Internet Gambling Law
by Jerry "Jet"
Whittaker
April 25, 2006
Introduction –
With an increasing volume of internet gambling business,
instances of frauds are also rising. Some of the
gambling businesses are themselves being conducted in an
illegal way for illegal purposes. Hence, there arises a
need to legalize it and make the online gambling
business profitable for the nation.
US State Laws on Internet Gambling –
Most US states have declared it illegal to operate any
type of gambling businesses other than the state
sponsored ones including the legalized activities like
lotteries, horse racing, riverboat gaming. Most of these
state laws are comprehensive.
Tennessee State Law says "a
person commits an offence if he knowingly engages in
gambling". Gambling is defined
as "risking anything valuable
for a profit whose return to any degree depends upon
chance". It does not include
any lawful business transaction in gambling. The phrase
"for profit"
says only gambling carried on as a business would be
prosecuted in Tennessee.
Massachusetts Law states that anyone knowingly
organizes, supervises, manages or finances at least four
persons so that they can provide facilities / services
or assist in the provision of facilities / services for
conducting illegal lotteries or for illegal registration
of bets or illegal purchase or sale of pools depending
upon the result of a trial or contest of skill, speed or
the endurance of man, beats, bird or machine, or upon
the happening of any event, or upon the result of a game
/ competition / political nomination / appointment /
election or anyone knowingly receiving from at least
four persons compensation / payment in any form as a
return from such lotteries, such registration or buying
or selling shall be considered an offence and punished
with imprisonment for up to 15 years or fine of up to
$10,000 or both.
These laws on internet gambling differ from one state to
another. Consulting an attorney to understand the
intricacies of any law is advisable.
Federal Law on Internet Gambling in US –
The federal law regulating the
internet gambling
prohibits those in the betting or wagering business from
knowingly using the wire communication facility in
interstate / foreign bets or wagers or transmission of
information assisting placing of bets or wagers, on any
sporting event or contest. Violation of the law is
punishable with fine or imprisonment of up to 2 years
and seizure of assets under racketeering laws.
Interstate transmission
of bets or gambling information can be legal only if
both – the state of origination and the state where the
bet is placed allow such bets / wagers.
There is legislation for prosecuting those using online
gambling sites with a fine up to $5,000 or 1 year
imprisonment or both. However, as of now, not the site
user but only the virtual casino can be prosecuted.
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