Gambling & Gaming Law
Indian Gaming Regulatory Act, state gaming commissions, online betting, and sports wagering.
Overview
Gambling and gaming law regulates the operation of casinos, lotteries, sports wagering, and online gambling throughout the United States. The regulatory framework is primarily state-based, with federal law establishing certain overarching rules. The Indian Gaming Regulatory Act (IGRA) of 1988 provides the framework for tribal gaming on Indian lands, establishing three classes of gaming and requiring tribal-state compacts for Class III (casino-style) gaming.
The Supreme Court's decision in Murphy v. NCAA (2018) struck down the Professional and Amateur Sports Protection Act (PASPA), which had effectively limited sports betting to Nevada. Since that decision, over 30 states and the District of Columbia have legalized some form of sports wagering. The Wire Act of 1961 prohibits using wire communications for interstate sports betting, while the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 prohibits financial transactions associated with unlawful internet gambling.
State gaming regulation typically involves licensing requirements, background investigations, gaming tax rates, responsible gambling mandates, and oversight by state gaming commissions or control boards. The rapid expansion of online and mobile sports betting, daily fantasy sports, and iGaming (online casino games) has created new regulatory challenges regarding consumer protection, problem gambling, advertising standards, and interstate compacts for shared liquidity in online poker.
Key Statutes
| Statute | Citation | Summary |
|---|---|---|
| Indian Gaming Regulatory Act | 25 U.S.C. §§ 2701–2721 | Establishes the framework for tribal gaming, creating the National Indian Gaming Commission and requiring tribal-state compacts for Class III gaming operations. |
| Wire Act of 1961 | 18 U.S.C. § 1084 | Prohibits the use of wire communications for transmitting bets or wagering information across state lines for sporting events. |
| Unlawful Internet Gambling Enforcement Act (UIGEA) | 31 U.S.C. §§ 5361–5367 | Prohibits gambling businesses from knowingly accepting payment in connection with unlawful internet gambling, targeting payment processors rather than individual bettors. |
| Johnson Act (Gambling Devices Transportation Act) | 15 U.S.C. §§ 1171–1178 | Prohibits the interstate transportation of gambling devices except to jurisdictions that have legalized such devices and filed exemptions. |
Key Cases
Murphy v. NCAA
584 U.S. 453 (2018)
Struck down the Professional and Amateur Sports Protection Act as a violation of the anti-commandeering doctrine, opening the door for states to legalize sports betting.
Seminole Tribe v. Florida
517 U.S. 44 (1996)
Held that Congress cannot abrogate state sovereign immunity to allow Indian tribes to sue states in federal court to compel compact negotiations under IGRA.
California v. Cabazon Band of Mission Indians
480 U.S. 202 (1987)
Held that states could not regulate gaming on Indian lands absent congressional authorization, leading directly to the enactment of IGRA.
Key Regulations
National Indian Gaming Commission Regulations
NIGC (25 CFR Parts 501–599)
Federal regulations governing tribal gaming operations, including gaming ordinance approval, management contracts, facility licensing, and auditing standards.
FinCEN Anti-Money Laundering Rules for Casinos
Financial Crimes Enforcement Network (31 CFR Part 1021)
Bank Secrecy Act compliance requirements for casinos, including currency transaction reporting, suspicious activity reporting, and customer identification.
Common Issues
- Tribal-state compact negotiation and good faith requirements
- State sports betting licensing and regulatory compliance
- Online gambling platform licensing and geofencing requirements
- Gaming tax rates and revenue allocation disputes
- Problem gambling programs and responsible gaming mandates
- Anti-money laundering compliance for casino operations
- Fantasy sports classification (skill vs. chance)
- Interstate compacts for online poker liquidity sharing
State Variations
Gambling regulation varies enormously by state. Some states (Nevada, New Jersey, Pennsylvania) have comprehensive legal frameworks for casino gambling, sports betting, and online gaming. Others (Utah, Hawaii) prohibit virtually all forms of gambling. State gaming tax rates range from under 10% (Nevada) to over 50% (some states for online sports betting). Sports betting regulatory models differ between competitive licensing and state-operated systems. Some states restrict mobile sports betting to within casino premises, while others allow statewide mobile access. Charitable gaming, bingo, and lottery regulations are entirely state-specific.
Resources
National Indian Gaming Commission (NIGC)
Federal regulatory agency overseeing tribal gaming operations, ensuring compliance with IGRA and approving gaming ordinances.
International Association of Gaming Advisors
Professional organization for gaming law attorneys and regulators, providing education and policy resources on gambling regulation.