Online gambling is the act of placing bets on the internet. It includes casinos, virtual poker, sports betting, and lotteries. This industry is regulated by state law and the federal government.
The Unlawful Internet Gambling Enforcement Act (UIGEA) defines unlawful Internet gambling as using at least part of the Internet for the purpose of receiving, receiving bets, or transmitting bets. Additionally, the Act prohibits the acceptance of financial instruments from an illegal Internet bet. However, there are a few exceptions.
First Amendment arguments have been used in some cases. However, these have not been successful. Some have argued that the UIGEA violates the Commerce Clause of the United States Constitution, while others argue that the statute encumbers free speech objections.
There are also questions about the authority of the legislature to regulate activities occurring in part abroad. These concerns have been raised by due process advocates.
Another issue is whether the Travel Act applies to players using an Internet casino. That issue is not addressed in this article, but it has been addressed in the Loyola of Los Angeles Entertainment Law Journal.
State officials have expressed concerns that the Internet could be used to transport illegal gambling into their jurisdictions. Several federal criminal statutes have been implicated in this case.
A few of the crimes cited in the UIGEA include money laundering, concealing an intention to commit an illicit activity, and laundering for international purposes or to evade taxes. The Act also provides appropriate data security standards.