Why Does the Law Force Studios to Be In-State?
The primary reason live dealer studios must reside within state borders is the Interstate Wire Act of 1961. This federal law prohibits transmitting bets or information assisting bets across state lines. Because online casino gaming is regulated on a state-by-state basis, all aspects of the wager must stay within one state. This includes the physical spin of the roulette wheel or the deal of the card.
- The Wire Act: Prevents any betting data or live streams from crossing state lines for real-money gambling.
- State Licensing: State regulators like the NJ Division of Gaming Enforcement must inspect the physical studio space.
- Geofencing: Software ensures the player is physically inside the state where the studio operates.