Online Gambling is the practice of placing bets or playing games of chance for money over the Internet. There are various forms of gambling, including sports betting, casinos, bingo, poker, and online slot machines. The primary objective of gambling is to win prizes. However, there are rules and regulations that govern the industry.
In recent years, the online gambling industry has grown rapidly. As a result, the federal government has taken steps to regulate the industry. Several bills have been introduced in Congress. HR 2046, for instance, would require Internet gambling facilities to be licensed by the director of the Financial Crimes Enforcement Network.
The Department of Justice also recently announced that the Wire Act will apply to all forms of Internet gambling. These laws are designed to prevent illegal gambling. But it is unclear whether the law will preempt state action in the Internet realm.
Some states have expressed concern that the Internet may be used to bring illegal gambling into their jurisdictions. For example, Washington prohibits websites from advertising online gambling.
It is difficult to determine whether the Commerce Clause doctrine would allow the federal government to prosecute illegal gambling. This question has raised concerns about the First Amendment. When financial transactions are involved, the argument based on the dormant Commerce Clause doctrine has little effect.
On the other hand, the commercial nature of the gambling industry may reassure the dormant Commerce Clause doctrine. Many states have not been particularly active in enforcing their own Internet gambling laws.