Online Gambling is illegal in the U.S., and the federal government has taken action against operators. In a recent case, the United States filed a lawsuit against the founders of three major online poker companies, alleging violations of the Unlawful Internet Gambling Enforcement Act (UIGEA), money laundering, and bank fraud.
France recently proposed new laws governing online gambling. The proposed legislation would tax and regulate these games. The budget minister, Eric Woerth, stated that the gambling market would adapt to “Internet reality,” although betting exchanges would still be illegal. But there’s some good news for gamblers. France is not the only country that has legalized online gambling. Delaware and New Jersey have begun regulating the industry.
While the Department of Justice argues that all forms of Internet gambling are illegal in the United States, the Fifth Circuit and many state attorneys general disagree. The UIGEA, which prohibits online gambling without a license, does not prohibit betting on horse races, but does prohibit state lotteries. The United States House of Representatives has held hearings on online wagering policies, but the Department of Justice says its legislation is not legal.
The law also protects Internet users from being targeted by criminals. Gambling over the Internet is largely a matter of state law, but federal law reinforces state laws in some cases. States have expressed concern that the Internet could be used as a tool to bring illegal gambling to their jurisdictions.