Online gambling is an activity where a person places a bet on a sporting event or other type of event. This could include soccer betting, blackjack, poker or virtual poker.
The legality of online gambling is a matter of state law. In some states, individuals can play online, but there are restrictions.
Using the internet to conduct illegal gambling is generally a crime. There are several federal criminal statutes involved. Those statutes are the Travel Act, UIGEA, and the Unlawful Internet Gambling Enforcement Act.
The Travel Act applies to players who use interstate facilities for unlawful activities. Several state laws increase the risk of prosecution.
While these laws are primarily enacted at the state level, they also reinforce federal laws. A recent case involves the federal government’s prohibition of accepting financial instruments from illegal Internet bets.
In the case of the Unlawful Internet Gambling Enforcement Act, the government charged K23 Group Financial Services. The company was accused of money laundering and violations of 18 U.S.C. 1955.
In addition to money laundering, the government charged the company with violations of the UIGEA. Its website contained advertisements for an operation called Tropical Paradise.
These websites were designed to ensnare consumers. They had malicious intentions, such as stealing passwords and recording keystrokes. Some of these websites have also been used to lock computers and ransom them.
While this is an extreme case, it does provide an example of how the UIGEA can be misused. Because a website owner has the ability to steal, infect, and destroy computers, it is important to keep these sites private.