Despite its popularity, online gambling is still illegal in many parts of the United States. In addition to state and federal laws, many other countries also have restrictions on online gambling.
In the United States, gambling is primarily regulated by state laws. While most states have the power to regulate gambling, they also have the power to ban it entirely. In some cases, such as California and New Jersey, gambling is legal only on the state’s licensed sites.
Nevertheless, there are federal laws that are enforced by federal officials. In some cases, state officials have expressed concern that online gambling could move illegal gambling into their jurisdictions. These concerns have led to legal challenges of federal gambling laws.
The Federal Communications Commission has jurisdiction over common carriers and is responsible for determining whether a particular service is “interstate.” The Federal Information Technology Rules, for example, address online gambling. If a particular service is found to be in violation, the FCC may discontinue the service, block the service, or impose penalties.
The Federal Information Technology Rules also address other legal issues associated with online gambling. These include the use of certain data security standards, age verification, and location verification. The law requires that Internet service providers obtain a license before they can advertise.
The United States Department of Justice has also taken a proactive approach to online gambling. In December 2002, the department released a report titled Internet Gambling: An Overview of Issues.