UIGEA: Unlawful Internet Gambling Enforcement Act

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February 18, 2020

The Unlawful Internet Gambling Enforcement Act is a 2006 federal law that prohibited U.S. financial institutions from knowingly accepting and processing payments from online gambling sites. This bill carries a high level of controversy due to the manner in which it was focused through Congress. We will provide you with a brief history of UIGEA and how it affects American bettors.

UIGEA: Unlawful Internet Gambling Enforcement Act

Representative Jim Leach of Iowa introduced the Internet Gambling Prohibition and Gambling Enforcement Act on November 18th, 2005. The intent of this legislation was to target the payment processors used for illegal online gambling. Leach’s bill redefined terms of the 1961 Federal Wire Act including expanding the definition of bet or wager to include any game that is subject to chance. The purpose of this was to ensure the bill applied to online poker. The Internet Gambling Prohibition and Gambling Enforcement Act was approved by the House of Representatives on July 11th, 2006.

UIGEA Controversy

The Unlawful Internet Gambling Enforcement Act stalled when it reached the Senate. Proponents of the bill decided to sneak it through by attaching it to the end of the SAFE Port Act. This was a piece of must-pass legislature that provided counter terrorism funding. The problem was that it had nothing to do with gambling regulation. The SAFE Port Act passed by unanimous vote on the last session of Congress before the 2006 mid-term elections. No one wanted to appear weak on terrorism prior to the elections. The UIGEA sneaked through despite none of Congress reading it’s final language.

What is UIGEA?

Despite controversy the UIGEA was put into law when President George W. Bush signed the SAFE Port Act on October 13th, 2006. This piece of gambling legislation targeted unlawful betting sites and their financial institutions. The Act makes it illegal for online gambling businesses to knowingly accept payments from another person for unlawful Internet gambling. Regulations are given authority to identify and block transactions that are being sent to unlicensed betting sites. It also granted the federal government permission to force internet service providers to terminate hosting of unlawful gambling sites.

How does UIGEA affect US bettors?

The Act specifically targets betting sites and their financial institutions. There are no federal laws that prevents Americans from using offshore sportsbooks. When UIGEA went into effect many betting sites withdrew from the US market. Some of them returned after investing in payment processors that complied with UIGEA regulations. The Act’s primary concern was preventing fraudulent transactions which were often connected to offshore gambling businesses.

American betting sites began using payment processors that were more secure. They were capable of verifying that the funds were not fraudulent. This was beneficial to US bettors as they could safely fund their offshore sportsbook accounts. The downside was payment methods were limited. Most e-wallets and credit cards were no longer accepted. The recent rise of cryptocurrency has made it easier for Americans to deposit offshore.

Can I bet safely from the United States?

Yes! As of July 2020 there are many offshore betting sites that serve the US market. We have reviewed each of these sportsbooks and they are safe to use for American gamblers.

PASPA: Professional and Amateur Sports Protection Act

By

Lucas Amarro

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February 13, 2020

The Professional and Amateur Sports Protection Act (abbreviated PASPA) is a since-overturned 1992 federal law that banned sports betting across the United States. Only four states which previously had legalized sports lotteries or pools were exempt. In 2018 PASPA was ruled unconstitutional by the Supreme Court of the United States allowing states to enforce their own sports betting laws. We will take a quick look at the history of PASPA and how it’s repeal affects American bettors.

PASPA Senate Hearings

On June 26th, 1991 the Senate Judiciary Subcommittee on Patents, Copyrights, and Trademarks held public hearings in which the topic of sports betting was brought up. It was determined that sports gambling posed a national problem even in states that had not legalized it. The Senate ruled that sports betting had interstate ramifications that were not being covered by the 1961 Federal Wire Act; which prohibits the transmission of betting information across state lines.

Professional and Amateur Sports Protection Act

PASPA goes into effect on October 28, 1992. The federal law revokes the power of the states to pass their own sports betting legislation. This effectively outlaws sports gambling in the United States. The exemptions to PASPA are the states that are already operating licensed sports wagering services. This is limited to four states: Delaware, Montana, Nevada, and Oregon. Congress provides all states that have been operating licensed casinos one year to pass sports betting legislature. New Jersey is the best candidate for this but fails to take advantage of it.

