Legally gambling will be defined by a state’s statutes, and what is considered to be legal gambling will be specifically referenced. It is important to note that gambling excludes business transactions based on the law of contracts, such as the purchase of stocks, securities, the purchase of life insurance, or the purchase of health or accident insurance. However, many states have some forms of legal gambling.Īlthough the exact legal definition for gambling may differ by state, typically a person engages in gambling if they risk something of value upon the outcome of a game of chance or an understanding that they will receive something of value in the event of a specified outcome. Importantly, when the Federal government prohibits certain forms of gambling, the states must abide by the federal laws, as the regulations of the federal government will trump the state laws. Although state laws regarding gambling vary from state to state, there are federal laws that prohibit certain forms of gambling in every state.
In the United States, gambling is regulated by both the Federal government and by individual state governments. Are You a Lawyer? Grow Your Practice What Is Legal Gambling?
