Online gambling has become an important industry in the United States. The business of online gambling includes sports betting, virtual poker, and casinos. It also encompasses gaming, such as lotteries and pool-selling. Some states and countries regulate online gambling.
New Jersey has led the pack with a number of regulated markets. They include horse racing betting markets. Several forms of Internet gambling are legal in the European Union, some Caribbean nations, and some Canadian provinces. However, most countries do not allow online gambling.
A few other countries, such as France, have proposed new laws to tax Internet gambling. Some state officials have voiced concerns about the ability of the internet to bring illegal gambling into their jurisdiction. In response, several US Congressmen have introduced legislation to modify the UIGEA.
Currently, there are two types of federal criminal statutes that can be implicated by illegal gambling on the Internet. First, there are the Wire Act.
Second, there is the Federal Information Technology Rules. These rules address both the operation of Internet gambling and the acceptance of financial instruments in connection with an illegal online bet.
While the Commerce Clause is often invoked to challenge federal regulations on gambling, this has proven to be a less effective method of attack. Additionally, questions have been raised about the power of the legislature to regulate activities that occur in part overseas.
Although state laws regulate gambling, there are many arguments over the ability of the federal government to prosecute or fine individuals who violate those laws. Some of these arguments are based on the Due Process Clause and the First Amendment guarantee of free speech.