Before 1960, organized crime was prevalent in the gambling market in the USA. To help deal with the crime, the Federal Government passed several pieces of legislation to give the laws some grip in dealing with the crime.
The laws became commonly known as the Federal Wire Act (1961). Anyone who knowingly used a wire communication facility to transmit money for bets or wagers was breaking the law. They would be fined not more than $10,000 or imprisoned for a maximum of two years. The internet was not yet developed at this time.
The law continued in the age of the internet
About two decades later, the internet was invented. The first online casino was launched in the mid-1990s, but the only existing law was the Federal Wire Act (1961) plus other state laws. By the start of the second decade in the 2020s, many more states had launched online casinos. For example, Gun Lake online casino launched in 2021.
In 1992, congress passed a law that prohibited the states from legalizing sports casinos. The law was known as the Professional and Amateur Sports Protection Act. Another law that prohibited online betting was passed by congress in 2006, known as the Unlawful Internet Gambling Enforcement Act.
The supreme court ruling in 2018 overturned the Professional and Amateur Sports Protection Act (1992). From then on, each state was free to pass its own gambling laws. The states were free to legalize both land-based and online betting to help the industry thrive.
Not every state took the advantage
Despite the historic supreme court ruling, not every state took advantage and quickly passed the laws. Some states like Michigan, Pennsylvania, and New Jersey were among the first to legalize online betting in the USA. The online gambling market was growing, and the crypto mining stakeholders were working with online casinos to establish crypto casinos.
The states that didn’t regulate online gambling did so due to various factors. Some factors are due to religion, while others are due to legislation. For example, the state of Utah is regarded as a highly religious state. Due to this, the legislators have no option but to respect the majority. Another example is Hawaii, where the majority of the citizens do not support gambling. Most Hawaiians believe gambling destroys family morals.
The other states that haven’t established gambling guidelines have nothing to do with religion or the majority of citizens’ opinions. Most of them have to with legislators themselves. They have a higher level of unwillingness to bring bills or pass them. Most of them, however, have a limited form of gambling. These are states like Tennessee, Minnesota, Georgia, Idaho, Vermont, New Mexico, and New York.