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The Federal Government Regulating Online Gambling

Online Gambling

In the US, the federal government has attempted to regulate the growth of online gambling. While it has been legalized in several states, it is illegal elsewhere. The US Department of Justice recently announced that all forms of internet gambling are covered by the Wire Act.

In response, the Federal Communications Commission has indicated that it may discontinue the leasing of its facilities. Google has also removed advertising related to online gambling from its sites.

Another federal statute, the Illegal Gambling Business Act, also bans gambling. It was introduced in the Senate in 1999.

Several similar bills have been introduced in the House. These bills would restrict the activities of online gambling to the sale of lottery tickets and horse races. They are opposed on both constitutional and economic grounds.

There are seven federal criminal statutes involved in the criminalization of illegal Internet gambling. Among them are the Wire Act, the Illegal Gambling Business Act, and the Racketeer Influenced and Corrupt Organizations (RICO) provision.

In a recent criminal case, the owner of a bitcoin poker site was fined $25,000 and was sentenced to two years probation. In addition, Discovery Communications accepted ads from Tropical Paradise, a Costa Rican casino operation.

Although federal law can help enforce state laws in cases of illegal gambling, state law is often more effective. For instance, New York State has ruled that an act of transmitting information from New York via the internet is a gambling activity.