Online gambling is a form of gambling that involves placing, receiving, or transmitting wagers through the internet. It mainly includes poker, casinos, and sports betting. Some states have laws that allow for online gambling while others prohibit it.
In 1998, revenues from online gambling reached $830 million. The Frost & Sullivan report indicated that there were fifteen to 200 gambling websites at the time. Many of these sites advertised. Yahoo! was also accused of marketing illegal online gambling.
The Internet Gambling Prohibition Act was introduced in the US Senate as a bill in 1999. This act would have prohibited online gambling to citizens of the United States. There have been several similar bills introduced in the House.
In April 2007, Rep. Barney Frank introduced HR 2046, which is the acronym for the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. This law would require the director of the Financial Crimes Enforcement Network to license online gambling facilities.
Other bills include the Jon Kyl and Goodlatte bills, which would restrict online gambling activities. These bills would prohibit Internet gambling for all persons under 18 and ban online gaming in states where lotteries are not legal.
Another bill is the Interactive Media Entertainment and Gaming Ass’n v. Nicolaou case. This case involved the owner of a bitcoin poker site that was seized by U.S. marshals. They charged that the site violated the UIGEA.
One of the biggest problems with the law is its broad definition of “Internet gambling.” For example, it includes betting on a horse race. Regardless of whether this is a legal activity, there is no way to verify who is placing bets.