Monday, October 3

Business Gambling in the US

Business Gambling in the US

Gambling in the USA is one of the most important sources of replenishment of the state treasury. About two decades ago, gambling was legalized in two states only. The organization of casino and gambling activities in the other 48 was strictly prohibited.

Now the situation has globally changed. The casino is permitted in 48 states and is prohibited in only two: in Utah and Hawaii. In the United States, there are several hundred land-based and “floating” casinos, numerous slot machine halls.

US Gaming Law

The legislative regulation of gambling in the United States is the responsibility of local authorities. As chapter 15 of the U.S. Code of Laws states, determining the list of acceptable gambling, its organization, setting age, financial, and other restrictions is the responsibility of the states.

The federal authorities issued only a few legislative acts, the provisions of which are aimed at regulating gambling:

  • The Law “On the Transportation of Gaming Devices», 1951;
  • “On regulation of bets” (Wire Act), 1961;
  • “On the illegal gambling business”, 1970;
  • The law defining punishment for fraudsters and cheaters, 1987;
  • “On the regulation of gambling on the territory of Indian reservations”, 1988;
  • “On the protection of professional gamblers,” 1992;
  • “About the Race”, 2000.

Fully gambling in the United States is legalized only in Nevada and New Jersey. All types of land-based gambling are allowed here.

Other states have certain restrictions. However, the owners of the gambling business have learned to use the features of the legislation in their favor.

For example, the laws of Illinois, Iowa, Missouri, and Louisiana prohibit gambling “on state land.” Operators offer players the opportunity to visit the “floating” casinos. Gaming clubs are organized on cruise ships and barges. Thus, formal compliance with the law is achieved.

According to the results of opinion polls, eight out of ten US citizens consider it right to fully legalize the gambling business.

Business gambling in Nevada

The status of the largest gambling business center in the USA is assigned to the state of Nevada. It is the world-famous cities of Las Vegas, Reno, Carson City are located.

Over 2,000 casinos are organized on the state’s territory. In total, more than 6,000 tables and about 200,000 video slots are available to visitors. About 50 million tourists visit Las Vegas, Reno and Carson City gambling houses every year.

All kinds of gambling are allowed in Nevada. However, the gambling business is tightly regulated. To organize activities, you must obtain a license, comply with the numerous requirements for a casino.

In particular, gambling establishments can be opened exclusively on the territory of a specially allocated quarter. The landing of casinos, slot machines in the vicinity of hospitals, churches, schools, sports grounds is not allowed. There are certain requirements for the area of institutions, the features of their equipment. Carrying out activities in the field of gambling is possible only on the basis of licenses issued by the official regulator.

Nevada Gaming Regulators

The gambling industry in Nevada is regulated by two government departments working in close cooperation:

  1. 1.The Nevada Gaming Commission (NGC) is a state-owned government agency. The main tasks of the department are:
    • consideration of applications for a license;
    • issuance of licenses;
    • development of rules, regulations governing the activities of casinos;
    • the application of sanctions against institutions that violate applicable requirements. In addition to imposing disciplinary sanctions and fines, the Commission may revoke the license.
  1. 2.The Nevada Gaming Control Board (NGCB) is a casino supervisory authority. Among the responsibilities of the department:
    • consideration of financial, personnel issues;
    • verification of the accuracy of information submitted by applicants for a license;
    • providing information and technical support;
    • monitoring the implementation of financial obligations by operators: conducting audits, timely and full deductions of fees and taxes;
    • conducting investigations into possible violations of the casino, as well as identifying illegal activities;
    • verification of technical and gaming equipment;
    • testing gaming devices.

Both departments are fully responsible for their duties.

Licensing condition

Today in the USA there are 3 types of licenses that give the right to conduct a gambling business:

  • limited license. Grants the right to open slot machine halls. The institution can be installed no more than fifteen devices.
  • unlimited. It is divided into two subspecies. N / R slots give the right to open halls with an unlimited number of slot machines, but does not provide for the possibility of setting tables.
  • special. It is provided to operators for placing slot machines in institutions owned by third parties. Lease terms and other aspects of the use of the premises are discussed directly between the parties to the transaction.

