Online gambling has become a very lucrative industry. This market is expected to grow by 11% per year. However, there are a few legal issues to keep in mind.
There are many state laws that regulate online gambling. Some states allow casinos while others allow poker. In addition to these laws, there are federal criminal statutes that may affect gambling online.
The Internet Gambling Prohibition Act was introduced in the US Senate in 1999. As a result, some online gambling operators have been charged with money laundering, though they have been able to settle the case.
Another important legal issue is the Travel Act, which covers illegal gambling across state lines. If a player uses an interstate facility to participate in illegal activities, such as gambling, the law will compel the operator to take measures to prevent the user from reentering the country.
For these reasons, it is important that casinos, sports books, and other gambling facilities perform in-depth checks on their operations. These checks will help to weed out potential fraud and money laundering efforts. Additionally, there are a number of best practices to follow.
One of these is implementing an Anti-Money Laundering (AML) program to protect against the risk of fraud and account takeover attacks. AML helps to reduce the risk of problem gambling by screening customers for self-exclusion lists.
Another must-do is performing regular external audits to identify any potential compliance issues. In addition, it is also a good idea to implement a KYC (Know Your Customer) program to identify users and determine the source of funds.