The Internet has become a popular source for gambling. There are many forms of internet gambling, including casinos, sports betting, virtual poker, and lottery games. All of these forms of gambling are regulated by the state, however. Despite this, a number of federal criminal statutes have been implicated in cases of illegal internet gambling.
Several states have attempted to regulate online gambling. New Jersey, for example, has a Division of Gaming Enforcement that oversees internet wagering in the Garden State. Additionally, the Keystone State’s Pennsylvania Gaming Control Board regulates online wagering there. In fact, New Jersey became the first state to permit an online casino in the US in 2013.
Other states are concerned about the possibility of online gambling bringing illegal gambling into their jurisdictions. Among those states are Idaho and Wisconsin. This has led to legislative efforts in these areas, such as the Lawful Internet Gaming Act and the West Virginia Lottery Interactive Wagering Act. It also has led to a number of Congressional proposals that would clarify the regulations related to online gambling.
A major issue affecting the debate about regulating internet gambling is the Commerce Clause. While this concept theorizes that federal power resides in the United States, the fact that gambling is a commercial activity has raised questions regarding the legitimacy of the Commerce Clause. Moreover, a limited amount of First Amendment protection for crime facilitating speech may limit the government’s ability to regulate this kind of activity.
Another issue relating to the Commerce Clause is the Dormant Commerce Clause doctrine, which states that the government is incapable of enforcing laws that exist outside the confines of the states. As such, states have not been particularly active in enforcing online gambling laws. However, the federal Wire Act and the Travel Act have both been implicated in cases of unlawful internet gambling.
These federal criminal statutes can be classified as preemption laws. Under these laws, the government is able to override state law, which can be problematic when a state wants to regulate gambling. For instance, if a gambling business were to establish itself in an offshore jurisdiction, the federal government could prohibit the company from conducting business in the U.S. Some states, such as Minnesota, have passed laws that prevent people from establishing an online gambling business in the state.
Other issues that have been raised in the debate over regulating internet gambling include the ability of the state to regulate gambling on Indian reservations. Federal law has prohibited state governments from regulating the activity of gaming on Native American reservations. Since this is the case, the federal Indian Gaming Regulatory Act regulates the activity of gambling on Indian reservations.
The United States Supreme Court overturned the Professional and Amateur Sports Protection Act of 1992 in 2018. This meant that the government’s ban on sports betting had been reversed. Furthermore, twenty states allow residents to bet on sporting events and contests by means of computerized wagering systems. But some states have not allowed this type of wagering, including the states of Nevada, Mississippi, and Kentucky. Nonetheless, it is possible that these states will legalize sports betting in the near future.
