Online poker laws in the US are somewhat complicated and depend on which state you want to play poker in. At a federal level, online poker is legal. However, the Federal Wire Act makes it illegal for wagers to be placed across state lines, effectively prohibiting poker players from playing against other players in different states.

The act makes it difficult for players to deposit money into and withdraw money from poker sites. Currently, eight states allow online poker within their borders, and a handful have signed a Multi-State iGaming Agreement that enables interstate play and payouts.

Online Poker Global Popularity

Online poker sites bring players together from countries around the world with millions of people playing every week. The massive pool of players not only means great gaming opportunities for poker lovers, but it also means there are games with varying stakes and tournaments with huge prize pools. According to sports editor Graziella Calleja, the best sites also provide a safe gaming environment for players around the world.

The Interstate Wire Act

The Interstate Wire Act, which is often referred to as the Federal Wire Act, is an old piece of legislation dating back to 1961, long before the Internet was even a thing. It states that betting or wagering using “a wire communication facility” is prohibited between states or overseas.

There has been a lot of contention surrounding the enforcement of this act, and especially how it relates to online poker. Poker supporters highlight the fact that the act cannot reasonably govern a technology that wasn’t invented for decades after it was written. Opponents of online poker highlight that it directly prohibits any form of interstate betting that uses a wire communication facility and that the Internet qualifies as such.

The Interstate Wire Act was originally written to prevent punters from ringing up a bookmaker in another state to place bets. A judgment by the United States Court of Appeals ruled, in 2002, that the act does not prohibit games of chance. While the Interstate Wire Act is more than 60 years old, its laws remain unless they are directly overruled by another act.  

The Unlawful Internet Gambling Enforcement Act

By 2006, online poker had become popular, and many poker sites offered their services to players based in the US, buoyed by the Court of Appeals judgment of 2002. In 2006, this progression was halted by the contentious Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). According to several reports, only the senators who had drafted the bill even read it before it was passed during the last session before elections took place.

This particular legislation made it illegal for gambling businesses to accept payments from players on the Internet for games that are subject to chance, but it did specifically exclude games of skill. Anybody who has played a hand of poker will attest to the fact that it involves a lot of luck, but it is also a game of skill.

Regardless, the bill did not make playing or wagering on poker illegal, but it did make it illegal for gambling companies to accept bets from players. It was determined in a 2011 Department of Justice ruling that the UIGEA was limited to sports betting. The decision was contested several times and the DoJ pedaled back on this decision in 2018, stating that the act was not limited to just sports betting. In 2019, A New Hampshire judge once again determined that the act should only be limited to sports betting.

Interstate Gambling Agreement

In 2014, Nevada, Delaware, and New Jersey signed up to offer interstate gambling which would enable players from within the three states to play against one another in online pools. Michigan joined the agreement in 2022 and was closely followed by West Virginia, which followed suit in 2023.

The exact state of online poker legality in the US is up in the air. Generally, players from states that have joined up to offer interstate gambling can play online poker against one another. And, as operators regain some confidence in the legality of offering these services, federal player pools may continue to increase. However, it is worth noting that states and even federal government departments could step in to “clarify” the different acts again, in the future. Some clarification is likely, especially given the emergence of cryptocurrency and its use in online gambling. 

Conclusion

Currently, many players use offshore poker sites to play, especially thanks to the acceptance of cryptocurrency payments and Web 3.0 features. Offshore sites are not governed by the same laws as those based and licensed in the US, and because they offer games to players from around the world, they often have some of the biggest poker player pools available.

It is also worth noting that online poker is only fully regulated in the states of Connecticut, Delaware, Rhode Island, Nevada, New Jersey, Pennsylvania, West Virginia, and Michigan anyway. Some other states are currently considering regulating online poker, but changes to state laws can take years to pass.

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