Gambling in the United States: legal requirements and industry trends

Gambling in the United States is quite controversial, mainly due to the inhomogeneous legislation from state to state. But the history of gambling in the country is very rich. Its roots date back to the Indian tribes, who spent their time playing different card and board games and other tribal games. Nowadays, people still love this type of entertainment, but what has changed since that time?

The advent of online gambling and digital payments has broadened the opportunities both for gamblers and gambling business owners. Now, this sector is expanding at a rapid pace – the Research&Markets report predicts the industry to reach $92.9 billion by 2023, showing growth at an annual compound rate of 11.6%. The most powerful catalyst for the industry’s development is the rising technologies, such as IoT, blockchain, and VR.

Gambling in the United States: a quick overview of the current situation

Despite all the legal issues, gambling represents one of the United States' biggest and most developed segments. It is one of the largest sources of local budget replenishment. For instance, it is estimated that the revenue of casinos (casino hotels excluded) will reach about $21,8 billion by 2024.

The pandemic has really wreaked havoc with the global gambling industry, especially the offline one. Regions were affected in different ways and at a different speed. The situation with online gambling was a bit better. Still, some of them bounced back quickly, for example, the regional casino market in the United States. As a representation, the number of commercial casinos operating in the country at the beginning of the pandemic amounted to 465, and in 2021 – to 466. A big part of the largest world casino companies is situated in the United States, namely in Las Vegas and Pennsylvania. As of June 2022, the largest offline casino is situated in Oklahoma, USA.

Types of gambling in the United States

Gambling comprises a range of online and offline games, the result of which is influenced not by the experience and skills of the player but by chance or luck. Here is a brief list of those in the United States.

• Commercial casinos
• Tribal casinos
• Sports betting
• Pari-mutuel betting
• State lottery
• Online gambling

Gambling on Indian reservations is divided into several types.

Unique entertainment

The first category includes unique activities that are not presented in other land-based casinos. These are traditional tribal games, which are the elements of rituals or ceremonies. Such activities attract mainly those gamblers who want an unconventional and unique experience because the prizes for winning in tribal games are symbolic. Coordinating the conduct of such gambling activities with local tribe leaders is a must.

Card & board games

These are games for visitors to play with each other. Poker and bingo are among them. The launch of this type of game must be coordinated with the National Indian Gaming Commission or NIGS for compliance with the requirements of the IGRA. Traditional slots and blackjack are not included in this category.

Traditional slots, roulette, and blackjack

This is the most popular type of gambling in the United States, especially in commercial casinos. To organise these games, the gambling houses need to get approval from the NIGS, tribal leaders, and the authorities of the state where the reservation is located.

Unlike commercial casinos operating in other states, not only representatives of the NIGS, but also the Committee on Internal Affairs, as well as Congress, act as controlling bodies for tribal casinos.

Part of the profit from gambling activities goes to the state treasury, and the rest is redirected to the social needs of the community and its economic development. In addition, gambling can fund charitable projects. Generally, native American tribes play an important role in developing the potential of the US gambling industry.

Is online gambling legal in the US?

Running an online gambling business in the USA is not a piece of cake. In addition to the strict legal regulations, which can vary significantly depending on the burdensome tax system of some states, the complexity associated with the specifics of gambling also comes into play. So, let’s clarify what types of gambling activities are legal or illegal across the region.

Gambling law in the US: a brief overview

Before launching a business in the gambling industry in any country, it is a must to learn where online gambling is legal. It is also vital to consult with local authorities to be well versed with the changes in regulations of every country or state.

The legislation on gambling in the US is extremely ambiguous. Here is the list of the specificities in each state.

Requirements for getting a gambling license in the US

To apply for a gambling license in the US, the business owner must fill out an application and send it to the authorised regulator. Along with the application, it is necessary to provide business documentation, which includes:

• a certificate of registration;
• information about owners;
• financial statements;
• descriptions of games and bonuses;
• tax returns;
• some states even require fingerprints.

After a thorough check, a license is issued if everything complies with the requirements. License costs and tax rates also vary by state and license type. Some licenses are issued for a five-year period and have to be renewed yearly or once in five years.

Trends in the US gambling 2022

In the online casino industry, it is especially important to follow the latest trends and be able to apply them in time. It directly influences whether a gambling project will receive customers already accustomed to modern conveniences. So, here are the main online gambling trends in 2022.

Blockchain technology

Games that use cryptocurrencies shook the gaming universe in 2021. They allow users to earn cryptocurrencies by performing certain activities or by selling things. However, unlike standard game options, earned funds can be withdrawn from the game and used in the real world.

Cryptocurrencies as a payment method

Unlike the previous technology, the trend toward using cryptocurrencies for settlements in casinos has been gaining momentum for several years by now. Recently, governments have been trying to monitor online payments and payouts at illegal casinos more, and they have more and more tools for this. So, cryptocurrencies are becoming the main hope of gambling enthusiasts. Today, many casinos already offer bitcoins and altcoins for settlements, and sometimes the choice of virtual currencies as a payment method represents dozens of options.

This technology provides sufficient protection to users, so additional verification of identity is not required. That’s why some institutions already use only cryptocurrencies for settlements to abandon the standard verification process.

Virtual reality and the metaverse

Virtual reality has been the most discussed topic for several years, but the technology itself is developing quite slowly and has not yet reached its peak. Nevertheless, there are high hopes for it, especially for the metaverse. Talking about the state of things in 2022, there are games that offer to spend time in virtual reality. Several of these options allow the player to bet as if at a real table. Moreover, there is even a virtual casino where you can walk from table to table or from slot to slot.

Games on mobile devices

This trend is not quite new, but it’s a must to offer gamblers the opportunity to place bets on a smartphone. It’s hard to imagine a developer releasing a PC-only game. Today casinos offer customers to place bets from smartphones not only in slot machines but also at tables with live dealers, and the development of technology makes this process closer and closer to reality.

Cloud data

The essence of this technology is that the processing of data during the game takes place not on the user's device but in the cloud, and only the processing result will be sent to the device. It means that expensive consoles and cool gaming computers will simply not be needed in the near future. Only a screen and the Internet are required to play in the cloud, and device parameters do not play any role. Processing information in the cloud will allow for creating more complex games without slowing down the process of using them.

Creation of new companies and games in the field of gambling

Online gambling is incredibly popular today, but the industry only predicts growth in users and turnover. So in 2022, new development companies and new establishments will definitely appear. In addition, the industry will be replenished with hundreds of new games from startup companies and industry giants.

New technologies are changing the whole world, including the gambling industry. Innovations such as blockchain and virtual reality can significantly improve the quality of online casino games, making them even more interesting and attractive for customers.

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Gambling payment processing specifics

Choosing payment methods for gambling is a vital point. The relevant payment methods provide convenience and proper security both for gambling merchants and the customers of casinos or online betting sites.

Among the most popular casino payment methods are:

• Credit and debit cards
• Prepaid cards
• E-wallets
• Cryptocurrency
• Bank transfers

The main challenge in gambling and betting payment processing is the need to cope with transactions in several currencies and methods across the globe. It implies time-consuming reconciliations and a certain risk of fraud.

We at Corefy offer a range of smart tools that allow businessmen in online gambling or sports betting to concentrate on their business tasks and entrust all the hassles with payments to our team. Our solution empowers you to easily process any payment flow, method, or currency and expand your business to new markets. Hassle-free Payouts help you to pay out the winning for your gamblers easily and via the methods of their choice. Book a live demo to see our platform in action and ask any additional questions. We are here to help your business grow.