New Jersey Lawsuits against PASPA

In March 2009 New Jersey State Senator Raymond Lesniak funds his own lawsuit against PASPA. He claims that the federal law is unconstitutional as it discriminates against the 46 states that do not have sports betting legislature. The case is thrown out with the courts stating it must be brought on by New Jersey governor Chris Christie. New Jersey holds a non-binding referendum in November of 2011 where voters backed legalized sports betting by over 66%. On May 24th, 2012 governor Chris Christie announces plans to bring sports wagering to New Jersey race tracks and casinos. He anticipates resistance:

“We intend to go forward and allow sports gambling to happen, if someone wants to stop us, they’ll have to take action to stop us.”

He was correct. On August 7th, 2012 the NCAA, NBA, NFL, NHL, and MLB file a lawsuit against New Jersey stating that their proposal violates PASPA. The state counters with the argument that PASPA itself violates the Tenth Amendment of the United States Constitution which reserves all states any rights not explicitly granted to the federal government (which includes gambling regulation). The court rules against New Jersey agreeing with the leagues that their law violates PASPA.

Supreme Court overturns PASPA

New Jersey files an appeal for their lawsuit. On September 17th, 2013 it is ruled that while their proposed law does violate PASPA there is no federal law against repealing any existing legislature that outlawed sports betting. New Jersey attempts this in 2014 and is met with another lawsuit by the major sports leagues. The case titled Murphy v. National Collegiate Athletic Association was brought to the Supreme Court and accepted on June 27th, 2017. The court heard oral arguments on December 4th, 2017 and ultimately ruled PASPA unconstitutional on May 14th, 2018.

Does PASPA repeal make sports betting legal?

The Supreme Court’s decision that PASPA is unconstitutional allows states to create their own sports betting legislation. This means it is up to each state to decide if they should legalize it. You can track each state’s legislative status as of July 2020 with our betting map. When a state passes the necessary laws licensed and regulated online sportsbooks will open. Americans from all 50 states are still able to safely bet on sports using offshore betting sites.

Our recommended US betting sites July 2020:

2011 Department of Justice Legal Opinion

By

Lucas Amarro

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February 12, 2020

In 2011 the Department of Justice released a formal legal opinion regarding the scope of the 1961 Federal Wire Act. In this document the DOJ announced that they belief the Wire Act applies strictly to sports betting and not other forms of gambling. We will take a quick look at their statement and break down how it affects American bettors.

What is the Federal Wire Act?

Before we take a look at the Department of Justice’s legal opinion let’s briefly summarize the Federal Wire Act. Passed in 1961, this federal law made it illegal to transmit betting information across state lines via telephone or telegram. It’s purpose is to prevent organized crime operations from profiting off match fixing and to allow states to enforce their own respective gambling laws. The Wire Act specifically targets people who accept bets on US soil from American citizens living in different states. There are no federal laws against placing bets or using an offshore betting site.

2011 DOJ Formal Legal Opinion

New York and Illinois wanted to use out-of-state payment processors in order to sell lottery tickets in-state. This practice violates the 1961 Federal Wire Act which prevents the transmission of betting information across state lines. On September 20th, 2011 the United States Department of Justice released a formal legal opinion narrowing the scope of the Wire Act. They believed that since the Act was an anti-racketeering law meant to prevent the mafia from profiting off match fixing it should only apply to sports betting.

“Interstate transmissions of wire communications that do not relate to a sporting event or contest fall outside the reach of the Wire Act. Because the proposed New York and Illinois lottery proposals do not involve wagering on sporting events or contests, the Wire Act does not prohibit them.”

This means that it is no longer illegal to transmit betting information across state lines as long as it does not pertain to a sports match. Many states immediately took advantage of this and implemented it in the sale of online lotteries.

