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Delaware, on the other hand, has proven less effective when it comes to raising tax revenue for the state. In recent years, the federal government has relaxed its stance on what types of gaming individual states may authorize. For instance, a DOJ memo in 2011 changed a longstanding legal interpretation of the Federal Wire Act resulted in states gaining the ability to legalize and regulate US online casinos. New Jersey is home to a bustling online gambling industry that provides the state with millions in tax revenue every month. This is by far the largest online gaming market in the US thanks in equal parts to a large population, reasonable tax rates, and regulations that support a competitive operating environment.
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In the memo, the DOJ stated that not only were the lotteries’ plans A-OK but that the DOJ would interpret the Wire Act from now on as applying only to sports betting. The UIGEA has fallen far short of complete effectiveness, but it did convince most major operators to stop serving the US market. A handful of offshore casinos still take Americans to this day, but payments are difficult to manage and regulations are completely nonexistent. The growth of online gambling through the late 90s and early 2000s resulted in lawyers and judges attempting to apply outdated gaming laws to an entirely new technology.
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