Legislation in the United States, for the most part, has viewed online gambling as a legal gray area. One important thing to remember is that there is no law that states that online gambling should be considered illegal.
For the most part, the legality of online gambling depends on your state of residence. Louisiana, Illinois, Michigan, and Nevada currently prohibit online gambling. Massachusetts, California, Utah, and South Dakota prohibit specific areas of online gambling, but do not prohibit others.
However, substantial loopholes appear to emerge in those laws. The notion was upheld that a nationwide law could never be introduced that could or would prevent online gambling from taking place. However, in 2006, that notion proved not entirely accurate.
In September 2006, a Republican congressman introduced a bill citing moral problems with online gambling. This law was called the Internet Gambling Enforcement Act of 2006. The Senate eventually passed the bill successfully. As a consequence of the Act, it is considered illegal for any financial institution located in the United States to accept any online gambling transaction UFA generated by any gambling operator.
However, the new law makes legality still difficult to determine. Some mainstream online casinos continue to host players from the United States. The new laws have proven quite difficult and almost impossible to enforce.
At the moment, it appears that online gambling by US citizens has simply been changed and not completely ignored. Although no one has gotten involved or even come close to being prosecuted under this relatively new law, players must inform themselves beforehand and be willing to take a small risk.