Online gambling involves using the Internet to engage in gambling or placing bets. It includes casino gaming, sports betting, and virtual poker. However, in some countries, it is not legal.
The law governing online gambling primarily lies in state law. State officials have expressed concerns that the Internet can be used to bring illegal gambling into their jurisdictions. In addition, many foreign elements can complicate state enforcement policies.
There are a number of federal criminal statutes implicated by illegal Internet gambling. These include the Federal Wire Act, the Interstate Commerce Clause, and the Unlawful Internet Gambling Enforcement Act (UIGEA).
Section 1956 of the Unlawful Internet Gambling Enforcement Act creates several distinct crimes. For example, it creates laundering to conceal or disguise, to evade taxes, and to promote illicit activity. Additionally, it allows the Attorney General to prohibit the acceptance of financial instruments from Internet bets.
Several cases have been brought to court challenging the enforcement of federal gambling laws. Many of these cases have been based on constitutional objections. Some have raised questions about whether the Commerce Clause authorizes the legislature to prohibit the transmission of information from one state to another. Other attacks have been based on the First Amendment’s guarantee of free speech. Those attacks have enjoyed little success.
Another issue has been the question of due process. If a person is playing on an insecure website, that person’s personal and banking information could be at risk. A valid gambling license is required to prove that a site is legitimate.