Is Online Gambling Legal?

Whether you like poker, blackjack, slots or sports betting, the Internet provides an opportunity to engage in the activity from your home. In some cases, the activity is even legal. However, there is still a lot of confusion surrounding the issue.

The federal government has taken a strong stance on gambling, imposing a number of regulations on both the business and individual sides of the equation. These laws include the Illegal Gambling Business Act (IGBA) and the Racketeer Influenced and Corrupt Organizations (RICO) statutes.

The law is meant to prevent illegal gambling from taking place in the United States. It also has provisions for preventing the facilitation of such activities by financial institutions.

There are a number of other federal criminal statutes that have been enacted to combat online gambling. The most comprehensive, and certainly the most significant, is the IGBA.

The aforementioned statute outlines the various ways in which gambling can be deemed illegal, including conducting or facilitating the sale of a lottery, conducting a raffle, making a bet, maintaining or operating a gaming machine, or engaging in other similar activities. This law has been challenged on constitutional grounds, primarily because of the Commerce Clause and the First Amendment. The question remains, if the First Amendment permits gambling, why not?

The aforementioned IGMA and RICO laws may not be as draconian as some state legislatures have wished, but they are far from unenforceable. Owners of illegal gambling businesses can be fined as much as five years in prison.