Social gambling is allowed in some states.
Gambling at home, whether in the form of a friendly poker game or a raffle at a backyard barbecue, can raise legal questions depending upon the nature of the gambling and the state in which the gambling occurs. Each state has its own policy for defining and enforcing home gambling laws.
Profit
Many states reserve their harshest penalties for home gambling in cases where the homeowner or game organizer makes a profit from the game. This is known as professional gambling and it is the case for games where players must pay an entry fee. For example, according to the Washington State Gambling Commission, participation in a professional gambling event constitutes a misdemeanor, while organizing such an event can be a Class B felony.
Social Games
Some states acknowledge a category of gambling called "social gambling." This refers to games where the object is not to produce profit for the organizer but to allow friends to wager small amounts of money on a game. In Alaska, where gambling is illegal, players may use the excuse of a social game as an affirmative defense in court. This only applies when there have been no house odds or a house player (such as a craps dealer) involved in the game. Arizona also recognizes social gambling as legal when there is no profit for the game organizers and all players compete with equal odds.
Premises and Establishments
Even states that allow social gambling generally forbid gaming establishments. Sometimes a gambling establishment is called a gaming premises in state law. Both terms refer to a space where gambling is the primary purpose. This means that it would be illegal to operate a home casino, but legal to engage in social games in a room that is usually a functional part of a private home.
Licensing
Each state issues licenses for gambling establishments, including stores that sell state lottery tickets, casinos and poker rooms. However, some states also require licensing for home gambling. This is the case in California, where even social games in the home are illegal without a gaming license from the state.
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