Everybody wants to know Is Online Gambling Legal in the United States?
Professor I. Nelson Rose, a leading authority on gambling law states: “No United States federal statute or regulation explicitly prohibits Internet gambling, either domestically or abroad.” Still, the US government insists that certain things are illegal and worthy of prosecution. The most often cited statute used to defend gambling as a federal offense is the Wire Act, which was enacted some 40 years ago. The operative sub-section reads: “Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.”
Gambling is legal under US federal law, and each state is free to regulate or prohibit it.
Allegedly, the Federal Wire Act of 1961 bans Internet sports gambling across state lines (with some exceptions now for off-track horse race betting) but does not address any other form of gambling (online casinos, online poker, and online bingo).
The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) did not specifically prohibit online gambling; instead, it tried to outlaw financial transactions that are involved with online gambling. Some offshore gambling providers reacted to the UIGEA by not offering their services for US customers.
Part of the problem is that each state is different when it comes to specific laws against online gambling of any kind. Owning an online gambling operation without proper licensing is considered illegal, and none of the states are currently granting online gaming licenses. For this reason most of the online gambling sites keep their businesses and servers outside the United States to avoid risk of prosecution. These online gambling sites are usually licensed in the country in which they are located.
Disclaimer – GamblingUSA.com is not a legal authority and does not claim to be. In no way should the information presented here be regarded as formal legal advice. The information on this page has been taken from different news releases and articles. Please consult the specific laws of the area in which you reside.
