Having an understanding of the legality of online gambling can help you decide where to begin your business. It can also assist you in developing safe products and managing your business.
The United States has six states that permit online gambling. In addition, several other European countries have regulated gambling. These laws are different in each country. Some of the regulations are stricter than others.
There are seven federal criminal statutes that are implicated by illegal Internet gambling. These include the Wire Act, the Unlawful Internet Gambling Enforcement Act, and the Illegal Gambling Business Act. The United States also has the Racketeer Influenced and Corrupt Organizations (RICO) provision that prohibits businesses engaged in illegal gambling.
In December 2002, the General Accounting Office released a report titled Internet Gambling: Overview of Issues. The report includes citations to state and federal gambling laws. It also includes a section on the Commerce Clause, which is a question of legislative power. The report is available in abridged form.
The Commerce Clause has been the subject of numerous attacks, although those have been unsuccessful. Some argue that the commercial nature of a gambling business can satisfy Commerce Clause concerns. Other arguments have focused on free speech protections.
Section 1956 creates several distinct crimes. It defines laundering for international purposes, laundering to disguise, and laundering to promote illicit activity. It also creates laundering to evade taxes.
The Lopez Amendment, which regulates commercial activities, is also involved. It contains elements to help weed out low-level gambling cases.