Illegal internet gambling is a violation of seven federal criminal statutes. These statutes include the Wire Act, the UIGEA, the Illegal Gambling Business Act, the Racketeer Influenced and Corrupt Organizations (RICO) statutes, and the Interstate Commerce Act. However, in addition to these federal statutes, states have enacted their own laws. Specifically, the state of New York deems the act of transmitting information from New York via the Internet to constitute gambling activity. In some cases, the State of Florida considers the act of entering a bet to be gambling activity.
A number of state officials have expressed concern that internet gambling could be used to bring illegal gambling into their jurisdictions. Several factors, including the commercial nature of the gambling business, the foreign elements involved, and the possibility that the activities may be regulated in part overseas, have raised questions about the ability of state enforcement policies to enforce their own laws.
The United States Department of Justice recently brought charges against K23 Group Financial Services, an Internet poker operator, for a series of violations of the UIGEA. These violations included money laundering, concealing, and evading taxes. The criminal charges were related to a scheme in which the defendants attempted to avoid a $600,000 tax liability on gross revenues of about $2,000.
Although the case was dismissed, it remains a source of controversy for the Federal Communications Commission. The commission has the power to stop maintaining or leasing facilities that facilitate illegal gambling. This could prevent Internet casinos from functioning. Similarly, it might also prohibit the furnishing of such facilities.
Despite these statutory and regulatory concerns, there have been several constitutional arguments against the enforcement of federal laws prohibiting online gambling. Some have focused on the First Amendment, which guarantees free speech. Other attacks have focused on the Constitutional Due Process Clause. However, these attempts have been largely ineffective.
In addition to the criminal statutes, there are a number of other federal statutes implicated by unlawful Internet gambling. These statutes include the Wire Act, which bans the participation in illegal betting on sporting events, the Illegal Gambling Business Act, which prohibits the operation of an illegal gambling business, and the Racketeer Influenced And Corrupt Organizations (RICO) statutes, which ban the activities of companies whose members are engaged in illegal gambling.
Online gambling is becoming more popular with technological advancements. There are now several types of casino games available, including traditional titles such as slots and video poker, and newer games with live dealers. It is important to ensure that you select a reputable casino that is regulated by the MGA or UKGC. Also, ensure that you are well informed on any bonuses you receive. If you are unsure of how to avoid problems with gambling, talk to a friend who may be more experienced in the area.
In light of the increasing popularity of online gambling, the government has stepped up its efforts to regulate the industry. A report titled “Internet Gambling: Overview of Issues” was published by the Government Accountability Office (GAO) in 2002.