Online Gambling

In a nutshell, unlawful Internet gambling means placing bets and transmitting bets online. The Wire Act, however, prohibits such activities. The United States Department of Justice (DOJ) has issued a number of criminal statutes relating to illegal Internet gambling. The three most common are the Gambling Devices Transportation Act, the Federal Wire Act, and the Unlawful Internet Gambling Enforcement Act.

Several statutes have been cited in a variety of cases. However, only a few have become law in their respective states.

One statute, for example, has been the subject of multiple legal challenges on both the federal and state levels. The Gambling Devices Transportation Act (also known as the Johnson Act) was first passed in 1972. It requires that gambling businesses register with their states and pay a franchise tax. The law carries with it the potential for fines and imprisonment.

A similar statute, the Unlawful Internet Gambling Enforcement Act (UIGEA), was enacted in 2006 and imposes stiff penalties on those who operate illegal Internet gambling businesses. The statute specifically bars those who provide financial instruments for illegal Internet bets.

Another statute, the Travel Act, prohibits interstate commerce in gambling. This statute has been the focus of many debates, as it is unclear whether it is constitutional to regulate interstate commerce in gambling.

The most interesting aspect of the UIGEA is its potential impact on the state of Illinois. Although the state has yet to pass legislation, the UIGEA will likely make it more difficult for the DOJ to prosecute Internet gaming operators.