Is Online Gambling Illegal ?
A. STATE LAWS Up until the last few years, the regulation of gambling had been relegated to state legislatures. Predictably, states have varied in their degree of regulation. Utah, a universally renowned conservative state, does not permit its citizens to participate in any form of gambling. On the other hand, Nevada openly declares in their statutory law that gambling is "vitally important to the economy of the state and the general welfare of the inhabitants." All states have legalized at least one form of gambling (usually a lottery). B. FEDERAL LAWS Congress decided to institute their own regulations upon gambling because of the inconsistencies in states legislation and enforcement. To prevent a wide variation between neighboring states, Congress resolved to exercise their power to control interstate commerce. The majority of federal statutes were passed before the introduction of online wagering, however.
1. Should Internet gambling be banned or legalized+regulated? The
chief issue, in my opinion, is the FRAUD online gambling is prone to.
I studied the phenomenon as scientifically as I possibly could. I
came to the conclusion that the software running online casinos can
be easily rigged. The fraud is very easy to implement directly in the
source code of the software. Very few users are aware of that
"feature".
2. On the other hand, banning Internet gambling is also costly. In
order to enforce the law, again, an agency such as FBI would have to
increase its budget dramatically.
3. Ideally, Internet gambling should be legalized and strictly
regulated, at low costs. Let's see if the government of Australia
will be able to achieve such difficult goals.
Online gambling can be very lucrative as long as you know the rules and stay informed. We have created this website (www.online-gambling-rules.org) for people just like you to get all of the information needed to gamble in a safe and profitable environment.
The first question raised by most gambling advocates is: why regulate at all? A variety of reasons are usually provided. First, many people are uneasy with the morality of gambling. Specifically, Internet gambling provides access to children who are not legally allowed to gamble. "Because children have potentially unlimited access to computers and the Internet, it is possible that without proper monitoring they will access gambling Web sites as readily as they could access indecent materials." The nature of the Internet is that, many times, it is impossible for a site’s webmaster to know the age of the person visiting their site. Therefore, advocates of regulation feel that the only way to prevent children from accessing gambling sites is to make these sites illegal for everyone. Regulation advocates also point to addiction as a reason to restrict Internet gambling. Several factors lead to an increased likelihood of addiction. The bets are made with ease in an arcade type of atmosphere. "Within minutes of making a deposit with a credit card, a user can be playing virtual versions of a variety of casino games, including blackjack, roulette, video poker and craps, or betting on almost any sporting event." Virtual casinos and their video game structure have been labeled the "crack cocaine of gambling." Although not scientifically proven, this type of site seems to correlate with more visits to the site and an increased amount of time spent at the site during each visit. Addiction is also more easily attained with Internet gambling because of the location of the activity. Before the proliferation of online gambling, an individual had to visit actual casinos or bookmakers in order to make wagers. The locale of the bet limited the number of wagers, to a degree, because of the limited hours of operation and cash requirements (with illegal bookmakers). However, with online operations, the facilities are open twenty-four hours a day, seven days a week. Further, online gamblers are able to obtain money in their account almost instantly with the use of a credit card. "Addicts [can] literally click their mouse and bet the house." Excessive gambling is also more frequent when the player is anonymous. Surely, a player who has lost a tremendous amount of money is more likely to succumb to embarrassment at a card table with others watching than while sitting at home alone at his computer. This addiction is considered a serious problem by many morality advocates, who feel that making gambling more convenient can do nothing but make the problem worse. According to Tom Grey, director of the National Coalition Against Legalized Gambling (NCALG), gambling "as a form of entertainment, [is] a disease to five percent of the population that will entertain themselves into bankruptcy. So obviously, [with] entry into a home . . . the more available and accessible you make gambling, the more you compound the problem." Another reason promulgated by advocates of regulation is fraud. Currently, Internet gambling is not regulated like other forms of legal gambling (lottery, Las Vegas casinos). "This lack of regulation means that Internet gamblers do not know whether the games they are playing are legitimate and cannot be assured a payout if they do win online." Without regulation and inspection, players have no way of knowing whether the site in which they send their credit card information pays any of its winners or uses honest machinery. Further, some states choose to forbid gambling on credit or by drunks or minors. These types of restrictions are impossible without a system of regulation for online casino operators. Although some foreign countries have begun to regulate online casinos that have arisen within their borders, there is still the possibility that winners (and losers) could be defrauded.
A. INTERNET GAMBLING PROHIBITION ACT This bill has been commonly referred to as the Kyl Bill because of its initial proposal from Senator Jon Kyl (R-AZ). His basic purpose was to create an updated version of the Wire Wager Act so that Internet gambling would be unmistakably addressed. Initially, the IGPA added "section 1085 to the U.S. Code making it unlawful for a person to place, receive, or otherwise make a bet, or for parties engaged in the business of betting or wagering to do so via the Internet or a non-closed circuit interactive computer service in any state." This language was significant because it targeted individual bettors. As stated above, the Justice Department questioned the wisdom of this inclusion. The comprehensiveness of this bill was questioned immediately. As one observer noted, "e-mail your picks to the office football pool, and under Kyl’s bill you would face a $2,500 fine and six months in jail. Phone in your picks and you would remain free." B. BROWNBACK / LEAHY BILL The National Collegiate Athletics Association (NCAA) has advocated a bill that would make it illegal to place bets on any amateur or collegiate athletic contest. The bill, sponsored by Senators Sam Brownback (R-Kansas) and Patrick Leahy (D-Vermont), would supplement the Professional and Amateur Sports Protection Act by eliminating exceptions (relating to wagers on amateur sports) for states already allowing gambling in this form and punishing the individual gambler. This bill, if passed, would lead to the enforcement and Commerce Clause issues described above. C. STATE ENFORCEMENT In order to avoid federalism concerns, some analysts have proposed a state enforcement mechanism. There are two main objections to this type of system. First, it is argued that enforcement in states making online gambling illegal would be impossible. However, this problem is present even when the practice is illegal nationwide. International bookmakers already avoid U.S. laws. By allowing states to make their own laws in this area, online gambling site operators could be regulated (reducing fraud) and tax revenue could be increased. The second reason that state regulation has been criticized is violating the Dormant Commerce Clause. This issue is discussed above. Internet gambling clearly raises a variety of legal issues. Inevitably, the moral associations with this activity will lead to federal regulations. The effectiveness in enforcing these regulations, however, is burdensome. Because the operators of online gambling sites can easily locate themselves outside the extradition power of the U.S., enforcement will eventually focus on the individual bettor or internet service provider.
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