Online gambling has become a popular form of entertainment, but it can be dangerous as well. It is possible to lose large sums of money while betting. It also can lead to addiction. Educating children about the dangers of gambling is essential.
There are several federal laws that can apply to illegal online gambling. The Wire Act, for example, applies to wagering businesses. The Department of Justice maintains that all Internet gambling in the United States is illegal. In addition, the Indian Gaming Regulatory Act governs gambling activity on Indian reservations. But there is a legal loophole that allows Internet gambling operations to establish a business in a jurisdiction outside of the United States.
The Federal Communications Commission has the authority to regulate Internet services. However, it is unclear whether it has the authority to enforce gambling laws. In the meantime, state officials have expressed concerns about Internet gambling.
In addition, there are some states that have not been particularly active in enforcing Internet gambling laws. This could be because of a conflict between the dormant Commerce Clause doctrine and state law.
The Commerce Clause supposedly grants the power to the federal government to regulate and control any interstate and foreign commerce. The commercial nature of the gambling business appears to satisfy that theory. But, questions have been raised about the legality of regulating gambling in the absence of a constitutional guarantee of free speech.
There are also challenges to the enforcement of federal gambling laws. Some have argued that due process should be afforded to those who are subject to prosecution. Another issue is that Internet-based gambling threatens to expand the reach of gambling.