The Federal Government’s Enforcement of Online Gambling Laws

online gambling

Online gambling is a game of chance played through the Internet. These games include sports betting, casinos, and virtual poker. However, this form of gambling can be deceiving and has the potential to lead to huge losses. It is important to be responsible when using the Internet for gambling. You should also be aware that illegal Internet bets can result in prosecution.

According to the Unlawful Internet Gambling Enforcement Act (UIGEA), unlawful Internet gambling is placing bets or receiving bets, or transmitting or receiving any other bet or wager. In addition, the statute creates several distinct crimes that may be committed when using the Internet for illegal gambling. Some of these are laundering, which means laundering money to conceal the origins of the money; and facilitating the initiation of criminal or illicit activity. The federal government has seized millions of dollars in the past from companies that have violated UIGEA.

Currently, there are three states that have legalized online gambling. Nevada has legalized online poker, and New Jersey and Pennsylvania have legalized gambling at online casinos. Other states are considering passing legislation to legalize online gambling. There have been many challenges to the enforceability of the federal law, including those based on the Commerce Clause and the Due Process Clause. The arguments have been largely ineffective.

One of the biggest arguments against the enforcement of the federal law is that it will make it harder for states to regulate the business of gambling. This is particularly true when players are utilizing facilities from other states to conduct illegal activities. This can lead to a conflict between the state’s enforcement policy and the interstate or foreign elements of the transaction. The Federal Communications Commission is authorized to regulate the furnishing of facilities. It has the power to prohibit the leasing of such facilities. The commission may also discontinue the maintenance of such facilities.

In the past, there have been attacks on the enforcement of the federal gambling laws based on the First Amendment. This argument is not likely to be effective, since the Commercial Activities Clause, which gives the Treasury Department authority over commercial activity, does not provide a guarantee that the United States has the right to prevent speech.

In December 2002, the General Accounting Office published Internet Gambling: An Overview of Issues. This report noted that state officials had expressed concern that the Internet could be used to bring illegal gambling into their jurisdictions. The report also cited fraudulent casinos and scams as the major problems in the online gambling industry. It recommended the creation of an online gambling oversight office within the Treasury Department. This office would supervise and oversee gambling transactions.

In 2013, New York Republican Congressman Peter King introduced the Internet Gambling Regulation, Consumer Protection Act of 2013. This bill would set up a common federal standard for online gambling. It would also allow banks to supervise and monitor online gambling transactions. This bill also included a carve-out for games of skill.