Reversal and New Hampshire Lawsuit

The United States Department of Justice reversed the 2011 formal legal opinion on November 2nd, 2018. They announced that narrowing the Wire Act’s scope to strictly sports betting only applied to one subsection of the law. This subsection dealt with the transmission of information that would assist in placing bets on sporting events. This reversal yet again made it illegal for states to transmit non-sports related gambling information across state lines:

“This Office concluded in 2011 that the prohibitions of the Wire Act in 18 U.S.C. § 1084(a) are limited to sports gambling. Having been asked to reconsider, we now conclude that the statutory prohibitions are not uniformly limited to gambling on sporting events or contests. Only the second prohibition of the first clause of section 1084(a), which criminalizes transmitting “information assisting in the placing of bets or wagers on any sporting event or contest,” is so limited. The other prohibitions apply to non-sportsrelated betting or wagering that satisfy the other elements of section 1084(a).”

This disrupts the gambling operations of many states. The New Hampshire Lottery Commission filed a lawsuit against the DOJ citing that a reversal of the 2011 formal legal opinion would cost them $100 million per year in education funding. On June 3rd, 2019 the Federal District Court of New Hampshire ruled in their favor. Federal Judge Paul Barbadoro stated that the 1961 Federal Wire Act only applies to sports gambling. The Department of Justice filed a Notice of Appeal against the judges ruling on August 16th, 2019.

Is it safe for Americans to bet on sports?

Yes. The 1961 Federal Wire Act and the Department of Justice’s 2011 and 2018 formal legal opinions specifically target individuals and organizations who accept bets on US soil from residents of different states. The Wire Act does not target Americans who place bets using offshore sportsbooks; as these betting sites are licensed and located in countries with legal online gambling. There has never been a federal law against using an offshore betting site. Americans are free to use them without any fear of getting in trouble.

Below is a list of some recommended American betting sites for July 2020:

The Federal Wire Act

By

Lucas Amarro

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February 11, 2020

The Federal Wire Act is a US law that makes it illegal to accept bets across state lines. It was put into effect by Congress on September 13, 1961. It’s goal is to prevent organized crime syndicates from profiting off fixing sports events. It is not illegal for Americans to bet offshore as the Wire Act specifically focuses on interstate gambling. In this article we will provide you with a brief overview of everything you need to know about the main American betting laws.

Federal Wire Act

The Federal Wire Act was put into law on September 13, 1961. It is part of a series of anti racketeering laws that aim to limit the expansion of organized crime. The Federal Wire Act prohibits the transmission of betting information across state lines via telephone and telegram. This means that it is against the law to accept a bet from someone in a different state, but not illegal to use an offshore betting site. The Act makes it harder for mafia operations to profit off fixing sports events. It also gives power to the states allowing them to enforce their own respective gambling laws.

federal wire act

Is it against the law to place a bet?

Congress made it clear that the Federal Wire Act specifically targeted the organizations who were accepting interstate bets and not the bettors who were placing them. During a debate in the House of Representatives, Congressman Emanuel Celler, Chairman of the House Judiciary Committee at the time, confirmed this:

“This bill only gets after the bookmaker, the gambler who makes it his business to take bets or to lay off bets… It does not go after the causal gambler who bets $2 on a race. That type of transaction is not within the purvue of the statute.”

The Federal District Court further added that Americans who wager larger amounts and operate with a degree of sophistication are also not targets of the Federal Wire Act. The only thing that is illegal is to accept a bet from someone who is located in a different state. In short you cannot get in any trouble by placing a bet online.

Does the Federal Wire Act affect offshore betting sites?

Nope! The Federal Wire Act only prevents you from running your own illegal betting site on US soil and accepting wagers from customers in different states. Offshore sportsbooks are betting sites that are licensed and regulated by countries that have legal online gambling. There is no federal laws preventing Americans from using offshore sportsbooks. Many of these betting sites have been serving the US market for years and have flawless reputations.

