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2018 2006 1994 2020

The History of U.S. Online Casinos

The US has dramatically shifted its attitude towards online gambling in the last few years, but the story was very different before. For decades, all internet-based gambling activity was entirely prohibited in every state, apart from a few exceptions like online lotteries and scratchcards.

Since each state became authorized to decide if it wants to legalize online gambling, millions of US players can now take advantage of online sports betting and access a whole different world of casino games. Here’s a look back at where it all began for online gambling in America, and how it transitioned to one of the country’s most profitable industries.

1994
1994

Antigua and Barbuda passed the Free Trade and Processing Act in 1994. This was the first step in paving the way for companies to obtain a gambling license in the United States. It was also around the same time that game developers Microgaming entered the online gambling market to introduce the first online casino software.

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2006
2006

By 2006, all forms of online sports betting had been banned under the US Supreme Court 2002 Federal Wire Act. This was the year that raised concerns over the transparency of the bill, as there were no clauses that clearly indicated whether non-sports betting operations were prohibited at the time. This later prompted many debates among officials and lawmakers.

Click for whole story
2018
2018

On May 14, 2018, the Supreme Court overturned the former bill so that individual US states could rule out their own legislation over sports betting. Delaware, Mississippi, New Jersey, New Mexico, Pennsylvania, Rhode Island, and West Virginia all sanctioned sports betting within six months of the new legislation, followed by Indiana, Iowa, Montana, New Hampshire, North Carolina, and Tennessee in 2019.

Click for whole story
2020
2020

America’s gambling world accelerated dramatically in 2019 and 2020, with states building larger casinos, extending deals with tribal casinos, and talks of new proposals to be drawn up for the other regions hoping to expand their gambling footprint. Online casino gambling is also looking to reach brand new milestones this year through an ever-growing interest in VR and Augmented Reality.

Click for whole story
1994
1994

Antigua and Barbuda passed the Free Trade and Processing Act in 1994. This was the first step in paving the way for companies to obtain a gambling license in the United States. It was also around the same time that game developers Microgaming entered the online gambling market to introduce the first online casino software.

Click for whole story
1994 1994
1994

The Free Trade and Processing Act was passed by Antigua and Barbuda in 1994. This was the first step in paving the way for companies to obtain a gambling license in the United States. It was also around the same time that game developers Microgaming entered the online gambling market to introduce the first online casino software.

Other software providers also began to come around at this time. One of these was the Dublin-based company CryptoLogic, which owns the longstanding InterCasino and claims to have introduced the very first platform where players could wager real cash. Although the games on offer were much more limited at the time, this didn’t put other casinos off from following suit and taking advantage of this virtually untouched market. The surge in online casinos eventually led to the formation of the first gambling commissions in the UK, Gibraltar, Malta, and Alderney two years later. The gaming commissions created licenses and regulations to monitor the general activity of the casinos. They also made sure everybody was adhering to the rules of responsible gaming.

By 1996, there were more than 700 online casinos operating across the globe, with the majority targeting US players. By the turn of the century, this number had grown into the thousands, and the industry was managing to collectively pump out almost $3 billion in gambling revenue every year. A massive $1.5 billion of this was generated in the States alone. These kinds of sums, however, would be just a small milestone in the profit value that would come later down the line.

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2006 2006
2006

By 2006, all forms of online sports betting had been banned under the US Supreme Court 2002 Federal Wire Act. This was the year that raised concerns over the transparency of the bill, as there were no clauses that clearly indicated whether non-sports betting operations were prohibited at the time. This later prompted many debates among officials and lawmakers, especially after the CEO of BetonSports, David Carruthers, was prosecuted for federal violations connected to illegal gambling.

Leaders of other betting companies were also charged for similar violations, though multiple cases were eventually dismissed. By September that same year, the Senate and House of Representatives brought the Unlawful Internet Gambling Enforcement Act of 2006 into legislation. The bill was passed to prohibit all transactions carried out between an online gambling site and a financial institution; however, it still didn’t explicitly condone the act of online gambling.