In addition to a license to carry activities out, operators are required to issue similar documents for each employee of the company. The production and supply of gaming equipment are licensed separately.

Gambling in New Jersey

The second-largest gambling center in the United States is the state of New Jersey. All types of terrestrial gambling are also legalized here.

Permission to conduct gambling in the state was obtained at the initiative of local residents and based on the results of a local referendum. The first casino in New Jersey was opened in 1978.

Today, the state officially operates 12 gambling establishments. The gambling industry in New Jersey is also strictly regulated by law and is closely monitored by specialized agencies.

New Jersey Gaming Regulators

Like in Nevada, New Jersey gambling controls two regulators:

  • The New Jersey Casino Control Commission (NJCCC) is a state government agency. It has numerous powers in most segments of the gaming industry. The structure of the department unites five specialized units: the licensing department, the appeals department, the taxation department, and the legal and administrative sectors.
  • The New Jersey Division of Gaming Enforcement (NJDGE) is a special division of the State Department of Justice. The main task of the department is to monitor compliance with applicable gambling legislation.

Online gambling in the USA

The development of the online gambling industry in the country is more complicated. Despite the huge popularity of online casinos and bookmakers, the activities of these in the United States are prohibited by law.

Electronic financial payments for transactions with gambling portals were banned in September 2006. And in October, the law on the prohibition of online gambling came into force.

In 2012, the situation has changed a bit. The government has adopted a new law to legalize the activities of online casinos, poker rooms and betting shops in some states. However, so far only Nevada, New Jersey and Delaware have taken advantage of new opportunities. And how the situation will develop further, even professional experts do not undertake to predict.

US Video Slot Developers

Despite the restrictions on participation in online gambling, there are no contraindications to the development of software for online casinos. Several well-known companies specializing in the production of slot machines for ground-based establishments and online portals became immigrants from the USA:

  • International Game Technology (IGT) is a company with headquarters in Nevada, Las Vegas, Reno. Established as a small land-based casino computerization firm, today it has grown as a huge corporation. In 2005, IGT was granted the status of an international company. The manufacturer creates various software for online portals and ground-based gaming establishments. The developer’s collection includes several hundred models of slot machines, roulettes, card games, lotteries and scratch cards. Over 50% of the video slots installed in US casinos are produced by IGT.
  • WMS Gaming is a company established in 1943. The operator’s first development was a pinball machine, released back in the forties. Today, the manufacturer creates innovative slot machines and terminals for casinos. The list of games includes more than a hundred items. In addition, the developer is engaged in the production of platforms for casinos and is the creator of the social network Player’s Life.
  • Genesis Gaming is a company specializing in releasing online gambling. She is positioning herself as a third-party manufacturer of video slots for companies creating software for Internet platforms. Today, the manufacturer enjoys a reputation as one of the best developers of original models. The company’s devices are available in most large establishments and are often represented under the brands of other, more well-known manufacturers. Portfolio Genesis brings together about a hundred machines.

In addition, in the USA there are less well-known companies that develop slots and support online casinos: CUSTOM GAME DESIGN, SLOT CONSTRUCTOR, CHILCO RIVER HOLDINGS  and others.


The USA is a state that has earned a reputation as the “capital of the gaming world.” Here, the number of casinos and poker clubs is increasing annually. The tourist influx is growing.

At the same time, careful control of the gambling business allows you to comply with the order and avoid the negative consequences of gambling.

Predicting alternatives for the development of online gambling is quite problematic. Current legislation has opened up prospects for the development of online gambling and we have got an opportunity to play casino with free spins online. But the actual implementation of its provisions is quite slow and is faced with numerous obstacles from the authorities.

About the author

The article was written by Serg Dum.

“Almost 3 years I am devoted to working as a Chief Content Editor at King Billy Casino”.

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