Gambling is legal under United State Federal law so every state has the right to allow or prohibit such activity. Many states allow charitable
gaming and lotteries, while fewer states allow commercial and racetrack gambling. State gaming licenses are often administered and overseen by
the state gaming commission.
Gaming license application processes are highly detailed. Most applications require background checks and subsequent investigations. Licenses
are often issued for specific types of activities, in certain places, and at certain times. Common types of licenses are for casinos, racing,
lottery, charitable gaming, and sweepstakes.
Operating an illegal gambling enterprise is a felony in most states. Penalties include fines up to $20,000 and prison sentences up to ten years.