The Federal Government Regulates Online Gambling

Online gambling is an industry that has grown exponentially in recent years. People from all over the world are able to play games and wager on different kinds of sports online. This type of online gambling carries a number of risks including identity theft, spyware, and viruses.

In the United States, the federal government regulates internet gambling through a number of laws. The Illegal Gambling Business Act and the Wire Act are two laws that impose strict limits on online gambling. Other federal criminal statutes include the Racketeer Influenced and Corrupt Organizations Act, or RICO.

Many of these laws are based on the Commerce Clause, which grants the government the power to regulate interstate commerce. However, this legislative power has been questioned on constitutional grounds.

One attack on the Commerce Clause is based on the First Amendment’s guarantee of free speech. While this has failed to garner much attention, it does raise the issue of what constitutes a crime facilitating speech.

A more direct approach to the question of whether or not illegal Internet gambling is a violation of the First Amendment involves a case against K23 Group Financial Services. The company was charged with money laundering and violations of the UIGEA. Its owners agreed to pay a fine of $4.2 million and launch a public service campaign.

The issue of criminality in online gambling is also a concern for state officials. The federal government has warned PayPal that it could be subject to prosecution for accepting payments from a client who allegedly engaged in illegal Internet gambling.