The Federal Government’s Implications on Online Gambling

Online Gambling

There are a number of types of gambling, including casinos, sports betting and online poker. These games can be played in the comfort of your home, or from your mobile device. The internet has made these games much easier to participate in. However, these activities can also pose problems.

Gambling is an activity primarily governed by state law. While the United States government has issued proscriptions against certain forms of gambling, it is up to individual states to determine whether or not a particular form of gambling is legal in their jurisdictions.

The most recent cases of internet gambling involve a criminal charge against an Internet poker operator, and a public service campaign against illegal online sports betting. Both involve violations of the Unlawful Internet Gambling Enforcement Act (UIGEA).

UIGEA prohibits individuals and businesses from accepting financial instruments from illegal Internet bets. This law is largely applicable to commercial activity, but also reinforces state laws in some instances.

Several federal statutes are implicated by Internet gambling. Among them are the following:

Under the Travel Act, Internet casinos are subject to the same laws as other interstate facilities. Players can also be prosecuted if they engage in illegal activities by using interstate facilities.

Additionally, some state officials have expressed concerns that the internet may bring illegal gambling into their own jurisdictions. In addition, these state laws often impose a higher fine or prison term on those convicted of illegal gambling.

The federal Commerce Clause has also been the target of attacks. Some have argued that regulating activities occurring in part overseas conflicts with the First Amendment. Other have cited the due process clause. But these arguments have not produced a great deal of success.