Federal Enforcement of Online Gambling Laws
Currently, there are no laws in the United States that criminalize gambling on the internet. However, there are still many state laws that ban gambling, and the federal government has the authority to enforce these laws. In addition, state officials have expressed concerns that the internet might be used to bring illegal gambling into their jurisdictions.
The Internet Gambling Prohibition Act was introduced in the US Senate in 1999. It would have prohibited the online gambling of U.S. citizens, but it would have failed to address the issue of gambling by foreign entities.
In 2002, the Government Accountability Office released a report, Internet Gambling: Overview of Issues. This report provides an overview of the issues involved with online gambling, and cites state laws.
One of the issues raised by this report is the constitutionality of a statute that prohibits accepting financial instruments from illegal Internet bets. Critics of this move claim that there is no legal basis for such a prohibition.
The Department of Justice has also announced that it will enforce the Wire Act, which prohibits the transfer of information through the Internet. This includes the transmission of bets and other forms of gambling.
The Department of Justice also announced that it would prosecute PayPal, a financial transaction provider, for violating the Unlawful Internet Gambling Enforcement Act (UIGEA). PayPal had received notice from the federal prosecutors that it could face prosecution.
The US Department of Justice also issued an opinion stating that it would enforce the Wire Act, which would cover all forms of Internet gambling. This includes sports betting, horse racing betting, and virtual poker.