Federal Statutes Implicated by
Online Gambling
Online gambling is a great way to enjoy the convenience and excitement of games
of chance. Many states have made it legal for gamblers to place bets on sports
events, play virtual poker, or play casinos online. However, there are some federal
statutes that are implicated by illegal internet gambling Malaysia live casino. These include the Wire Act,
the Travel Act, the Illegal Gambling Business Act, and several other federal criminal
statutes.
The United States has passed several laws in recent years that have influenced the
legal status of gambling on the Internet. For example, the Wire Act prohibits any
illegal gambling on sporting events, and the Travel Act bars any player from using
an interstate facility for unlawful activities. In addition, the Illegal Gambling Business
Act and Racketeer Influenced and Corrupt Organizations (RICO) provisions make it
illegal to operate an illegal gambling business.
Several states have also adopted regulations to allow players to participate in
intrastate gambling. This includes Poker, DFS, and bingo. Although these regulations
are not as extensive as in some other areas, they have been able to keep the illegal
market from taking over. Moreover, these regulations have opened the door to
partnerships between land-based casinos and the online gambling industry. Some of
these partnerships include the World Series of Poker, which shares player pools with
New Jersey’s Mohegan Sun Casino.
In 2002, a report published by the General Accounting Office, now the Government
Accountability Office, provided an overview of the legal issues involved in gambling.
This report cited the state law and other relevant statutory requirements, such as
the CRS Report RS21984 on remote gaming. While the report was not able to
provide a detailed discussion of the First Amendment, the study did suggest that the
commercial nature of the gambling business may serve as a suitable bulwark
against the Constitution’s governing powers.
In addition to the Travel Act, the Illegal Gambling Businesses Act, and the Racketeer
Influenced and Corruption Organizations (RICO) provisions, there are seven federal
criminal statutes that are implicated by the illegal use of the Internet. One such
statute is Section 1956, which creates several separate crimes. It establishes
laundering for a number of purposes, including to disguise, to evade taxes, to
conceal, and to promote illicit activity.
As more states begin to enact their own gambling regulations, there will be an
increase in the number of cases brought to court by the government. However, the
question of how these laws apply to poker has become a matter of debate. There is
no one-size-fits-all approach to this issue, and many state attorneys general have
expressed concern that the Internet could be used to illegally bring gambling into
their jurisdictions.
Online gambling is a growing industry, estimated to generate over $40 billion
annually globally. While some countries ban or restrict this activity, it remains legal
in several US states, including Nevada, Michigan, and Mississippi. Additionally, online
casino and sports betting became legal in Nevada in 2013. Meanwhile, New Jersey
and New York have recently started to regulate the online gambling industry as well.