In 2009, the House Financial Services Committee consulted online security and consumer safety experts over how each state could independently set the framework for internet-based gambling. The original idea was proposed in 2007, but was only pushed for consideration after $34m in winnings was seized from accounts connected to illegal online poker sites. After a vote of 41-22-1, the committee set out to create the Internet Gambling Regulation, Consumer Protection, and Enforcement Act of 2009. This new bill would see the legalization of certain classes of online games, as well as online poker rooms, though not all states were quick to adopt the new laws.

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2018 2018
2018

On May 14, 2018, the Supreme Court overturned the former bill so that individual US states could rule out their own legislation over sports betting. Delaware, Mississippi, New Jersey, New Mexico, Pennsylvania, Rhode Island, and West Virginia all sanctioned sports betting within six months of the new legislation, followed by Indiana, Iowa, Montana, New Hampshire, North Carolina, and Tennessee in 2019. This was followed by Indiana, Iowa, Montana, New Hampshire, North Carolina, and Tennessee in 2019.

Nevada (up until this point) was the only place permitted to offer single-game wagering on sporting events in the U.S. for many years. It began accepting sports wagers in the late 1940s, but despite providing the state with massive chunks of revenue, illegal online gambling was still a prevalent issue –and notably worse back then. All other states were only permitted to offer bingo games, sports-style scratchcards, and lottery tickets. During this time, Nevada became an example for the rest of the country. It also gave other state lawmakers and officials a dry run of what they could expect to earn and lose fiscally.

With a revitalized market for sports betting to now take advantage of, 18 states passed its legalization by the end of 2019. However, states like Utah and Hawaii — which have prohibited all acts of gambling for ethical reasons — continue to abide by the standards of their original constitutions. The ban applies to everything from online gambling, land-based casino gaming, and sports wagering to lotteries and track racing. They do still hold some fundraisers events and charity-based games, but these rarely involve cash prizes or anything of significant value.

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2020 2020
2020

America’s gambling world accelerated dramatically in 2019 and 2020, with states building larger casinos, extending deals with tribal casinos, and talks of new proposals to be drawn up for the other regions hoping to expand their gambling footprint. Online casino gambling is also looking to reach brand new milestones this year through an ever-growing interest in VR and Augmented Reality.

It took a while for commercial gambling to flourish in the 90s, but these days, online gambling is one of the largest industries in the US, generating billions in revenue every year. The downside is that there is a lot of criminal activity that continues to take place too, costing each state billions in untaxed profits every year. If lawmakers keep refining the regulations and continue trying to alter the way online gambling is perceived, it is estimated that 80% of all US states will have legalized every form of gambling by the year 2025.

That’s five years for them to assess the markets and economic trends and tighten the guidelines to work in favor of the economy and its gamblers. It’s highly unlikely that land-based casinos will diminish in that time, but as the demand for online gambling increases, they could well take a hit. After all, a lot can happen in five years, and the industry could well be worth twice as much as what it is currently. If technology keeps evolving the way it is, there’s no reason why this couldn’t be the case.

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1994 1994
1994

The Free Trade and Processing Act was passed by Antigua and Barbuda in 1994. This was the first step in paving the way for companies to obtain a gambling license in the United States. It was also around the same time that game developers Microgaming entered the online gambling market to introduce the first online casino software.

Other software providers also began to come around at this time. One of these was the Dublin-based company CryptoLogic, which owns the longstanding InterCasino and claims to have introduced the very first platform where players could wager real cash. Although the games on offer were much more limited at the time, this didn’t put other casinos off from following suit and taking advantage of this virtually untouched market. The surge in online casinos eventually led to the formation of the first gambling commissions in the UK, Gibraltar, Malta, and Alderney two years later. The gaming commissions created licenses and regulations to monitor the general activity of the casinos. They also made sure everybody was adhering to the rules of responsible gaming.

By 1996, there were more than 700 online casinos operating across the globe, with the majority targeting US players. By the turn of the century, this number had grown into the thousands, and the industry was managing to collectively pump out almost $3 billion in gambling revenue every year. A massive $1.5 billion of this was generated in the States alone. These kinds of sums, however, would be just a small milestone in the profit value that would come later down the line.

EXCLUSIVE

$5,000 BONUS + 50 FREE SPINS
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