Online gambling in the US was initially reserved for horse racing, but the last decade has seen radical changes to America’s gaming regulations.
Multiple states have been proactive in legalizing additional online gaming options, including casino games, lotteries, daily fantasy games, and poker. This is after the 2011 declaration by the Department of Justice that the Wire Act of 1961 only restricted sports betting and did not limit other forms of online gambling.
The States of Delaware, Nevada, and New Jersey immediately legalized online gaming for poker and casino games. This legalization was under the condition that providers acquire the proper online gaming licenses. Other states like Pennsylvania and West Virginia followed suit in 2017 and 2019, respectively, while Michigan recently legalized online casinos in 2021.
The Supreme Court sweetened the pot for online gaming providers with a landmark ruling on May 14, 2018, lifting the federal ban on sports betting enacted in 1992. The court decision was widely applauded and states that saw fit could legalize at their leisure. According to the American Gaming Association, 30 states have passed sports betting legislation and are now legally permitted to offer online or mobile sportsbooks. More states will join the fray in 2022 to reap the massive benefits of a liberalized online gaming market. Such include:
California
California has four ballot initiatives scheduled for the November 2022 ballot. There are some who believe that if all four initiatives appear on the ballot at the same time they will cancel each other out. While this may be an issue, legalization appears to have a good chance of prevailing despite this.
Under the California Solutions to Homelessness and Mental Health Act, up to seven commercial gambling operators, including BetMGM, have proposed a mobile solution for the entire state. Another initiative, spearheaded by tribal operators, has already been approved for the ballot. Its terms call for the legalization of retail-only betting at tribal casino establishments and race tracks. The MGM management has stated unequivocally that there is a growing demand in California for the legalization of mobile sports betting, and 2022 is increasingly looking like the year this all comes to fruition. The MGM team acknowledged California gaming tribes and ensured that the initiative would not interfere with the tribe’s local operations.
North Carolina
SB 688, the legal sports betting bill, has had a smooth ride in the state’s legislature. The bill calls for the legalization of mobile and retail betting to be implemented statewide. It has already passed the Senate and is being reviewed by House Committees, with a high likelihood of becoming law in 2022.
In North Carolina, two tribal casinos received legislative approval for retail wagering in 2020. The casinos were open for business in March 2021. There are no foreseeable roadblocks to the pending bills in North Carolina’s progress toward legalization in 2022. It is expected that legalization will take place gradually, with an initial batch of 10 or 12 licenses provided for mobile-only licenses to ensure a controlled gambling environment.
Georgia
The Democrats stymied the legal sports betting bill in 2021 due to a disagreement over a voting rights bill. This means that the voters have to make the mobile wagering legalization decision in Georgia. 2022 will see statewide legalization decided through a popular ballot. Georgian lawmakers and the state professional sports teams have a consensus on the proposed legal framework. A few issues must be resolved before legalization, but no major obstacles stand in the way of the sports betting bill. Georgia is said to be planning to follow a similar model to Virginia and Tennessee in terms of lottery licensing for online operators.
Massachusetts
The state is home to some of the largest betting companies in the United States, including DraftKings. All indications are that most state legislators will support the legalization bill, with no major issues impeding its passage in 2022. Only a small number of lawmakers are divided on legalization, but sports betting remains a non-controversial issue. The state is also under pressure from neighboring states that have legalized sports betting, such as New York and Connecticut. Residents of Massachusetts are already crossing state lines to enjoy online gambling in neighboring states, making it impractical not to legalize such operations. The state is already losing a significant amount of revenue to neighboring states. According to local gambling operators, Massachusetts has a large gaming industry with well-known sports betting brands. There is no logic in failing to pass the bill.
Conclusion
Almost 80% of US states have legalized or are in the process of legalizing online gaming. While state-wide betting and mobile sportsbook apps are preferred, more conservative states begin with in-person wagering and sportsbooks. Other states, including Alabama, Kansas, Maine, Minnesota, Missouri, and Oklahoma, are closely following the legalization process in other states and are projected to join in soon. Given that sports betting is proving to be a viable way to offset state budget losses, the new decade is likely to see all American states integrated into the vast world of online betting.
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