Ten States Consider Internet Gambling Legislation

Internet gambling is currently legal and operating in three, U.S. States – Nevada, New Jersey and Delaware. Additional states, perhaps realizing that the likelihood of federal legislation on the topic anytime soon is remote, considered their own internet gambling legislation this past year. Proposals for new, or expanded internet gambling have, or will likely be considered by California, Colorado, Hawaii, Iowa, Louisiana, Massachusetts, Mississippi, New Jersey and Pennsylvania.

Current federal law only permits states to allow internet gambling to be conducted on an intra-state basis. The hope of states such as Delaware, with low population bases, is to enter into agreements, or compacts, with other states to allow cross-border acceptance of internet wagers. To date no such agreements have been entered into and the pending states’ legislation seems to focus on each state conducting its own intra-state internet wagering.

New Jersey’s internet gambling sites went live in late November, 2013 and generated $8.36 million in internet gambling revenue through the end of the year. While these numbers may have been lower than some analysts anticipated, many of the above states’ lawmakers will be watching New Jersey’s revenue closely with an eye towards their own potential legislation. New Jersey is considering expanding its current legislation so as to permit its intenet sites to accept wagers from other states and countries.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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