Our recommended American betting sites for July 2020:

2011 Department of Justice Legal Opinion

On September 20th, 2011 the United States Department of Justice released a formal legal opinion regarding the 1961 Federal Wire Act. New York and Illinois wanted to use out-of-state payment processors for the sale of in-state lotteries. This would have been a violation of the Wire Act which prevented the transmission of betting information across state lines. The Department of Justice stated that the 1961 law should only apply to sports betting.

“Interstate transmissions of wire communications that do not relate to a sporting event or contest fall outside the reach of the Wire Act. Because the proposed New York and Illinois lottery proposals do not involve wagering on sporting events or contests, the Wire Act does not prohibit them.”

2018 Department of Justice Reversal

On November 2, 2018 the Department of Justice announced a reversal to their 2011 formal legal opinion that narrowed the scope of the Federal Wire Act to sports betting. They claimed that the restriction only applied to one part of the 1961 law regarding the transmission of information which assists in placing bets on sporting events. This change again prevented the use of out-of-state payment processors for online lottery sales. The Department of Justice gave businesses 90 days to comply.

2019 New Hampshire Lawsuit

The New Hampshire Lottery Commission immediately filed a lawsuit with the US District Court. They claimed that the Department of Justice’s 2018 reversal would cost them up to $100 million in education funds. On June 3rd, 2019 District Court Judge Paul Barbadoro ruled in favor of New Hampshire, claiming that the 1961 Federal Wire Act should only be applied to sports betting. The Department of Justice filed a Notice of Appeal on April 16th, 2019.

Conclusion

The 1961 Federal Wire Act makes it illegal to accept bets from Americans living in other states while operating on US soil. This was done to curtail organized crime and was never intended to go after everyday people who just waned to place sports bets. Further, the Federal Wire Act does not apply to offshore betting sites because they are not located in the United States. Americans can safely bet online using offshore sportsbooks that are open to the US market without any problems. For a more detailed description please refer to the Federal Wire Act wiki page.

5Dimes Review

By

Lucas Amarro

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5Dimes is an American betting site that accepts customers from the United States. It is considered one of the best sportsbooks for both casual and experienced sportsbettors. New customers who join with the July 2020 5Dimes promo link will receive a 50% first deposit bonus up to $520. Our 5Dimes review will cover everything you need to know about this betting site before getting started!

5Dimes Review July 2020

Jump to any section of our 5Dimes review:

Available States
Signup Bonus
Deposit Methods
Withdrawal Time
Betting Markets
Competitive Odds
Livebetting
Customer Support
Pros and Cons

5Dimes Available States

5Dimes is available to residents of all 50 states! Anyone located in the United States can safely use this American betting site. Their offices are located offshore in a country with legal and regulated online gambling.

5Dimes Signup Bonus July 2020

You can claim this month’s signup bonus when you register using the July 2020 5Dimes promo link. New members will receive a 50% match on their first deposit up to $520.

Simply click on the July 2020 promo link (here) when you create your 5Dimes account. You will be given a great selection of bonuses which include first deposit matches, reload bonuses, and free payouts. No promo codes needed!

5Dimes Deposit Methods

You can deposit through credit card (VISA, MasterCard), person-to-person transfers, money orders, and Bitcoin. From my experience 5Dimes has the best credit card processors amongst offshore American betting sites. You will be able to deposit here even if you have had difficulty with other sportsbooks. 5Dimes deposits are discrete which means it will not show up as a betting site on your credit card statement.

5Dimes Payout Time

You can withdraw your winnings through cashier check, money order, bank wire transfer, person-to-person transfers, and Bitcoin. 5Dimes processes payout requests quickly allowing you to receive your winnings within a few days (depending on the selected method). Customers who choose to cashout with Bitcoin will receive their money in under 24 hours with minimal fees. Users who registered using the July 2020 5Dimes promo link can select free payouts as part of their signup bonus. In my experience 5Dimes is one of the easiest offshore sportsbooks to withdraw from.

