Overview of Gaming Law

Gaming law involves the licensing and regulating of gambling activities, including casinos, lotteries, online gaming, and sports betting. Gaming law attorneys help gaming operations maintain legal compliance, including taxation and reporting requirements.

Most gaming law falls under the jurisdiction of state gaming commissions. Under the Indian Gaming Regulatory Act (IGRA), Native American tribal governments regulate gaming on tribal lands. Federal law regulates interstate wire activity involved in gaming. For more information, contact a local gaming law attorney.

What Is Gaming Law?

Gaming law governs gambling, betting, lotteries, and wagering. Businesses in the gaming industry have to comply with a complex web of state, local, and federal regulations.

Gaming companies must stay up-to-date with changing licensing requirements. Laws governing finance, taxes, intellectual property, and employment are all relevant to gambling businesses. State commissions monitor gaming operations and handle enforcement actions for violations of state gaming laws.

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Who Regulates the Gaming Industry?

Gaming is a heavily regulated industry and can involve various jurisdictions. Gambling and gaming regulations depend on the type of gaming and where it takes place. Agencies regulating gambling can involve state, federal, and tribal governments.

State Gaming Regulations

Each state regulates gambling activities within its jurisdiction. Some states strictly prohibit gambling activity, while others allow it. Other states restrict gaming based on geographic area.

For example, while Utah has strict gambling prohibitions, its neighbor, Nevada, attracts visitors from all over the world to Las Vegas for casino games, sports betting, and internet gambling. New Jersey limits casino operations to Atlantic City.

State gaming control boards regulate state gambling, while state lottery commissions control lottery gaming. Some county and local governments also have a role in regulating local gaming.

Native American Gambling Regulations

Native American governments have tribal sovereignty to regulate gaming on their land and can allow gambling even when the state prohibits it.

The Indian Gaming Regulatory Act (IGRA) established the National Indian Gaming Commission regulatory authority.

Federal Gaming Regulations

The federal government has the authority to regulate interstate activity. Federal agencies can regulate and monitor gaming activities and wagering payments through wire communications. The federal Wire Act of 1961 prohibits using wire communication facilities to transmit wagers or bets across state lines.

Many of the federal gaming regulations target criminal activity. The Illegal Gambling Business Act of 1970 makes it a federal crime to violate state gambling law, involving a group of five or more people who operate for more than 30 days. The Racketeer Influenced and Corrupt Organizations Act (RICO) is another way law enforcement can go after criminal enterprises engaged in gambling and other criminal activity.

Congress passed a federal law prohibiting most sports betting nationwide. However, the U.S. Supreme Court overturned this law in its 2018 decision Murphy v. National Collegiate Athletic Association. This case allowed states to regulate betting on sporting events. Now, a majority of states offer in-person and online sports and fantasy sports betting.

Types of Legalized Gaming in the U.S.

There are many forms of gaming in the United States. Some of the most common types of legalized gaming include:

• Lotteries (including scratch cards and multi-state games like Powerball)
• Gaming machines (including video poker and slot machines)
• Horseracing
• Sports betting (including internet gaming)
• Casino games (like craps, blackjack, and poker)
• Bingo
• Raffles
• Online gaming

Most states allow gambling to raise money for charitable organizations. However, there are still strict regulations for charity raffles, casino nights, or bingo. Most states also allow lottery gambling, while a majority of states have adopted sports betting.

About half of the states have commercial casino operations on state land. Most states have one or more casinos operating within state boundaries. Nevada has the most gaming casinos, followed by Oklahoma and California.

Social gaming involves small groups of people gambling for small amounts of money in informal settings. Friends gathering for a poker night is an example of social gaming. Many states exempt such activities from gambling regulations.

The Licensing and Suitability Process

The licensing process varies by state and industry. Getting a license to open a casino is very different from getting state approval for a sweepstakes game. First, make sure the type of gaming operation you want to start is legal in your state. Your state gaming board will have the application and licensing information required, including eligibility, documentation, tax reporting, and monitoring requirements.

To be eligible for a gaming license, you may need to be a resident of the state and pass a background check. There are strict documentation requirements for gaming operations and finances, which include state and federal tax reporting and financial statement disclosure. Gaming finances are subject to monitoring and auditing.

States also have strict surveillance and security requirements. Security promotes customer and worker safety. Security and surveillance can help prevent fraud and identify criminal activity. Surveillance also ensures transparency and fairness.

Any modifications, transfers, or changes in ownership are subject to state approval.

Consult an Experienced Gaming Lawyer

For questions about getting a gaming license, talk to a local gaming attorney. An attorney can also help if you are facing tax or criminal charges for violating state gaming laws.

State and local gaming laws are complex, and the regulations change regularly. It is difficult to stay in compliance while trying to run a profitable gaming operation. A gaming law attorney can help you stay in compliance with gaming regulations and state and federal law. For legal advice about gaming, talk to a gaming law attorney.