How Online Gambling Is Regulated
Online gambling has been on the rise in the past five years. The advent of the Internet has led to the development of virtual poker, sports betting, casinos, and more. While online gambling has become a more popular form of entertainment, it also carries a great deal of risk. It is important to understand how to recognize a problem, how to get help, and what to do if you or someone you know is in danger of developing an addiction.
For instance, it is illegal to place bets on an athletic event or contest unless the activity is approved by the appropriate authorities. This includes the Wire Act, which prohibits illegal gambling on sporting events. Furthermore, the Illegal Gambling Business Act imposes a number of federal criminal statutes on those who engage in unlawful internet gambling.
Some of these include the Racketeer Influenced and Corrupt Organizations (RICO) provisions, which prohibit any activity in connection with the conduct of a gambling business unless it is approved by the appropriate government authorities. Additionally, the Travel Act and the Wire Act are designed to prohibit gambling activities that take place in interstate commerce. However, these statutes may be ineffective against activities that occur in part outside the United States.
Due process objections have arisen in cases involving the regulation of gambling activities that occur in part overseas. Moreover, a number of state officials have expressed concern that the Internet could bring illegal gambling into their jurisdictions. These concerns have not been able to withstand the challenge of federal law.
One court case that raised concerns about the government’s ability to regulate gambling in the United States was a 5th Circuit decision, United States v. Mick. In this case, the government attempted to impose an injunction against an internet gambling site. But a group of bartenders and managers of an establishment that featured video poker machines were also involved in the prosecution.
Another case was a 10th Circuit case, United States v. O’Brien. In this case, the government charged a group of Internet gambling operators with money laundering. In this case, the company used PayPal to make transactions for its illegal gambling operations.
Other cases involve allegations that online gaming facilities are allowing gambling to take place in the United States. These include the K23 Group Financial Services case, which charges the UIGEA and 18 U.S.C. 1955. As a result, the federal government is seeking to prosecute all of the players involved in the operation of these Internet poker sites.
On the other hand, the Lopez Amendment seeks to reduce the risk of low-level gambling cases. It requires a number of elements to be included in commercial activities, including a review of the impact on interstate commerce. The Congressional findings that the Lopez Amendment provides will help the government to weed out low-level gambling cases.
While these legal issues have made it harder to prosecute online gambling, they have also helped to reinforce state law. Although, state officials have expressed their concerns about the Internet bringing illegal gambling into their jurisdictions, the federal government has made it clear that it will enforce federal law when it comes to such activities.