5Dimes Betting Markets

You can bet on all major North American and European sports including football, basketball, baseball, hockey, soccer, tennis, and MMA. On top of traditional betting markets (moneylines, spreads, and totals) 5Dimes offers betting on a variety of player and team props including player head-to-heads, individual team totals, half-time markets, and season win totals. They are also one of the earliest offshore American betting sites to post their lines giving an advantage to knowledgable sportsbettors.

Competitive Odds

5Dimes is a high-limit betting site. Since they accept large wagers you can expect them to offer sharp competitive odds. This means you do not have to deal with the additional line adjustments seen at square sportsbooks. This makes 5Dimes an ideal primary betting site.

5Dimes Livebetting

In-play wagering is split over two systems. The more popular of the two Livebetting Ultra gives you access to thousands of football, basketball, ice hockey, baseball, soccer, and tennis matches each day. This includes lower division matches normally not offered by American betting sites. The second system Livebetting Extra gives you a larger selection of betting markets on a handful of select events. 5Dimes currently has the best livebetting system of all US sportsbooks.

5Dimes Customer Support

You can reach a customer service agent through live-chat, phone, or e-mail. 5Dimes’ support department are helpful and will be able to resolve any issues you have in a matter of minutes.

5Dimes Review Video

You can check out my 5Dimes review condensed into a brief video. I cover everything you need to know in under 5 minutes. Topics include signup bonus, deposit methods, payout time, available games, betting markets, and quality of odds.

5Dimes Signup Bonus July 2020

You can claim this month’s signup bonus when you register using the July 2020 5Dimes promo link. New members will receive a 50% match on their first deposit up to $520.

Simply click on the July 2020 promo link (here) when you create your 5Dimes account. You will be given a great selection of bonuses which include first deposit matches, reload bonuses, and free payouts. No promo codes needed!

Pros and Cons

Here is my 5Dimes review condensed into a short list of pros and cons:

5Dimes Pros

Large selection of signup bonuses
Many deposit methods
Thousands of available games
Sharp high-limit betting markets
Plenty of team and player props
Two high-quality livebetting systems

5Dimes Cons

Ugly interface
High payout fees without free withdrawal bonus option

Is sports betting legal in the United States?

By

Lucas Amarro

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February 6, 2020

is sports betting legal in united states

As of July 2020 over 20 US states have fully legalized online sports betting; with another handful of states already in the process of legalization. Here is everything you need to know about the legal status of online gambling in the United States.

Is sports betting legal in the United States?

Contrary to popular belief, there are no federal laws that prohibit US residents from placing bets online. This means it is not against the law to bet on sports using offshore betting sites that are licensed in countries that have legal online gambling. There are only two states that have laws against betting online are Connecticut and Washington (even though neither of those states have enforced those respective laws). In recent years many states have begun passing legislation that would legalize internet gambling. As of July 2020 over 20 states have achieved legal status, with an additional 20 currently in the legislative process. Even if you live in a state that has not legalized online gambling you can still safely bet offshore without any trouble.

is sports betting legal in united states

What states have legal online gambling?

While many states are legalizing gambling, only a handful of states have state-regulated online betting sites:

While each of these states currently offer state regulated online betting sites, many residents continue to use offshore sportsbooks. The larger selection of offshore books leads to more competition between betting sites; giving the player access to more competitive odds.

What are the US laws against gambling?

In order to understand the history of gambling legalization in the United States there are a few notable federal laws that must be examined further.

The Federal Wire Act (1961)

The Federal Wire Act made it illegal to bet across state lines through telephone or telegraph. This federal law was meant to target illegally ran bookmakers which carried mafia involvement. The Federal Wire Act was focused on the individuals taking bets and not those that were placing them. US residents could therefore still gamble safely offshore or across state lines without getting in trouble. The risk lied solely on those who were running the bookmaking operations.

PASPA (1992)

The Professional and Amateur Sports Protection Act (abbreviated PASPA) was a federal law that aimed to make sports betting illegal. This was done with the goal of maintaining the integrity of professional and collegiate sports leagues. PASPA prevented the sports betting industry from expanding through the United States. The only states that were exempt from this federal law were Delaware, Montana, Oregon, and Nevada as they were already offering licensed sports betting and lotteries.

