An Overview Of The Gambling Laws In New York State

Nov 09, 2019  Legislators will certainly deal with an online poker law in early 2014. If all goes to perfection, online poker players might be able to play online poker from their homes in New York State by the end of 2014. But look to early 2015 for a date with online poker implementation in New York State.

New York is often thought of as a strictly anti-gambling State. They drove the internet gambling crack-down known as ‘Black Friday’ in 2011 and were instrumental in clarifying the scope of the Wire Act. Nowadays, things are swinging towards the progressive side, with an act to authorize commercial casinos in addition to the tribal ones, and more liberal horse racing betting laws than many States. This article takes you through all you need to know about the gambling laws in New York State.

First of all below, we go back in time and begin a quick-fire history of gambling laws in New York State that takes us right up to the present day. After that I have gone through the different types of gambling one-by-one, explaining the legality of each. Next things go to the more detailed level, with excerpts from the current laws and a legal timeline too. At the end of this page you will find a summary and a look at possible future scenarios.

New York State Gambling Laws – A Brief History

This State are pioneers in the world of gambling – unfortunately not in a positive way, as they were the first to constitutionally ban it! After the 1821 ban there were further bans in 1864 and 1894, which heralded the start of the prohibition era that lasted until the end of the 1930s. Gambling still took place on a massive scale during this era, controlled in underground casinos by the ‘families’ who made up the Mob.

The first legal gambling in New York State was horse racing. In line with many other States this was based on pari-mutuel (or pooled) betting systems, and only permitted on the track. Since then the racing tracks have been allowed to use Simulcast systems (which show races from other tracks around the US) and have gaming machines for their customers – making them into ‘racinos’. These are now popular entertainment venues.

Things developed slowly from here, with Bingo games going legal in 1957, a lottery in 1966 and then charity gaming following in 1970.

The breakthrough for casino and poker fans came much later, when casinos on tribal lands were allowed to operate the top-tier ‘class 3’ games which include slots and table games. This led to a boom in casino building by the Indian tribes, and gives New Yorkers the wide choice of casino and poker rooms they know today. The tribal casinos will soon be joined by commercial ones. In 2013, legislation based on Economic development for the upstate area was passed that will enable several new casinos to open.

One interesting aspect of New York State’s gambling laws is that players in any form of game are not the target for criminal sanctions. While this State is very hard on organizers of illegal gambling, players – including in poker home-games – are not the targets.

What Forms Of Gambling Are Currently Legal?

Casino Gambling: Yes, you can enjoy casino games at several Tribal casinos in this State. More recently a bill for licensing commercial casinos in upstate New York was passed, with the first licenses expected during 2014.

Online Casinos: No, there is nothing explicit on the statues concerning internet gambling, however New York drove the 2011 Black Friday clampdown of online gambling sites through their courts. This is a clear indication that this State believes that internet gambling is illegal based on their existing laws and the Federal codes.

Live Poker: Yes, you can enjoy live poker games in Tribal casinos. Social poker games have an explicit carve-out too under State law. As long as nobody is making a profit from the game, and it is played on equal terms, then it is expressly not considered illegal.

Online Poker: No, as with online casinos it is considered illegal to operate online poker games. Note that this State does not criminalize players of gambling games – so there is nothing to stop you from participating.

Sports Betting: Yes, Pari-Mutuel betting is allowed in this State, including remotely, you can also enjoy Simulcasts of races. Racetracks are allowed certain types of lottery / bingo like gaming machines – making them into ‘racinos’.

Lottery Betting: Yes, New York has a lottery and offers the inter-State games too.

Bingo Games: Yes, Bingo and raffle type games fall under the Charity Gaming carve out (though games need to be individually approved). There are no provisions for charity poker games.

