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Gambling Laws in the US vs Asia | Markets Herald

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Gambling Laws in the US vs Asia | Markets Herald

More than 80% of countries allow some form of gambling, although most markets are regulated with rules, at the very least, on minimum gambling age. The advent of online gambling has changed the gambling landscape because it offers easy access to players from around the world, forcing many governments to regulate their own gambling industries in response. This has also enabled those countries to benefit from the receipt of gambling taxes.

Perhaps surprisingly considering it is home to both Las Vegas and Atlantic City, which are two of the biggest gambling destinations in the world, many states in the US still have closed gambling markets. 

Online Gambling

Online gambling started in the 1990s but really started to become popular in the 2000s and 2010s. Recently, it has seen yet more changes and advances, thanks to the widespread introduction of 5G. Some of the best online casinos now offer features like live dealer games and cryptocurrency deposits.

According to poker writer Andreea Stanescu, even countries where online gambling is illegal like Malaysia have seen an increase in the popularity of online casinos.

The US Market

The US market is one of if not the biggest gambling markets in the world. Its population of nearly 350 million people generates a gross gaming revenue of nearly $100 billion a year. This includes all forms of gambling so the figures include lotteries and sports betting as well as casinos, and they do include offline as well as online gambling.

According to the Wire Act of 1961, online gambling was legally questionable. A decision by the Supreme Court in 2018 effectively meant that states could determine their own gambling laws, although the groundwork for this had been laid some years earlier.

The US is also bound by the Indian Gaming Regulatory Act of 1988, which effectively allows tribes to operate casinos and other gambling halls on their land. In some cases, states have attempted to regulate online gambling but the decision has been blocked or made more difficult by tribal casinos.

These laws mean that states in the US have very different gambling regulations. A small handful regulate all forms of gambling, while some explicitly prohibit all forms of gambling. Most fall in between, with lotteries and tribal gambling operations operating legally, while other forms of gambling are illegal. To get a slightly clearer picture, we will take a look at some significant states. 

Nevada

Perhaps unsurprisingly, Nevada has the most open gambling laws of all states. All forms of gambling have been legal for nearly a century, which is why Las Vegas is such a popular destination with US as well as global visitors. That isn’t to say there are no rules in the state. Any gambling hall must be licensed to operate and it must follow other restrictions.

Players must be aged 21 or over to place bets and there are anti-money laundering restrictions in place. Online gambling is also legal and Nevada is home to hundreds of online casinos and sportsbooks.

New Jersey

New Jersey is home to Atlantic City, which is the second biggest gambling city in the US. All forms of gambling are legal in Atlantic City, which has effectively been labeled as the gambling city in the state.

However, casinos and online casinos cannot be located anywhere outside the city, which means that online casinos in New Jersey must have their servers located here. And they must be located within the premises of licensed casinos. Sports betting is legal in the state and more than a dozen licensed online sportsbooks are operating within New Jersey.

California

California has more than 70 Indian casinos across the state, as well as a handful of mini-casinos. However, commercial casinos that are not operated by or in partnership with tribes, are prohibited. All online gambling is also prohibited in the country’s most populous state, but keen gamblers can enjoy the California State Lottery, and some parimutuel betting, and they can place wagers in California card rooms.

Texas

Texas has similar laws to California. Tribal casinos are legal while commercial casinos are prohibited. Players can also play in tribal card rooms, but online gambling is not regulated in the state. Texas has seen several attempts in the past few years to change the legal status of gambling. This push will likely continue in 2025, with the primary aim being the regulation of sports betting. However, this will need to get through the legislature and it will also need to pass a public referendum. The process can take years to complete, even if it is successful.

Florida

Florida legalized sports betting in 2021, although a long court battle has only just been ceded, leading to the reopening of the Hard Rock betting app, which is the only regulated sports betting app in the state. It is possible that more sportsbooks will open in the state in the coming years, and Hard Rock, which is owned by the Seminole tribe, has said they welcome more sports betting apps. Casino gambling is legal on tribal lands and players can partake in parimutuel wagering. There is also a Florida state lottery.

New York

As well as tribal casinos, New York has legalized commercial casino operations. Four have been opened since 2013, and there are a couple of racinos. The state has also said that it will grant new licenses, and there have been around a dozen or so multi-billion dollar proposals put forward in different parts of the state. Online casinos are not yet permitted in the state, but sports betting was legalized in 2013 with online sports betting gaining approval in 2022. It is possible that online casino gambling may follow in the coming years.

Asian Market

The Asian gambling market is viewed as a hot prospect within the industry, thanks primarily to a population of more than 4.6 billion people. Some countries on the continent have very strict gambling policies, but some countries have long histories of gambling and real money games that have transferred online.

As is true when visiting any country or region, visitors should check the legality of online betting before trying to access websites. And visitors should always ensure they are attending reputable casinos and gambling halls.

China

Strictly speaking, all forms of gambling are illegal in China and have been since the Communist Party took charge in 1949. This means that online gambling is illegal, including using offshore sites, and access to these sites is restricted. Some players get around this by using VPNs, although only some VPNs are permitted by the Chinese government.

State-run lotteries are legal in the country, however, and back-street gambling is also common. The only exception to China’s gambling prohibition is in the city of Macau, where gambling has been allowed to entice tourists.

Japan

Japan has similar gambling laws to China. Which is to say most forms of gambling are illegal. Some exceptions allow for betting on horse racing and some motorsports. And, in 2018, a new law was passed that allows for gambling in certain games including poker and baccarat. The country’s first casino is due to open in 2029 in Osaka, but it remains to be seen whether any other casinos will be permitted.

India

India allows its states to decide their own gambling laws. Goa has legalized casinos, along with the states of Sikkim and Daman. Elsewhere, though, gambling can lead to fairly substantial fines and potentially even prison sentences, if players are found guilty. Offshore gambling sites are accessible and these are popular with some players in the country.

Saudi Arabia

Saudi Arabia has a strict moral code driven by Islamic law. This prohibits any form of gambling and the government does enforce the law. Parties found guilty of gambling in Saudi Arabia can face punishments including flogging and imprisonment. Because gambling is prohibited, there are no casinos, and while horse racing and camel racing are popular spectator sports, no bets can legally be placed.

Malaysia

Malaysia has mixed gambling laws. Lotteries, casinos, and horse racing are legal in the country but online betting and sports betting are illegal. Gambling is very popular in the country. There is a single casino in Malaysia, Genting Highlands, and there are calls to close it down, so it may only have a limited future.

Conclusion

Gambling laws vary across the world. It is legal in some forms in most parts of Europe, as well as in some states in the US, with others looking to legalize gambling in some forms. However, a lot of countries in Asia prohibit some or all forms of gambling, and the penalties can be very severe if people are found to be gambling. Visitors should always check and know the gambling laws of any country, or state, they are visiting, to ensure they don’t fall foul of local restrictions.

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