Federal Laws That Apply to Online Gambling

Whether you’re a beginner or a seasoned bettor, there are a number of advantages to using online gambling sites. The most obvious benefit is the chance to win real money online. However, the industry is also plagued with deceivers and scams. You should be aware of the potential for financial ruin. Despite the benefits of using online gambling, you should be responsible and be cautious.

There are several federal criminal statutes that relate to illegal gambling on the internet. The Wire Act is one of these. It prohibits illegal gambling on sporting events. In addition, there are Racketeer Influenced and Corrupt Organizations (RICO) provisions that make it illegal to engage in an illegal gambling business.

The Travel Act is another law that prohibits illegal gambling on interstate commerce. This law is often used to challenge attacks on the law based on the Commerce Clause. The fact that the statutory language is broad and vague has not proven to be as effective as the Due Process Clause.

The first online gaming venue for the general public was the Liechtenstein International Lottery. It was a successful operation thanks to the presence of PokerStars.

In addition to the Travel Act, there are four other federal criminal statutes that relate to illegal Internet gambling. The Illegal Gambling Business Act and the Wire Act are two of them. The latter was passed in 1961 before the advent of the Internet.

The aforementioned laws have been challenged on constitutional grounds, but have been met with little success. In the case of the aforementioned laws, the due process arguments have not been able to stand up to the fact that the laws are enforced by the Federal Government.