Online Gambling Laws

Online Gambling

Whether you play for free or for real money, the Internet has a wide variety of online gambling opportunities. In addition to casinos, you can try your hand at virtual poker, bingo, or sports betting. Online casinos also offer lucrative bonuses to new players, making it worth your while to check out a few sites.

A variety of laws govern the online gambling industry. These include the Wire Act, which forbids illegal gambling on sporting events; the Travel Act, which prohibits players from using interstate facilities for unlawful activities; and the Illegal Gambling Business Act, which penalizes the owners of an illegal gambling business. UIGEA is an additional law enacted to regulate commercial activity on the Internet.

The UIGEA prohibits financial institutions from accepting financial instruments from illegal Internet bets. This includes PayPal. However, there is some disagreement as to whether or not the UIGEA can be enforced.

While there have been attacks based on the Commerce Clause, they have been ineffective. There are also questions as to whether the federal government has the authority to prevent a lawful, commercial business from operating.

One of the arguments made against the UIGEA is that it violates the Due Process Clause. While this is an argument that could be made for other kinds of legal actions, it does not apply to a gambling business.

On the other hand, the commercial nature of the gambling business seems to satisfy the doubts about whether or not the Commerce Clause exists. Some state officials have expressed concerns that the Internet might be used to transport illegal gambling into their jurisdictions.