The gambling business in the United States is one of the most important sources of replenishing the state treasury. About two decades ago, gambling was legalized only in two states of the state. The operation of casinos and gambling clubs in the other 48 was strictly prohibited.
Now the situation has changed globally. Casino gambling is legal in 48 states and banned only in two: Utah and Hawaii. Several hundred land-based and floating casinos operate in the United States, and numerous slot machine halls operate.
US gambling legislation
The legislative regulation of the gambling business in the United States is in the competence of local authorities. As stated in Chapter 15 of the United States Code, the determination of the list of acceptable gambling, the specifics of their organization, the setting of age, financial, and other restrictions is the responsibility of the states.
The federal authorities have issued only a few legislative acts, the provisions of which are aimed at regulating gambling activities:
- Law on the Transportation of Slot Machines of 1951;
- The Wire Act, 1961;
- “On illegal gambling business”, 1970;
- The Law Determining the Punishment of Fraudsters and Cheaters, 1987;
- “On the regulation of gambling on the territory of Indian reservations”, 1988;
- “On the Protection of Professional Gamblers and Amateurs of Gambling”, 1992;
- “On horse racing”, 2000.
The gambling business in the USA is completely 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 peculiarities of the legislation in their favor.
For example, the laws of Illinois, Iowa, Missouri and Louisiana prohibit gambling “on state soil.” Operators offer players the opportunity to visit floating casinos. Gambling clubs are organized on cruise ships and barges. In this way, formal compliance with legal regulations is achieved.
At the same time, most Americans perceive gambling positively. According to the results of opinion polls, eight out of ten US citizens consider it correct to fully legalize the gambling business.
Gambling business in Nevada
The status of the largest gambling center in the United States is assigned to the state of Nevada. It is here that the world-famous cities of Las Vegas, Reno, Carson City are located.
Over 2,000 casinos operate across the state. In total, more than 6,000 tables and about 200,000 video slots are available to visitors. About 50 million tourists visit gambling houses in Las Vegas, Reno and Carson City every year.
All types of gambling are allowed in Nevada. However, the gambling business is highly 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 designated quarter. It is not allowed to organize casinos, slot machine halls near hospitals, churches, schools, sports grounds. There are certain requirements for the area of establishments, the features of their equipment. Carrying out activities in the field of gambling is possible only on the basis of licenses issued by an official regulator.
Gambling Regulators of Nevada
The gambling industry in Nevada is regulated by two government departments at once, working in close cooperation:
1. The Nevada Gaming Commission (NGC) is a state 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;
- application of sanctions in relation to establishments that have violated the current requirements. In addition to imposing disciplinary sanctions and fines, the Commission can revoke the license.
2. The Nevada Gaming Control Board (NGCB) is the body that oversees casino operations. 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;
- control over the fulfillment of financial obligations by operators: conducting audits, timely and full deduction of fees and taxes;
- conducting investigations into possible violations in the operation of a casino, as well as identifying illegal activities;
- inspection of technical and play equipment;
- testing of gaming devices.
Both departments approach their responsibilities with the utmost responsibility. There are several known cases when quite well-known and influential personalities received a refusal to obtain a license.
Condition for obtaining licenses
Today, there are 3 types of licenses in the United States that give the right to conduct a gambling business:
- limited license. Gives the right to open slot machine halls. The institution can have no more than fifteen devices. The document does not give the right to conduct other games, including popular board entertainment. Traditionally, such licenses are issued by the owners of small entertainment centers, bars, restaurants.
- unlimited (unlimited). It is divided into two subspecies. N / R slots only gives the right to open halls with an unlimited number of slot machines, but does not provide for the possibility of installing tables. N / R games & slots allows operators to use any number of slot machines and table games.
- special. Provided to operators for placing slot machines in establishments owned by third parties. The terms of lease 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 out activities, operators are required to draw up similar documents for each employee of the company. Activity for the production and supply of play equipment is licensed separately.
Gambling business in New Jersey
The state of New Jersey is considered the second largest gambling center in the United States. All types of land-based gambling entertainment are also legalized here.
Permission to conduct gambling business 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, 12 gambling establishments are officially operating in the state. The gambling industry in New Jersey is also strictly regulated by law and is closely monitored by specialized agencies.
New Jersey Gambling Regulators
As in Nevada, the New Jersey gambling business is controlled by two regulators:
- The New Jersey Casino Control Commission (NJCCC) is a state government agency. She has multiple powers across most segments of the gambling industry. The structure of the department includes five specialized divisions: the licensing department, the appeals department, the tax department, 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 the current gambling legislation.
Online gambling USA
The development of the online gambling industry in the country is more difficult. Despite the immense popularity of online casinos and bookmakers, their activities in the United States are prohibited by law.
Electronic financial payments for transactions with gambling portals were banned in September 2006. And already in October, a law banning online gambling came into force.
In 2012, the situation changed somewhat. The government has passed a new law to legalize the activities of Internet casinos, poker rooms and bookmakers in individual states. However, so far only Nevada, New Jersey and Delaware have taken advantage of the new opportunities. And even professional experts do not undertake to predict how the situation will develop further.
Video Slots Developers in the USA
Despite the existing 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 land-based establishments and online portals have come from the United States:
- International Game Technology (IGT) is a company headquartered in Nevada, Las Vegas, Reno. Started as a small firm computerizing land-based casinos, it has grown into a huge corporation today. In 2005 IGT was awarded the status of an international company. The manufacturer creates various software for online portals and land-based gambling establishments. The developer’s collection includes several hundred models of slot machines, roulettes, card games, lotteries and scratch cards. Over 50% of video slots installed in US casinos are produced by IGT.
- WMS Gaming is a company established in 1943. The first development of the operator was a pinball machine, produced back in the forties. Today the manufacturer creates innovative slot machines and casino terminals. The list of games has more than a hundred titles. In addition, the developer is engaged in the production of casino platforms and is the creator of the Player’s Life social network.
- Genesis Gaming is a company that specializes in the release of online gambling games. It positions itself as a third-party manufacturer of video slots for companies that create software for Internet platforms. Today the manufacturer enjoys a reputation as one of the best original designers. The company’s devices are available in most large establishments and are often presented under the brands of other, more well-known manufacturers. There are machines available on portals and under the manufacturer’s own name. The Genesis portfolio includes about a hundred machines.
In addition, there are lesser-known companies in the United States that develop slots and support online casinos: CUSTOM GAME DESIGN, SLOT CONSTRUCTOR, CHILCO RIVER HOLDINGS and others.
The USA is a state that has gained a reputation as the “capital of the gambling world.” The number of casinos and poker clubs is increasing here every year. The tourist inflow is growing.
At the same time, careful control of the gambling business allows you to maintain order and avoid negative consequences of gambling.
It is rather problematic to predict alternatives for the development of online gambling. Modern legislation has opened up the prospects for the development of online gambling. But the actual implementation of its provisions is proceeding rather slowly and faces numerous obstacles from the authorities.