Online casinos in the United States operate within a complex and varied regulatory environment. Here are key points on how they function:

State-Specific Regulation: Online gambling laws vary significantly from state to state. While gambling is legal under U.S. federal law, each state has the autonomy to regulate or prohibit online casino gambling within its borders [6].

Legalized States: Only a few states have legalized online gambling as of 2024. These include states like Michigan, which has online casinos operating in partnership with existing physical casinos and under the oversight of state lotteries [4].

Licensing and Regulation: Online casinos must be licensed and regulated by the state where they operate. Players should look for state regulator logos on casino websites to ensure legitimacy [5].

Offshore Online Casinos: Due to the restrictions in most states, many players in the U.S. turn to offshore online casinos. These casinos operate legally by being registered in countries where online gambling is legal, allowing them to accept players from the U.S. [2].

Participation Process: To gamble online in states where it is legal, players typically need to create an account with the official online platform, which could be associated with state lotteries or licensed private operators [1].