It’s been a while since I’ve listed out the bad states for gamblers. Here’s an updated list. Make sure you read the notes because while all of these states have tax systems that are problematic for gamblers, some impact amateurs while others impact professionals. Note that I do not cover the laws that impact gambling here (such as Washington State’s law that makes online gambling a Class C felony).

1. Which States Don't Allow Gambling
2. Which States Do Not Allow Gambling
3. What States Do Not Allow Online Gambling
4. Which States Do Not Allow Casinos
5. Which States Do Not Have Gambling
6. Which States Do Not Allow Gambling

Connecticut [1]
Hawaii [2]
Illinois [1]
Indiana [1]
Massachusetts [1]
Michigan [1]
Minnesota [3]
Mississippi [4]
New York [5]
Ohio [6]
Washington [7]
West Virginia [1]
Wisconsin [1]

The state passed legislation in early 2020 to permit sports gambling at tribal casinos in-state. The state does not allow for mobile/online wagering. Washington D.C.: Legal. Tennessee has ignored convention regarding gambling laws as well. The state has left the antiquated laws in place dating back to the 1800s. That means the Tennessee authorities have not updated laws regarding online gambling. Like many states, online gambling is a gray area. Gamblers in Tennessee do have nearby options.

NOTES:

3, museums, casinos and theaters in the state were closed, not open. Correction: Jan. 7, 2021 An earlier version of this article incorrectly indicated the coronavirus. While other states that were once dead-set against casino gambling have gone on to host massively-profitable gambling industries (we're looking at you, New Jersey and Pennsylvania), Tennessee lawmakers never moved to regulate or allow any form of gambling. The constitutional amendment does not allow for statewide online and mobile sports betting. 54.1% of voters voted for casino gaming licenses. Properties were required to submit sports betting.

1. CT, IL, IN, MA, MI, WV, and WI do not allow gambling losses as an itemized deduction. These states’ income taxes are written so that taxpayers pay based (generally) on their federal Adjusted Gross Income (AGI). AGI includes gambling winnings but does not include gambling losses. Thus, a taxpayer who has (say) $100,000 of gambling winnings and $100,000 of gambling losses will owe state income tax on the phantom gambling winnings. (Michigan does exempt the first $300 of gambling winnings from state income tax.)

2. Hawaii has an excise tax (the General Excise and Use Tax) that’s thought of as a sales tax. It is, but it is also a tax on various professions. A professional gambler is subject to this 4% tax (an amateur gambler is not).

3. Minnesota’s state Alternative Minimum Tax (AMT) negatively impacts amateur gamblers. Because of the design of the Minnesota AMT, amateur gamblers with significant losses effectively cannot deduct those losses.

4. Mississippi only allows Mississippi gambling losses as an itemized deduction.

5. New York has a limitation on itemized deductions. If your AGI is over $500,000, you lose 50% of your itemized deductions (including gambling losses). You begin to lose itemized deductions at an AGI of $100,000.

6. Ohio currently does not allow gambling losses as an itemized deduction. However, effective January 1, 2013, gambling losses will be allowed as a deduction on state income tax returns. Unfortunately, those gambling losses will not be deductible on city or school district income tax returns, so Ohio will remain a bad state for amateur gamblers.

7. Washington state has no state income tax. However, the state does have a Business & Occupations Tax (B&O Tax). The B&O Tax has not been applied toward professional gamblers, but my reading of the law says that it could be at any time.

We've compiled this legal online betting reference to provide accurate and up-to-date information on the legal online gambling status and gaming options available within each American state. Our goal is to provide a comprehensive state-by-state US gambling guide which will give players all the information they need to make smart decisions about how and where to bet online.

Which States Don't Allow Gambling

This state-specific data will include the state laws governing Internet gambling opportunities in all relevant markets, including online casinos, online poker, and online sports betting.

Each state approaches the legalization of online gambling differently, so it's necessary to detail state-licensed options as well as legal international gambling opportunities. We also address some of the most commonly asked questions about gambling in each state and provide various helpful resources. Such information is covered in greater detail at each specific state page linked below.

Is Online Gambling Legal In My State?

