Online Gambling Regulations

Online Gambling or e-gambling is the act of placing bets or wagers on sports or other events via the Internet. It may be done for fun or for a profit. There are many types of online gambling, including casinos, virtual poker, and sports betting.

The United States has several federal criminal statutes that govern illegal internet gambling. One is the Unlawful Internet Gambling Enforcement Act (UIGEA). Another is the Travel Act.

Several states have introduced legislation regulating online gambling. For example, New York State has passed a law that requires all bets placed on the internet to be approved by the state. And, a few states have enacted the Public Gambling Act, 1867.

These laws include age verification, location verification, and proper data security standards. Additionally, federal statutes governing financial transactions in the U.S. and telecommunications services may also affect Internet gaming operations.

Some of the aforementioned statutes are complemented by other federal and state laws. In a case involving the Internet poker operator K23 Group Financial Services, the federal government charges the operators with violating 18 U.S.C. 1955.

Another notable aspect of the UIGEA is the prohibition on accepting financial instruments from illegal Internet bets. This includes credit cards, electronic payment systems, and other forms of financial transaction providers.

However, due process concerns have been raised about the regulation of activities conducted overseas. Likewise, questions about the power of Congress to regulate the commerce of the state have been raised.