Online gambling was never comprehensively banned in the USA at the federal level. Instead, it has been regulated through a series of federal laws that restricted certain aspects of interstate and online wagering, while leaving states free to legalize or prohibit it within their borders.
Key Federal Laws Governing Online Gambling
Law
Year
What It Did
Wire Act
1961
Outlawed interstate wagering on sports using wire communications; originally predating the internet but later applied to online betting
Unlawful Internet Gambling Enforcement Act (UIGEA)
2006
Did not prohibit online gambling itself; instead banned financial transactions related to unlawful internet gambling, making it illegal for businesses to accept payments for illegal online gambling
Professional and Amateur Sports Protection Act (PASPA)
1992
Effectually outlawed sports betting nationwide (except in a few states with existing laws)
PASPA Overturned
2018
Supreme Court declared PASPA unconstitutional in Murphy v. NCAA, lifting the federal ban on sports gambling
The “Black Friday” Crackdown (2011)
While not a ban, a 2011 DOJ crackdown—known as “Black Friday”—effectively crushed the online poker boom by charging major online poker operators and seizing their domains, shutting down services for U.S. customers.
Current Status (2026)
Online sports betting: Legal in 30 states plus Washington D.C. and Puerto Rico
Online casinos (iCasino): Legal in 8 states as of June 2026 (Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, West Virginia, and one more)
Fully banned states: Online gambling remains completely banned in several states including California and Texas
No gambling allowed: Hawaii and Utah prohibit all forms of gambling
The bottom line: There is no single date when online gambling was banned in the USA. The legal landscape is a patchwork of federal restrictions and state-level decisions, with online gambling increasingly legalized rather than banned in recent years.
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