Internet Casino Gambling is Not Illegal in the United States

The recent news of Congressman Barney Frank introducing a bill to legalize online gambling is a misnomer of sorts in that gambling at Internet casinos and online poker rooms is not currently illegal in the United States. There are eleven individual states that have laws that disallow their residents from gambling in any form online, but the other thirty-nine US states have no laws banning the activity.

The Unlawful Internet Gambling Enforcement Act that was passed in October of last year, that the Internet gambling community is fighting to repeal, does not make anything illegal that wasn't already illegal to begin with. The question is, what was illegal to begin with? And the answer to that question is complicated, to say the least.

Many lawyers and Internet law experts have analyzed the UIGEA and they have found that the law does not extend any prior laws having to do with Internet gambling. To put it simply, the law disallows banks and other financial institutions from accepting transfers to illegal online gaming operations. The question still remains, what is an illegal online gaming operation?

Currently, the only type of gambling online that is illegal under federal US law is online sports betting. Although, that illegality is not quite clear either. A case was brought up years ago to figure out what was covered under the 1969 Wire Act. In that case the judge concluded that betting at online casinos in the form of placing wagers on casino games such as slots, blackjack, roulette, and craps, is not covered under the 1969 Wire Act. In the judge's decision poker was also not considered to be illegal, however sports betting was.

Other than that case, there is no specific case and no specific federal law that makes it illegal to gamble at online casinos or poker rooms.

This raises some other questions. If gambling at online casinos and poker rooms is not illegal, why did the majority of legitimate online casinos and poker rooms leave the US market, and why did financial institutions implement restrictions against money transfers to these places? Again, the answers are complicated and unclear.

One thing is for sure. Attorney General Alberto Gonzales, who is ultimately responsible for implementing the banking requirements for the UIGEA, has a very difficult job ahead of him. Because nowhere in the UIGEA does it say what is illegal, Alberto Gonzales has no way to tell bank institutions what transactions to deny.

This is why the UIGEA must be appealed. It is an ambiguous law that sends fear to the legitimate online casino and poker room operators, and it gives the general public the false view that Internet gambling is illegal.

Also, main stream media has reported several times since Barney Frank announced his new law that Internet gambling is illegal. That is simply not true and it is irresponsible reporting to state that it is is.

April 30, 2007
Posted By Bob Hartman
Staff Editor, CasinoGamblingWeb.com    Previous Page | Internet Gambling | Top Online Casinos | Submit News!