Something that isn't often explicitly explained when discussing the legalization of sports betting and other forms of gambling is how state and federal laws interact with one another. For example, it may not be immediately clear what it means for gamblers in your state specifically when you read that the Supreme Court has stricken down the federal sports betting prohibition. Some of the more impactful federal betting laws that have been enacted in the USA include: The UIGEA does not criminalize online gambling; it prohibits financial institutions from processing transactions to/from unlicensed gambling websites. This is a fairly recent development because for years, the Professional and Amateur Sports Protection Act (PASPA) prevented all but four states from authorizing sports betting. That changed after lottery officials in New York and Illinois asked the Department of Justice to issue guidance regarding their plans to begin selling online lottery tickets. Several states have since jumped on the opportunity to legalize, regulate, and tax online casino games and poker. In 2009, lottery officials from Illinois and New York requested an opinion from the Department of Justice on whether or not their plans to legalize online lottery sales would violate the Federal Wire Act.
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