Nosy parker's picture

Is it illegal for an American to register and participate in online gaming sites with cash prizes? Or is online gambling only banned in some states?

Posted August 27th, 2010 by Nosy parker
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Xanadu's picture
Posted September 8th, 2010 by Xanadu
Level 1 Novice
Answer

According to federal law betting on a game of chance is legal in the US. Online poker is also legal as long as it is regulated. However states may set their own precedence in this matter. Online gambling is only illegal if local law prohibits it.

Boffin's picture
Posted August 29th, 2010 by Boffin
Level 1 Novice
Answer

This is a gray area as though there is no federal law banning Americans from participating in online casino activities but there are restrictions on how money may change hands. Residents from eleven states are advised to avoid the practice due to possible legal issues.

Quizzier's picture
Posted August 27th, 2010 by Quizzier
Level 1 Novice
Answer

It is not illegal for an American citizen to participate in and win cash in at online gambling site. Cash winning, though, are supposed to be reported as income when you file your taxes.