United States

Created in 2006, UIGEA (the Unlawful Internet Gambling Enforcement Act) effectively put an end to online gaming within the US. A slew of big brands pulled their services and licenses from the jurisdiction, with many hot footing it to Kahnawake Mohawk Territory and Malta. Smaller operatives folded completely, collateral damage of a last minute bill that many dispute on the grounds of unreasonable inclusion with the Ports Act of the same year. Despite its intent, UIGEA only prohibits offshore providers from targeting citizens of the US. It does not, at present, prohibit any US national from wagering on such sites.

The responsibility for gambling regulation remains disputed, as in some parts of the US, State Law overrides Federal Law, thus making it unenforceable. Such is the case of the Wire Act 1961, originally designed to prevent service providers from accepting wagers over the telephone. DOJ (the Department of Justice) maintain the act applies to all formats of sports betting, however, horse race betting is permitted in certain states, under the Interstate Horse Racing Act. Efforts to ban interstate online gambling have proved unsuccessful in many States. In January 2009, the Kentucky Court of Appeals overturned a decision for authorities to begin the seizure of gambling sites, with voters outnumbered 2-1. Washington D.C hit headlines in February 2011, when permission was granted for the Charitable Games Control Board to operate both a lottery and casino games online. August 2011 saw the launch of FairPlayUSA, a Nevada coalition established solely to push Congress into reconsidering the ban on online poker and casino games. The move would allow State governments to impose regulations or prohibition as they see fit.

Nevada State Gaming Commission is currently one of the only organizations in the US to continue granting licenses for online operations – with the exception of the New Jersey Gaming Board. In stark contrast to offshore licensing procedures, the entire review process can take from 1-2 years, involving a number of judicial hearings and background investigations. All applicants must conform to criteria set out by NSGC, which include US citizenship and residency within Nevada State. An NSGC Online Gaming License entitles a company to operate solely within the jurisdiction of Nevada, offering both casino and sports betting services. Taxes are applicable to gross revenues, currently ranging between 3.5 to 6.75%.

Oregon State Department of Justice currently award temporary licensing for charitable endeavors, providing no monetary prizes are offered. Licenses are granted on a class basis, taking into account the predicted revenue of the venture and priced accordingly. A Class D Charitable Gaming License costs a mere $20, with an annual handling limitation of $20,000, whereas a Class A Charitable Gaming License features no annual handling limitation – priced at $200. In order to qualify, the operator must first register with the charity to which funds will be donated, thus obtaining an official affiliate number to progress the application. Additional evaluations will take into account the background of any individual(s) appointed Treasurer for the venture, as well as payment terms established with the chosen charity.