New York State Gambling Laws – Timeline Of Key Statutes

Other than tribal casinos and limited gambling opportunities at racetracks, New York has not historically been a gambling-friendly place. Add to this their involvement in ‘Black Friday’ (the internet gambling crackdown) and you might get the impression that a trip to a neighboring State could be required. However, there are some signs of progress, especially a new bill for licensing State casinos in the underdeveloped up-State areas – which shows things are moving in the direction of liberalization rather than prohibition here.

The statute books have broad definitions of both gambling and games of chance – designed to catch all of the forms of gambling in one sweeping catch-all definition. For poker fans, the game of skill argument is not going to help you in this State. One silver lining is that simply playing in a game is exempted from criminal sanctions here, New York prefer to go after the profiteers, organizers and promoters of gambling games.

Here are the key passages, firstly the contest of chance rules:

“1. “Contest of chance” means any contest, game, gaming scheme or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein. “ (From: Sec 225.00 Gambling offenses; definitions of terms)

And the broader ‘Gambling’ definition: “2. “Gambling” A person engages in gambling when he stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, upon an agreement or understanding that he will receive something of value in the event of a certain outcome. “

Here are the key dates in the New York gambling legislation timeline:

1821: An amendment to the 2nd constitution of New York contains its first recorded ban on gambling.

1864: Lotteries that were prevalent at this time were banned (these were more like the raffles we know today). 30 years later, in 1894, all other forms of gambling were also banned in line with many other States this was the start of the puritanical ‘prohibition era’.

1939: Pari-Mutuel betting was legalized for the first time.

1957: Bingo games for charity were legalized.

1966: New York’s State lottery was legalized.

1973: Oversight board for horse racing was created, called the ‘State Racing And Wagering Board’.

1993: Indian Reservation Casinos legalized, with the Oneida Tribe opening their doors that same year. This followed the 1988 Federal ‘Indian Gaming Regulation Act’. Many more casinos would open their doors over the next 20 years.

2011: The courts in the Southern District of New York launched a clamp-down on online gambling sites which is known as ‘Black Friday’. This cited Federal Laws (the UIGEA) rather than State ones. However, if residents of this State were in any doubt about their government’s stance on online gambling, this clarified things.

2013: Amendment passed to license Non-tribal (commercial) casinos, this is part of a development plan for up-State New York.

New York State Gambling Laws – Summary + Look To The Future

As long as you are not the organizer of a for-profit unlicensed gambling operation in New York State, you are not breaking the law. There are plenty of licensed tribal casinos and racinos to choose from, and opportunities to enjoy bingo and charity gaming too. The recent legalization of commercial casinos is an encouraging sign for New York residents – that the old laws in this area are starting be replaced with progressive new legislation.

Whether New York will enter any regulated online gambling markets is difficult to say. On one hand they have made their gambling laws more liberal recently. On the other hand they did lead the crack-down against what they perceived as illegal online gambling in 2011.

Useful Resources:

Gambling Laws US

Statutes

History

Gambling Expansion Approved

Home» US Poker Laws » State Laws

The gambling laws of US states are best collectively described as a mashup, a tangle of differing philosophies, definitions and priorities.

Below you'll find a quick synopsis of gambling laws in each US state, along with a link to a detailed report for every state. Each review provides a plain-language interpretation of the state's gambling laws, an analysis of the legal status of online gambling and poker in general in the state.

The US state gambling laws include a review of recent developments relevant to online poker players. The state pages on this site are updated often to reflect the most recent developments for legal poker in the USA.

To help you navigate this page better, we've provided an interactive map. Simply click on a state within the map and the page will load that particular section for you.

Alabama Poker: State allows very limited types of gambling and considers poker to be gambling. Severe punishments for both players and operators. State law does not directly mention online gambling.

Alaska Poker: No lottery and very little regulated gambling in this state. Poker could qualify as game of skill, but case law suggests it is considered gambling. No specific law regarding gambling over the Internet.

Arizona Poker: One of a handful of states that expressly prohibits online gambling. Several forms of regulated gambling available. State law (and enforcement) primarily targets those who profit from illegal gambling activity.