UIGEA (2006)

The Unlawful Internet Gambling Enforcement Act (UIGEA) hindered online gambling sites by targeting their methods of processing payments. Online poker began increasing in popularity around 2004. At the time of UIGEA passing, many betting sites were unsure if they would able to offer consistent deposits and withdrawals to their customers. The gambling industry survived by switching to more reliable payment processors in order to comply with the Unlawful Internet Gambling Enforcement Act. Similar to the previous federal laws discussed, it was still not illegal for Americans to place bets online. Bookmaking services simply had to be more selective in their offered payment options.

DOJ Interpretation (2011)

As the internet became more popular many states wanted to start offering online gambling to their residents. At the time some states offered regulated internet lotteries while others were still restricted. The Department of Justice was asked to clarify previous federal rulings on whether each state carries the right to make their own decisions regarding online gambling. The DOJ ruled in favor of the states; saying that the federal government had no right preventing states from sanctioning internet gambling.

PASPA Repeal (2018)

PASPA was repealed in 2018 which gave every US state the ability to legalize any form of online gambling. As of July 2020 a few states have taken advantage of this, with more projected to follow suit in the coming years.

Final Verdict

The important thing to remember is that there has never been a federal law that made it illegal for American citizens to bet on sports. While to question of whether it’s legal to bet on sports from the United States must be answered on a state-by-state basis, US residents will always be able to safely bet through offshore sportsbooks. For a list of betting sites available in each state as well as each state’s specific online gambling laws check out our interactive betting map or select your state from the list below.

Are offshore sportsbooks safe to use?

By

Lucas Amarro

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February 6, 2020

Offshore sportsbooks are very popular among both casual and experienced American sports bettors. They give residents of all 50 US states a wide variety of betting sites to choose from. Despite many offshore sportsbooks having a solid reputation some Americans remain hesitant about trying them. In this article we will take a look at why offshore sportsbooks are safe to use for residents of the United States.

What is an offshore sportsbook?

An offshore sportsbook is an online betting site that operates out of a different country than where it’s customers live. These betting sites are licensed and regulated in countries that have legal online gambling. Offshore betting sites have always been popular among gamblers who live in countries that do not offer easy access to federally regulated sportsbooks such as the United States. The majority of betting sites featured on our website are regulated by the governments of Costa Rica or Panama.

are offshore sportsbooks safe

Are offshore US sportsbooks safe?

Yes. If you register an account with an offshore betting site that has been operating for a long time with a solid reputation you will not encounter any problems. Most of these sites accept large wagers from experienced bettors and would not risk jeopardizing their brand image. All of the American betting sites featured on our website can be fully trusted. We review each US sportsbook and only recommend those that we are safe for our readers.

are offshore us betting sites safe

Can I get in trouble betting offshore?

No. Contrary to popular belief there is no law against betting online from the United States. You cannot get in trouble by using offshore sportsbooks. Bettors from the United States can safely deposit and withdrawal funds from offshore betting sites without having to worry about anything.

are offshore us betting sites safe

Top Offshore US Sportsbooks

Our job is to review the safest offshore sportsbooks so that you know which ones are safe to use. We also have put together a list of each betting site’s signup bonuses for July 2020. Use the promo links below when you create your account to automatically receive the best available signup bonus for this month.

Which betting sites are available in my state?

By

Lucas Amarro

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February 6, 2020

Online gambling continues to increase in popularity in the United States. To make finding a safe American betting site easier we have put together a way to filter US sportsbooks by their available state. Our interactive betting map allows users to quickly generate a list of the top betting sites available in their region. From here bettors can view each sportsbook’s review and claim the best available signup bonuses for July 2020.

Which betting sites are available in my state?

As we head into July 2020 legalized online gambling is starting to become more prevalent. A handful of states have begun the process of passing legislation to regulate in-state betting. In this article we will teach you how to find safe and reliable American betting sites that are available to residents of your state.