Gambling is the act of placing a bet on something of value, typically a sporting event. There are many forms of gambling, including sports betting, horse racing, casino games, poker, and bingo. In the United States, some states have even legalized online poker and casino games.
Several federal criminal statutes are implicated in illegal Internet gambling. These laws include the Travel Act, the Interstate Wire Act, the Racketeer Influenced and Corrupt Organizations (RICO) statute, and the Unlawful Internet Gambling Enforcement Act. Each of these statutes has its own merits and detractors.
The UIGEA is a statute that targets unregulated offshore betting sites. The law requires financial institutions to ban the processing of transactions to such websites. It also makes it a crime to accept financial instruments from those with an illicit connection to the Internet.
The UIGEA also has a long list of exceptions. For instance, the act of entering a bet into a website in New York State constitutes a gambling activity in that state. Some states, like Nevada, have gone further and granted exemptions for particular forms of betting.
A few years ago, the Department of Justice issued a legal opinion in the area of gambling. The Department of Justice believed that the Wire Act only applied to online sports betting and other similar forms.
However, the Department of Justice changed its interpretation of the Wire Act. This has led to several legal wrangles. As a result, the Internet Gaming Devices Transportation Act, also known as the Johnson Act, has also become relevant.