Arkansas Poker: Broad definition of illegal gambling. Some parts of state law may have direct applicability to online gambling. Individual gamblers are not a focus of criminal charges related to illegal gambling.

California Poker: Offers a variety of regulated gambling options. No specific law addressing the issue of online gambling. Seems close to passing some sort of regulation, likely poker-only.

Colorado Poker: Expansive definition of gambling underpins strict approach to unregulated gambling. Poker is considered gambling. While law does not address online gambling specifically, state officials contend such gambling is illegal.

Connecticut Poker: Poker specifically mentioned in statutory definition of gambling. No law dealing directly with Internet gambling or online poker. Home poker games legal if no rake is taken.

Delaware Poker: Recently passed law to regulate some forms of online gambling. Players face only minor criminal exposure for participating in illegal gambling.

Florida Poker: Poker hotbed has very restrictive anti-gambling laws. Very few ways to play poker or gamble and be within the letter of Florida law. State has seen a handful of failed attempts to regulate online poker.

Georgia Poker: Poker players have almost no regulated - and therefore no legal - options for real money poker. State has constitutional ban on almost all forms of gambling.

Hawaii Poker: No regulated gambling of any sort in the 50th state. While online gambling not addressed directly, several aspects of state law could still apply. Individual gamblers not a primary target.

Idaho Poker: Possibly the broadest definition of gambling in the US. Poker directly mentioned. Online gambling possibly addressed by constitutional prohibition on gambling. Penalties relatively minor for players and operators.

Illinois Poker: Broad selection of regulated gambling and severe approach to unregulated gambling. State law specifically prohibits the operation of an online gambling site, but not necessarily playing at one.

New York Online Poker Legislation

Indiana Poker: State takes aggressive approach to illegal gambling. Players appear to be targets along with operators. Indiana has a law outlawing the operation (but not the use) of online casinos.

Iowa Poker: Does not draw a clear distinction between participants and operators. Severe potential penalties for both. State seems poised to pass some sort of online gambling regulation soon.

Kansas Poker: A litany of regulated options contrasts with a strict approach to unregulated gambling. State lottery oversees commercial casinos, a unique arrangement. No apparent momentum for online gambling regulation.

Kentucky Poker: Has legal online betting on horse racing. Practically zero criminal risk for those who merely participate in illegal gambling, but substantial exposure for those who profit from or otherwise advance such activity.

Louisiana Poker: Vague definition of gambling creates legal uncertainty. State law does specifically prohibit gambling online or running online gambling business.

Maine Poker: No penalties for mere players who take part in illegal gambling. Home poker games legal under Maine law. No direct mention of online gambling or online poker.

Maryland Poker: Gambling law differs county-to-county. Generally stiffer potential penalties for players than average. No direct reference to online gambling, but Maryland law has been to used to prosecute several operators.

Massachusetts Poker: Very broad definition of illegal gambling. Players face substantial charges in theory, but enforcement efforts do not appear to target players. No specific law covering gambling over the Internet.

Michigan Poker: Operators and players alike face harsh penalties in Michigan, which specifically identifies poker as a form of gambling. Internet gambling not addressed directly by any part of the law.

Minnesota Poker: State provides some forms of regulated gambling. Poker is likely considered gambling. Home poker games are excluded from anti-gambling law given that no one profits from running the game.

Mississippi Poker: Poker specifically identified as gambling. Minor penalties for those who are only players in illegal gambling activities. No part of Mississippi law deals specifically with Internet gambling.

Sources Of State Law

Missouri Poker: Possibly the most severe penalties for players of any state in the nation. Lacks any law constructed to deal with online poker, but state officials assert such gambling is illegal under existing law.
Montana Poker: Law expressly prohibits online gambling but seems primarily focused on operators and not players. Otherwise, both players and operators involved in illegal gambling face stiff penalties.
Nebraska Poker: Difficult to identify a way in which playing poker for money could be legal in Nebraska. Little to no apparent interest in regulating online poker or online gambling.