It definitely might be! At this moment, at least 25 US states have legalized and regulated online gambling in some form. However, most states have limited their legalization efforts to sports betting.

Nevertheless, we expect that the majority of these states will also embrace legal online poker games and legal online casino games eventually. Of course, if they don't, you can still wager legally and safely using online overseas operators.

Online Poker & Casino

• Delaware - Online Poker, Online Casinos
• Michigan - Online Poker (launch TBA), Online Casinos
• Nevada - Online Poker
• New Jersey - Online Poker, Online Casinos
• Pennsylvania - Online Poker, Online Casinos
• West Virginia - Online Poker, Online Casinos

Online Sports Betting

Which States Do Not Allow Gambling

• Arkansas*
• Colorado
• Delaware***
• Louisiana**
• Maryland**
• Michigan
• Mississippi*
• Nevada
• New Hampshire
• New Jersey
• New Mexico*
• New York*
• North Carolina**
• Pennsylvania
• South Dakota**
• Washington**
• Washington DC
• West Virginia

*Retail only, online TBA

**Legalized but pending launch

***Retail available, online pending launch

To date, TN is the only US state that has domestic sportsbooks available exclusively online, as there are no provisions in Tennessee sports betting laws to allow for retail brick-and-mortar gambling locations.

Online Lottery

• Illinois
• Michigan
• Pennsylvania
• Virginia

Is Licensed Offshore Gambling Legal In My State?

While the above states offer regulated online gambling, residents in most of them still have the option to use licensed offshore betting sites. Nearly all US state residents, except those from Washington or Connecticut, can legally access licensed offshore online gambling platforms to play online casino games, enter online poker tournaments, and bet on sports.

This is because no local gambling laws in any of the other 48 states specifically prohibit betting real money with an international operator.

Additionally, there are no federal laws that bar the activity, as all US betting mandates apply only to domestic sportsbooks (i.e. the Wire Act) and US-based financial institutions (i.e. the UIGEA), not to players themselves.

What States Do Not Allow Online Gambling

What Is The Minimum Online Gambling Age in the US?

There is no single minimum gambling age in the US, as these are set and regulated by each individual state. The minimum age within each state is affected by various factors such as betting markets, casino game types, venue amenities, and more.

Most states set all their gambling age minimums to 21 years of age, though a few have sports betting options and other kinds of Class II style gambling opportunities for 18+ players.

That said, licensed international online gambling sites offering casino games, poker rooms, and sports betting amusements almost always accept USA players at just 18 and up. These reputable sites also award their members bigger bonuses and perks, more varied electronic casino game options, and better sports betting odds.

U.S. States Where You Can Legally Gamble At 18 And Up

Below, you can learn more about the minimum legal online gambling age by state:

Which States Do Not Allow Casinos

Online Gambling Laws in The United States

Gambling laws can be a complex topic these days, as there a pair of prominent US federal gambling laws to account for, and there are several local gambling laws in every single state.

The reason for this is that the US DOJ has declared that each state has the authority to determine its own destiny concerning both land-based and online gambling. This is especially true now that PASPA (1992-2018) has finally been overturned.

Since 2018's PASPA overturn, a large number of US states have legalized various forms of online gambling (mostly sports betting) within their borders. Many other states are currently in discussions to do the same.

Nevertheless, even if you live in a state without legal local gambling options, you still have them. US players outside of WA and CT are permitted access to multiple licensed, certified, and regulated online gambling sites hosted outside of the United States. This is a nice alternative allowing those players aged 18 and up to enjoy real online gambling while their states get their ducks in a row.

States With Pending Online Gambling Legislation

• Iowa
• Kentucky
• Michigan
• New York
• Virginia

US States That Offer Active Domestic Sportsbooks

Which States Do Not Have Gambling

• Arkansas
• Colorado
• Delaware
• Illinois
• Indiana
• Iowa
• Michigan
• Mississippi
• Montana
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• Oregon
• Pennsylvania
• Rhode Island
• Tennessee
• Virginia
• Washington DC
• West Virginia

US States With Legal Sports Betting Pending Launch

Which States Do Not Allow Gambling

• Louisiana
• Maryland
• North Carolina
• South Dakota
• Washington