Many countries restrict or prohibit online gambling. These include most European Union nations. However, some Canadian provinces allow gambling. Gambling is generally illegal in the United Kingdom without a license. Online gambling is legal in several nations in the Caribbean Sea. In India, the “Bombay Wager Act” is a law that prohibits online betting.
The United States has passed laws to prohibit illegal gambling. These include the Wire Act, which prohibits illegal gambling on sporting events. Additionally, the Illegal Gambling Business Act makes it illegal to operate an Internet gambling business.
A federal criminal case against the owners of three of the largest Internet poker sites has been filed. It is alleged that these companies are laundering money. Some of the other statutes implicated by these illegal online gambling operations are the Federal Wire Act, the Unlawful Internet Gambling Enforcement Act, and Racketeer Influenced and Corrupt Organizations (RICO) provisions.
There have been several attacks on the federal government’s ability to regulate gambling. While attacks based on the Commerce Clause have failed to achieve much success, other arguments have been made that the government does not have enough legislative power to enforce gambling laws.
One of the biggest challenges for the newly regulated online gambling industry has been payment. Despite the fact that most regulated sites accept online bank transfers, not all banks support these transactions. New Jersey leads the pack of regulated markets with an array of real money payment options.