Legal Issues Related to Online Gambling
Online gambling has been around for many years. Gambling can be found in casinos, pools, lotteries and sports betting. But there are many issues surrounding this activity.
A recent example of a case involving online gambling is United States v. K23 Group Financial Services, a criminal case in which the government charges several Internet poker operators with money laundering.
The UIGEA (Unlawful Internet Gambling Enforcement Act) is a federal statute that regulates commercial activity in the internet gambling industry. It contains factors to weed out low-level gambling cases, but it also focuses on preventing financial transactions that are made in the United States.
Various states have their own laws that cover online gambling. The states of Nagaland, Sikkim and Orissa have included provisions for gambling in their respective laws.
Some of the most prominent legal challenges to the existence of online gambling have centered on the Commerce Clause. However, these arguments have been met with limited success.
Several federal criminal statutes also affect the illegal use of the internet for gambling. These include the Wire Act, the Travel Act, the Interstate Commerce Clause and the Illegal Gambling Business Act.
In addition, the Public Gambling Act, 1867 does not specifically mention online gambling. However, the Act prohibits betting on the outcome of a contest of chance.
Another federal law that has been used in connection with Internet gambling is the Free Trade and Processing Act. This law provides licensing to Internet gambling companies.