Whether you are an entrepreneur looking to start an online gambling business or a management team looking to develop safe products, you will want to familiarize yourself with the legal issues surrounding gambling. This will allow you to determine the best region for your business.
In the United States, the Commerce Clause has raised questions about legislative power. One of these is whether it is legal to enforce federal criminal statutes on gambling through the internet. However, in most cases, the laws cited in these cases are state law. In this case, the United States has prosecuted illegal Internet gambling through its law enforcement stings, such as those conducted by the U.S. Marshals.
While the federal government has been successful in enforcing its gambling laws, these cases have raised constitutional concerns. The Commerce Clause, First Amendment, and Due Process Clause have been used to attack the enforcement of these laws. In many cases, these attacks have failed.
The Unlawful Internet Gambling Enforcement Act (UIGEA) has been challenged on constitutional grounds. In a nutshell, this law prohibits receiving, transmitting, or knowingly providing financial instruments in connection with an illegal Internet bet. This act has been challenged on the grounds of its infringement on free speech.
UIGEA has been used as a basis to charge online poker operators with violations of 18 U.S.C. 1955. In addition to money laundering, the UIGEA has been deemed illegal for other reasons.
The United States has also sued Sporting News for facilitating illegal Internet gambling. After a series of lawsuits, the company agreed to pay a $4.2 million fine and conduct a public service campaign to educate the public about the risk of online gambling.