Legal Issues Regarding Online Gambling

Online Gambling

Online Gambling has become a popular activity among people from all over the world. Millions of people sign in to their computers, tablets and smartphones every day to play different games.

Unlike traditional gambling, which uses physical machines, most Online Gambling sites offer advanced software that allows users to place bets on various games. This is a crucial component of these sites, and it’s important to know how to use it correctly.

Legal Issues

In the United States, there is no federal law that prohibits the practice of online gambling. However, there are several state laws that make it illegal to gamble online in any form.

Section 1956 of the United States Criminal Code makes it a crime to “place, receive or otherwise knowingly transmit” a bet or wager by means of the Internet. The statute also criminalizes money laundering.

Constitutional concerns initially greeted the prospect of prosecuting illegal Internet gambling, including whether Congress has the authority to regulate such activities under its Commerce Clause powers, and whether it violates the First Amendment’s guarantee of free speech.

The most significant change in the law came in 2010 with President Barack Obama’s signing of the Unlawful Internet Gambling Enforcement Act (UIGEA). This act made it illegal for businesses to transfer funds to and from online gambling companies. UIGEA was a major blow for the industry, as it forced many US-based companies to close their doors. Fortunately, many online casinos have since re-opened and a number of states have recently passed legislation to allow them.