United States: online gambling payment rules
In the United States, federal law (UIGEA and Regulation GG) requires payment systems to block unlawful internet gambling, while each legal state sets its own deposit and withdrawal rules. A growing number of states ban credit card funding; New Jersey, Pennsylvania and Michigan still list credit cards among approved methods.
- Coverage
- Federal law and selected states with legal online gambling
- Sources checked
- 24 October 2026
- Next review
- 24 January 2027
Key points
- Regulation GG requires card, ACH, check, wire and money-transmitting systems to have policies to identify and block unlawful internet gambling; compliance has been required since 1 June 2010.
- Lawful intrastate gambling, authorised by state law with age, location and data-security requirements, is excluded from UIGEA's definition.
- Credit card bans confirmed in state law: Massachusetts and Tennessee (in force), Maine and Virginia (enacted).
- Michigan requires withdrawals to be honoured within 10 business days; New Jersey requires card deposits to be refunded to the card first.
Federal law: UIGEA and Regulation GG
The Unlawful Internet Gambling Enforcement Act defines "unlawful Internet gambling" as placing, receiving or knowingly transmitting a bet using the internet where the bet is unlawful under federal or state law where it is made (31 U.S.C. 5362). It excludes bets made entirely within one state where state law expressly authorises them and requires age and location verification and data-security standards. This exclusion is what lets state-licensed online casinos and sportsbooks take payments.
Regulation GG (31 CFR Part 132, and the Federal Reserve's identical 12 CFR Part 233) applies to five designated payment systems: automated clearing house, card systems, check collection, certain money transmitting businesses and wire transfer systems. Non-exempt participants need policies reasonably designed to identify and block restricted transactions. For card systems, the rule accepts either due diligence on merchant accounts or a coding system that identifies restricted transactions in authorisation requests. The joint Treasury and Federal Reserve preamble to the final rule said the agencies expected coding to be "the method of choice" for card participants. The rule took effect on 19 January 2009 with a compliance date of 1 December 2009, and the Federal Reserve extended the compliance date to 1 June 2010.
In practice, card coding means the merchant category codes schemes use for gambling. Visa's Merchant Data Standards Manual (October 2026) requires US transactions that qualify for MCC 7800 (government-owned lottery), 7801 (internet gambling) or 7802 (government-licensed horse and dog racing) to use those codes, and MCC 7995 otherwise.
State credit card bans
| State | Status | Source |
|---|---|---|
| Massachusetts | Ban in force (sports wagering) | M.G.L. c.23N § 13(d): an operator shall not accept "a credit card". |
| Tennessee | Ban in force (sports wagering) | Accounts "may not be funded using credit": Sports Wagering Council memo (12 April 2022), citing T.C.A. § 4-49-118 and SWAC rules. |
| Maine | Ban enacted (sports wagering and internet gaming) | LD 2080, Public Law 2025, ch. 628. Effective date not stated in the official summary. |
| Virginia | Ban enacted (sports betting) | HB 515 (2026) passed both chambers (House record); approval and 1 July 2026 effective date seen only on bill trackers (secondary). |
| Illinois | Ban adopted as proposed rule (sports wagering) | Gaming Board release, 24 April 2025; final effective date not confirmed. |
| Colorado | Ban reported enacted (SB26-131) | State bill page still showed "under consideration" when checked; signing reported by the press (secondary). |
| Ohio | Proposed rule change | Casino Control Commission proposal (May 2026) to remove credit cards as a funding source. |
| New Jersey, Pennsylvania, Michigan | Credit cards listed as approved funding | See the next section. |
Deposit and withdrawal rules in three large markets
New Jersey
N.J.A.C. 13:69O-1.3 (official text read on a legal publisher's copy) lists approved funding methods, including a patron's credit or debit card, ACH transfer, reloadable prepaid cards verified as issued to the patron, cash at an approved cashiering location, and gift cards limited to $500 per gaming day. Before any other withdrawal, a balance up to the amount deposited by card "shall be refunded to the patron's credit or debit card account" where the issuer allows it. The rule sets no general withdrawal deadline, but once a money-laundering review is cleared "the operator shall immediately process the withdrawal."
Pennsylvania
58 Pa. Code § 812a.7 lists cash, cheques, wire transfers, "a player's credit card or debit card, including prepaid cards", reloadable prepaid cards and ACH. Operators may not extend credit or allow negative balances. We did not find a Pennsylvania withdrawal-timing rule.
Michigan
Michigan's internet gaming rules list credit and debit cards, ACH, wire transfers and prepaid cards (R 432.655a). Under R 432.655d, the operator "must honor the authorized participant's request to withdraw funds within 10 business days". It may delay only on a good-faith belief of fraud or a rule breach, and must then send written updates every tenth business day. A withdrawal counts as honoured once processed, even if a processor or issuer delays the funds.
Federal anti-money laundering: FinCEN
Under the Bank Secrecy Act, a licensed casino or card club with gross annual gaming revenue over $1,000,000 is a financial institution, according to FinCEN guidance. Casinos must report currency transactions of more than $10,000 in a gaming day, aggregating multiple transactions. In a 2019 speech, FinCEN's director said unlicensed internet gaming sites are not casinos for these purposes and are likely money transmitters. We did not find a formal FinCEN rule that expressly applies the casino rules to state-licensed online operators.
Questions about US gambling payment rules
Is it legal to use a credit card for online sports betting in the US?
It depends on the state. Massachusetts and Tennessee ban credit card funding, Maine and Virginia have enacted bans, Colorado's ban is reported by the press as signed, and Illinois and Ohio have moved towards one. New Jersey, Pennsylvania and Michigan list credit cards among approved methods, although many operators have stopped accepting them.
Does UIGEA make online gambling illegal?
No. UIGEA targets payments for gambling that is already unlawful under federal or state law, and requires payment systems to block them. It excludes intrastate gambling that a state expressly authorises with age, location and security safeguards.
How long can a US operator take to pay a withdrawal?
Rules vary. Michigan requires withdrawals to be honoured within 10 business days unless the operator suspects fraud or a rule breach. New Jersey requires immediate processing once any money-laundering review is cleared. We did not find a fixed deadline in Pennsylvania's rules.
Sources
- 31 U.S.C. 5362 (GovInfo); Regulation GG, 31 CFR Part 132, and Treasury preamble (November 2008)
- State statutes, regulator memos and bill records linked in the table above
- N.J.A.C. 13:69O-1.3, 58 Pa. Code § 812a.7, Mich. Admin. Code R 432.655a and 432.655d (official text via legal publishers' copies)
- FinCEN FAQ FIN-2007-G005 and 2019 speech; Visa Merchant Data Standards Manual (October 2026)
- All sources checked 24 October 2026.