There are a number of federal and state statutes that a person can be charged with breaking if he or she engages in illegal online gambling. However, some of these laws have been challenged on constitutional grounds. The First Amendment has been cited as one of the reasons why these statutes have been deemed obsolete.
One of the most obvious examples of the legality of online gambling is the fact that it has been regulated. State laws vary greatly. Some states have even banned or limited the practice. But federal law reinforces those state laws in case a gambler gets caught. For instance, the Wire Act prohibits the act of placing bets or contests on sporting events. A player must also be aware that if he uses an interstate facility to engage in such an activity, he or she will be subject to the Travel Act, which prohibits the activity.
As far as the UIGEA is concerned, it makes it illegal for Internet operators to accept financial instruments from bettors, which includes bank cards, checkbooks, and other forms of payment. It also provides for appropriate data security standards and age verification. Those in charge of enforcement have expressed their concerns that the Internet could become a conduit for the movement of illegal gambling to the U.S. Despite these concerns, however, the number of illegal Internet bets continues to grow.
Although the federal government has been able to successfully prosecute gambling companies on criminal grounds, the law has been challenged on other constitutional grounds. This includes the due process and Commerce Clause. Since the commercial nature of the gambling industry is a big factor in its success, it is not surprising that it has been a topic of debate.
The Travel Act is particularly important in the context of online gambling. Unlike offline gambling, Internet bettors can enjoy the ability to bet on sporting events and contests across state lines. Because the internet is a global medium, the government can’t assume that a player is engaging in online gambling within the United States. Even though the travel act applies to players who use interstate facilities for unlawful activities, a player can still be fined for conducting an unauthorized Internet bet.
In addition to the Travel Act, the federal government has several other statutes that can be used to punish a gambler. These include the Racketeer Influenced and Corrupt Organizations (RICO) provisions. RICO entitles the federal government to recoup damages from gambling business activities that are conducted in violation of the United States or its citizens.
Another statute, the Casino Control Act, was enacted to regulate the gaming industry. Besides regulating the operation of casinos, it also includes prohibitions against the use of casinos as an instrument to launder funds or conceal illicit activity.
One of the first major casinos to operate on the internet was the Liechtenstein International Lottery. Initially, the casino operated only for the locals, but it slowly began to offer Internet access to the general public. Eventually, it offered mobile versions of its site as well. Typically, a user’s deposit is deducted from his or her account. Similarly, a gambler can choose to play games that are available through instant play, which allows the player to play without having to download or install any software.