betting and gambling
Internet Gambling – Federal Regulation
The World Wide Web in 1990 was growing rapidly and with this online gambling found a way to go around government control and prohibition. All that a site operator needed to do was to establish a business in an offshore jurisdiction and start taking bets. This then saw the Department of Justice and Congress explore the applicable current law and the appeal of new regulation for online gambling.
The Wire Act gained focus during the investigation if offshore Internet gambling that took bets from Americans violated federal law. Under the Wire Act the operator was at risk of a fine and being imprisoned if they knowingly used a wire communication facility to send information related to wagering on any sport event or contest. However, the act is legal in both the source and destination locations of the transmission. It would then seem that the Wire Acts definition for wire communication facility would them embrace the nation’s telecommunications infrastructure in its entirety and would then apply to online gambling.
Under the Wire Act all internet gambling by bettors in the US is illegal according to the Department of Justice.