Laws and Regulations Regarding Online Gambling

Online Gambling

Gambling is a broad term referring to games of chance and skill wherein players place bets on a sporting event or game. Some examples include casinos, sports betting, online poker, virtual poker, and lotteries.

Several states have enacted laws and regulations to protect residents from the illegal use of online gambling. For example, the State of New Jersey has legalized and regulated online sports betting, and many other states have followed suit. However, some countries and provinces, including the United States, prohibit or restrict such activities.

In the United States, Internet gambling is governed by the Wire Act. This law states that if someone transmits information from New York to another state, it is considered gambling activity in New York. It applies to all forms of Internet gambling. The Federal Information Technology Rules also address this topic.

Another issue that has sparked concerns about gambling is the Due Process Clause of the Constitution. While it is clear that Congress has the power to pass laws to regulate conduct, the question of whether it is valid to regulate conduct that takes place in part overseas has raised issues.

Other legal considerations include the Commerce Clause. Though it is unclear how it can be applied, the commercial nature of the gambling business seems to satisfy the Commerce Clause.

Finally, the Travel Act applies to players who engage in unlawful activities on interstate facilities. Similarly, the Lopez Amendment, a Congressional drafting effort, includes elements to weed out low level gambling cases.