Why is online sports wagering limited to being physically located within a state instead of where the legal resident of the state happens to be? I am a legal resident of Massachusetts, but when I cross the state line into one of our neighboring states, I'm prohibited from making online sports wagers even if that state allows online wagering for the residents of that state (such as Connecticut). Hoping you can provide some clarification as to why the regulations were written in that manner.
The more one probes into this issue, the more byzantine it becomes.
DraftKings, the number-two online sports book in the U.S., informs customers that they may sign up from any state, regardless of whether it permits sports betting or not. However, “You won’t be able to place a real-money bet unless physically located in a state that permits sports wagering, regardless of your residency.” This is why so many punters living in New York state, until it started allowing sports bets in January 2022, had to drive or commute to New Jersey to have a flutter.
As University of Nevada-Las Vegas Distinguished Fellow Anthony Cabot explains: “A sports enthusiast residing in Massachusetts cannot place bets from a different state due to the Federal Wire Act. This legislation restricts sports books from accepting wagers across state borders, regardless of the legality of sports betting in the destination state. Consequently, sports books employ geolocation software, utilizing GPS or other technologies, to identify the user's location and prevent any wagers originating from outside the state. Within the industry, this practice is commonly referred to as ‘ring fencing.’”
New Jersey, for its part, is happy to inform you that you don’t need to be a citizen to wager, but you do have to be within Garden State boundaries. “So if you live in New Jersey, but are out of state, you can’t bet with New Jersey sports books. If you are not a resident of New Jersey, but are in the state, you can bet with their sports books.”
Getting back to what DraftKings said, the normally anti-gambling Philadelphia Inquirer offers a clarification. “Even though residents in illegal states are unable to place bets, you’re allowed to look at odds, sign up for an account, and even deposit and withdraw (at most sports books),” it reported. “If you’re getting ready to travel into a state where sports betting is legal, you may want an idea of what the odds are looking like ahead of time. Or you may just be curious what the line on your favorite team is on a given night.”
Thus, if you’re signing up online, don’t get cute. If you’re in a non-wagering state, put that down in your information. Don’t give the address of your parents or the Red Roof Inn where you’ll be staying in a betting-friendly state.
“Sports books use the last four digits of your Social Security number to verify your identity and if their info doesn’t match what you entered, you’ll need to jump through verification hoops to get your account set up,” reports the Inquirer. Having recently had some experience with “verification hoops,” we can strongly advise you that they’re something you want to avoid.
And if you’re to be properly geolocated, keep your mobile phone’s location service on. It will make all the difference if you’re in a state like North Carolina, where online sports betting is now legal, versus South Carolina, where it’s not. If you’re in the former and your phone is off (and you live in South Carolina instead), the geofencing will default to your place of residence, ixnaying the wager.
Finally, while your login credentials will lock you out of betting in a non-wagering state (California is currently the biggest), they will be your open-sesame if you travel to, say, Nevada.
The bottom line is that if you’re in a state where sports wagering is legal, all bets are on, so to speak. If you’re in a state that forbids it, there’s no workaround that will help you.
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