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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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Paddy Power was established in 1988 as an Irish sports betting firm while Betfair was founded in 1999 as the world’s first major exchange betting platform. The two merged in 2016 to form one of the largest online gaming operators on the planet. However, the law provides clear exemptions for online racing betting, daily fantasy sports and any other form of gambling that is legal at the state level other than sports betting. This is why the licensed casinos that have opened in New Jersey, Delaware, and other states since then are unaffected by the UIGEA.