Online gambling is a term that refers to activities conducted on an Internet-based platform. This includes virtual poker, sports betting, casinos, and lotteries. These types of activities are illegal in some countries, and they are legal in others. In some countries, the laws on online gambling are different than the laws that govern land-based gambling. For example, many countries allow gamblers to be as old as 19 while other countries limit the minimum age to 18.
The United States defines unlawful internet gambling as “using a computer or an internet connection to place or receive bets on games of chance,” even if the game is played for enjoyment. That definition is included in 31 U.S.C. 5362(10). Moreover, the statute is limited to the Internet and not includes other technologies, such as telephones or televisions. It also excludes financial transaction providers, such as PayPal and other e-commerce services, and facilities used to conduct wagering.
While state laws govern most online gambling, a number of federal criminal statutes are implicated by the unlawful activity. A few of these laws include the Travel Act, which covers players who engage in unapproved gambling while using interstate facilities; and the Gambling Devices Transportation Act, or the Johnson Act, which prohibits the transportation of wagering devices.
Another law involving the use of the Internet to commit gambling is the Unlawful Internet Gambling Enforcement Act (UIGEA). UIGEA is a statute that punishes those who provide financial instruments to illegal Internet bettors. If the United States prosecutes a person for accepting a payment on an illegal Internet bet, they may face up to five years in prison. Other crimes associated with UIGEA include laundering, which is defined as the concealment of a bet, or a bet to promote illicit activity.
There are a number of challenges to the enforcement of the laws on illegal Internet gambling. Many of these have been based on constitutional grounds. One challenge involves the Commerce Clause, which states that Congress has the authority to regulate interstate commerce. Some of these attacks have failed.
Another constitutional objection raised is the free speech guarantee under the First Amendment. Although there is little support for such a challenge, some questions have been raised about the power of the Congress to regulate gambling activities that occur in part overseas. However, this question is not particularly demanding.
State officials have also expressed concerns that the Internet could be used to bring illegal gambling into their jurisdictions. In response, the United States and other countries have passed laws that prevent the transfer of bets between states. Similarly, the Federal Communications Commission has the authority to stop the furnishing of facilities and the leasing of facilities.
Despite these objections, the commercial nature of the gambling industry seems to satisfy the Commerce Clause. Further, many of these objections can be dismissed on due process grounds. But the argument is weakened when the transactions take place in the United States.