Nevada Poker: First in the nation to issue licenses to online poker operators. Anti-gambling laws almost exclusively focused on those running illegal gambling operations and not on mere players.

New Hampshire Poker: Fairly narrow definition of gambling that may or may not include poker. State law doesn't appear to cover online gambling directly.

New Jersey Poker: Plenty of regulated gambling options available in New Jersey. State appears close to passing online poker regulation (and perhaps a larger package of online gambling regulations).

What Is State Law

New Mexico Poker: A very broad definition of illegal gambling but no direct mention of online gambling or online poker. Home poker games apparently illegal under state law.

New York Poker: State anti-gambling laws formed heart of Black Friday indictments. Home poker games allowed. Despite Black Friday role, no mention of online gambling in state law. Players face little risk or liability in New York.

North Carolina Poker: No definition of 'game of chance' creates confusion in state gambling law. Relatively weak penalties for anti-gambling law violations. State may soon regulate so-called 'Internet sweepstakes' cafes.

North Dakota Poker: Very broad definition of illegal gambling, but little apparent enforcement. Has some potential to regulate online gambling in the near term. Home poker games legal or illegal based on stakes involved.

Ohio Poker: Poker specifically defined as 'game of chance.' Home games legal at any stakes. State seems to have significant likelihood of regulating online gambling in near term.

Oklahoma Poker: Tons of regulated gambling options, but very stiff penalties for unregulated gambling. Transmission law may cover Internet gambling.

Oregon Poker: Law specifically prohibits financial transactions related to internet gambling. Poker for real money legal in a variety of regulated formats.

Pennsylvania Poker: Players in illegal gambling activities face no liability. State has somewhat confused approach to gambling thanks to lack of clear statutory definitions. Online gambling regulation seems fairly likely in next two years.

Rhode Island Poker: Ambiguous gambling law but players do not appear to be targets of the law or enforcement efforts. Rumored interstate poker partner for Delaware.

South Carolina Poker: State Supreme Court will soon decide if poker is a form of gambling. Centuries-old laws regarding gambling still on the state's books make many common games such as Monopoly technically illegal.

South Dakota Poker: Very aggressive approach to illegal gambling. Very broad definition of what activity constitutes illegal gambling. State law explicitly criminalizes operation of online gambling businesses.

Tennessee Poker: More or less prohibits all forms of gambling, save the state lottery and some forms of charitable gambling. Law does not directly tackle online gambling.

Texas Poker: Significant factions of state government and the public vociferously opposed to gambling. Utilizes very broad definition of gambling that includes betting on any activity involving any chance.

Utah Poker: No regulated forms of gambling. Pre-emptively opted out of any federal law regarding online poker in 2018. Least likely of the 50 states to regulate online poker or gambling.

Vermont Poker: Relatively limited law regarding gambling. Minor penalties and low-priority enforcement for individual gamblers.

Virginia Poker: State takes what amounts to an average approach to anti-gambling laws and enforcement. No law specifically designed to cover online gambling.

Washington State Poker: Only state to make placing a bet online a felony. State allows a wide variety of regulated gambling options, including commercial and tribal casinos.

West Virginia Poker: State allows wide array of regulated gambling. Minor penalties for players engaged in illegal gambling. Frequently mentioned as potential interstate online poker partner for neighbor Delaware.

Wisconsin Poker: Home to a handful of regulated gambling options. Fairly strict laws regarding unregulated gambling and higher-than-average arrest numbers for such charges.

Wyoming Poker: Very broad definition of illegal gambling. One of a few US states to not have a lottery. Relatively minor penalties for engaging in illegal gambling.

District of Columbia Poker: Home to nation's capitol and an attempt to regulate online gambling that failed in 2018. Anti-gambling laws relatively limited.