Online gambling refers to placing bets, using a computer to gamble, and utilizing an internet connection for these activities. It also includes virtual poker.
Internet-based gambling has a strong appeal to some. It’s easy, cheap, and offers entertainment at any time. However, it also poses dangers to users. For example, it could lead to large losses and addiction. In addition, it has become a medium for illegal activity, including money laundering and promoting illegal activities.
The United States Department of Justice has taken steps to enforce the federal laws that prohibit Internet gambling. For instance, the Attorney General has prohibited financial instruments used to make illegal Internet bets.
Another federal law is the Wire Act. The Wire Act is a federal law that regulates telecommunications services. In some circumstances, the Wire Act can be interpreted to apply to the whole telecommunications infrastructure. This can cause problems for state enforcement policies.
A new federal law called the Internet Gambling Regulation and Tax Enforcement Act (IGRTEA) would regulate and tax Internet gambling businesses. The Federal Communications Commission (FCC) has a role in approving and maintaining telecommunications facilities. The FCC can also stop providing these facilities.
Some casinos operate without proper licenses or regulatory supervision. This has long been a red flag for regulators. The lack of regulation has given operators the ability to take advantage of customers.
Some states are concerned about the impact of Internet-based gambling on their jurisdictions. They are concerned that it will expand gambling activities, allowing gambling directly into homes. Some state officials are also hesitant to enforce online gambling regulations because of conflict with the dormant Commerce Clause doctrine.