There is no single answer to whether online casinos are legal in the United States, because gambling is regulated state by state. A handful of states license real-money online casinos, while in most of the country they are not allowed at all. This guide explains which states regulate online casinos, how to check whether a site is licensed, what protections licensed sites give you, how winnings are taxed and where to get help.
Is online gambling legal in the United States?
Only in some states. Federal law leaves it to each state to decide whether to allow online casino games. The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) does not ban online gambling by itself, but it stops banks and payment companies from processing payments for gambling that is illegal under state or federal law.
As of 2026, real-money online casinos are licensed and live in seven states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia. Maine has also passed a law allowing online casinos operated through its tribal nations, but its market still has to complete rulemaking and licensing before it can launch. Bills in other states, including New York, Maryland and Virginia, did not pass in 2026.
Online sports betting and online casino games are separate. Many more states allow online sports betting than online casinos, so a sportsbook being legal where you live does not mean casino games are.
What about offshore and sweepstakes casinos?
Offshore casinos licensed in places such as Cura莽ao or Anjouan are not licensed in any US state. They operate outside US law, state regulators have issued cease and desist orders against them, and players who have problems with them have no American authority to turn to.
Sweepstakes casinos, which use a dual currency model, have also come under pressure. A growing number of states, including California from January 2026, have passed laws banning them, and others have taken enforcement action. Check your own state's rules before you assume a site is permitted.
How can you check whether an online casino is licensed in your state?
Every state with legal online casinos publishes the sites it has approved, so the check takes only a few minutes.
- Find your state's gaming regulator, for example the New Jersey Division of Gaming Enforcement, the Pennsylvania Gaming Control Board or the Michigan Gaming Control Board.
- Open the regulator's list of authorised online casino or internet gaming sites.
- Compare the exact website address with the list. Licensed sites are usually linked to a land-based casino or tribal partner in that state.
- Look for the regulator's seal and licence details in the site footer.
- Note that licensed sites use geolocation and only let you play while you are physically inside the state.
What protection do players get at state-licensed casinos?
State-licensed casinos must verify your age and identity, keep player funds separate from their operating money and use games that have been tested and approved by the state. You can file a complaint with the state regulator if a dispute is not resolved.
Each regulated state also runs a self-exclusion programme. You can sign up through the regulator, usually online, for a set period such as one year, five years or life, depending on the state. Licensed operators must block you during that time. Most sites also offer deposit, spending and time limits in your account settings.
None of these protections apply at offshore sites, which do not honour state self-exclusion lists.
- Age, identity and location checks
- Player funds held separately from the operator's own money
- State-run self-exclusion programmes
- Complaints handled by the state gaming regulator
Do you pay tax on gambling winnings in the US?
Yes. Gambling winnings are taxable income at the federal level, whatever their size and wherever you win, and you must report them on your tax return. Casinos issue a Form W-2G for larger wins and may withhold federal tax on big prizes.
From the 2026 tax year, the One Big Beautiful Bill Act limits the deduction for gambling losses to 90 percent of losses, and only up to the amount of your winnings, for those who itemize. That means you can owe tax even if you broke even over the year. Most states also tax gambling winnings. Check irs.gov or speak to a tax professional, especially if you have large wins or losses.
Which payment methods do licensed US casinos accept?
State-licensed sites accept debit and credit cards, PayPal, Venmo, the Play+ prepaid card, ACH transfers and online banking, and often cash at the cage of the partner casino. Some card issuers decline gambling transactions, which is why online banking and e-wallets are popular.
All payments are in US dollars and must use accounts in your own name. If a site asks for cryptocurrency or wire transfers to unfamiliar companies, it is not a state-licensed casino.
Where can you get help with gambling in the US?
The national problem gambling helpline, 1-800-GAMBLER (1-800-426-2537), is free, confidential and open 24 hours a day, with call, text and chat options. It connects you with support in your state.
Most states also fund their own counselling and treatment programmes, and you can join your state's self-exclusion list through the gaming regulator if you want to stop playing.
Myths vs facts
- Myth: Online casinos are legal everywhere in the US since sports betting was legalised.
- Fact: Sports betting and casino games are regulated separately. Only a small number of states license real-money online casinos.
- Myth: An offshore licence makes a casino legal for American players.
- Fact: A licence from Cura莽ao or another offshore jurisdiction has no standing in any US state, and you have no American regulator to help in a dispute.
- Myth: Small gambling wins are not taxable.
- Fact: All gambling winnings are taxable income at the federal level. The W-2G threshold only decides when the casino reports a win, not whether it is taxable.
- Myth: You can deduct all your losses against your winnings.
- Fact: From 2026 only 90 percent of gambling losses are deductible, and only if you itemize, so even a break-even year can leave tax to pay.
Before you claim
- Your state licenses real-money online casinos
- The site appears on your state regulator's list of authorised sites
- The regulator's seal and licence details are shown in the footer
- The site checks your age, identity and location
- Deposit, spending and time limits are available
- You know how to join your state's self-exclusion programme
- You have the national helpline saved: 1-800-GAMBLER