The Legality of Online Gambling

Online Gambling

Several nations in the Caribbean Sea and some provinces in Canada allow online gambling. These include casinos, sports betting and virtual poker. However, it is illegal in the United States under the Wire Act, which prohibits gambling on contests and sporting events.

Although the Internet has revolutionized online gambling, the legalities of the phenomenon have been debated for years. There have been several bills introduced in the House and Senate that attempt to regulate and tax online gambling. These include the Internet Gambling Regulation, Consumer Protection and Enforcement Act, or HR 2046, and the Unlawful Internet Gambling Enforcement Act, or UIGEA.

Although the federal government is generally reluctant to get involved in criminal cases involving illegal gambling on the Internet, it has taken steps to ensure that such activities are not permitted to continue. The United States Department of Justice has recently announced that the Wire Act applies to all forms of Internet gambling, and that it will prohibit the taking of financial instruments from illegal Internet bets.

A recent survey conducted by Frost & Sullivan revealed that online gambling revenues in the United States exceeded $830 million in 1998. The survey also revealed that more than 200 gambling websites were operating in the country in 1997.

In addition to UIGEA, several other federal criminal statutes implicate illegal gambling on the Internet. The Federal Information Technology Rules address the issue of Internet gambling, and a number of state enforcement agencies have expressed concerns that the Internet could be used to facilitate illegal gambling activities.