Legislation to Regulate Online Gambling
Until recently, online gambling was illegal in most of the United States. However, in 2018, the Supreme Court upheld the legality of sports betting. It is also currently legal in several countries, including Canada and most countries in the European Union. In fact, a Frost & Sullivan report found that in 1998, online gambling revenues reached $830 million. This amount was enough to rival the profits of most brick-and-mortar casinos.
In the late 1990s, there were roughly 200 gambling web sites in existence. Some of the biggest operators were Partypoker, PokerStars, and Full Tilt. Each had their own unique set of features. They included the ability to win money, place bets on sports events, and claim bonuses. The sites also featured a “play for fun” option, which offered a chance to try out games before playing them for real. These games are different than the real money versions, because they offer higher payouts.
During the past few years, however, the Department of Justice has made a series of attempts to regulate online gambling. They have tried to interpret the Wire Act, a law that prohibits the wire transmission of wagers, in a way that would apply to all forms of Internet gambling. They have attempted to ban websites that advertise online gambling. They have even seized assets of companies accused of running illegal online gaming operations. Despite this, there are still no federal laws on the books that govern online gambling in the U.S. Nevertheless, there is legislation pending in the Congress.
One of the most important laws on the books is the Unlawful Internet Gaming Enforcement Act. This act was designed to protect consumers from criminals who were using the Internet to engage in illegal activity. It is a good example of the government’s interest in new developments.
The Department of Justice has attempted to implement this law through a series of settlements with online businesses that have facilitated virtual gambling operations. A company called Internet Financial Services, for example, paid $10 million in a civil agreement to resolve a lawsuit brought against it.
The United States’ Department of Justice is currently investigating the founders of three of the largest online poker operators. They are facing charges of money laundering and bank fraud. These companies are also being investigated by the Internal Revenue Service.
While the Goodlatte and Kyl bills did not pass, they did give the United States Department of Justice the opportunity to regulate online gambling. They did not have the same sweeping powers as the original bill. Nevertheless, the bill had some of the same ideas. It would have limited the types of online gambling activities that could take place, except for horse racing.
The good news is that online gambling remains a regulated industry. The federal government is still hostile to the concept, but it will be willing to fight over any new developments. Whether or not the Department of Justice’s efforts will have the desired effect remains to be seen. In the meantime, gamblers should be aware of the regulations and laws surrounding the activity.