The federal government has attempted to regulate online gambling and has found several ways to do so. For example, the law creates criminal offenses based on money laundering, money transmission, and facilitating illegal activities. Nevertheless, there are constitutional objections to these laws. The Commerce Clause and the First Amendment both limit government power, and there are also questions about the First Amendment’s protection of speech.
Despite the fact that most states now allow online gambling, there are a number of nuances in each state. For example, in the US, online gambling is illegal in several states, while it is not prohibited in others. Some states have limited offerings, while others have banned it all together. In New Jersey, the New Jersey Division of Gaming Enforcement is responsible for overseeing internet gambling. In addition to sports betting, internet gambling is allowed in fantasy sports, lotteries, and horse racing. In Pennsylvania, the Gaming Control Board regulates online gambling. There are currently over twenty states that allow residents to wager on sports online.
The New York State attorney general’s office has also taken steps to regulate online gambling. It ruled in a case called United States v. K23 Group Financial Services that Internet poker operators violate the UIGEA and 18 U.S.C. 1955, as well as money laundering. Although this case has yet to be decided, it does show that online gambling is not completely legal.
The federal government has also banned illegal internet gambling. According to 31 U.S.C. 5362(10), illegal internet gambling involves placing, receiving, or transmitting bets using the internet. Furthermore, internet gambling is illegal for the purpose of interstate commerce. In addition, it violates the anti-trust laws.