. The federal government was using this law to impose oversight on any transactions to gaming websites and they tried to stop any involvement of creditors in the US with betting websites. This law was passed through as a port barrel project on an anti-terrorism bill within the US, which is as wacky as it sounds. This law was never read by congress and it was still passed through unanimously. The online sportsbooks can still accept electronic payments from customers in America, but the law has an impact to customers requesting a payout. With UIGEA in effect, the sports betting sites are not going to be able to offer an electronic withdrawal to a credit or debit card, but they have no problems sending a check, rapid transfer, or many other payout variations to Americans.

The Wire Act was written back in the 1960s with the intent to stop illicit bookmaking across the United States. The Federal financial institutions had worries over the consumer credit industry and the collections of individual debt was on the rise due to outstanding gambler balances. The government passed a series of anti-racketeering laws in order to combat mafia activity. These laws were targeting any individual or organization that accepted bets from players, and they do NOT target the person (you) who is placing a bet. It’s would’ve been impossible for the government to enforce a law that targets individual players and so they only went after bookmakers. The best sites on the internet for sports betting are based in foreign countries and the jurisdiction of American prosecutors doesn’t go far enough to shut them down. These great services can accept information regarding bets over the internet and this law doesn’t affect them or create any legal repercussions for their members.

The Professional and Amateur Sports Protection Act is a law that was passed by the Federal government of the United States back in 1992. This law is an oversight measure that limits the availability on sports betting across the nation. The national law allows for a couple of states to continue to offer their residents a legal state-sponsored sportsbook, but disallows all the rest unless specifically authorized. Nevada and Delaware were some of the states that retained an exception to the law and they only offer their services to their respective residents. This law has a drastic effect on American companies, but those based internationally have found themselves in a unique position. They can fill the void left by US companies and offer a legal opportunity to make a bet on the NFL championship contenders and the other games and tournaments from around the world.