Online gambling is the process of playing games for money using the Internet. This includes casinos, poker, sports betting, and virtual poker. While many people believe it is legal in the United States, it is illegal under several federal criminal statutes.
The Wire Act prohibits unlawful gambling on sporting events. It also prohibits facilitating unlawful gambling. Several other federal laws are implicated by illegal Internet gambling. These include the Federal Wire Act, the Illegal Gambling Business Act, and the Racketeer Influenced and Corrupt Organizations (RICO) provisions.
In addition to these federal criminal laws, a state’s law may also be used to enforce its own gambling regulations. For example, Illinois residents cannot wager on college or professional sports. If an Illinois resident bets on an event that takes place in an in-state college, he or she is still ineligible.
Another important law is the Travel Act. Section 1956 creates several distinct crimes. Among them are laundering with intent to promote illicit activity, laundering to disguise, and laundering to avoid taxes.
Because the Travel Act prohibits facilitating unlawful gambling, it applies to players who use interstate facilities to conduct unlawful activities. However, the presence of an interstate element frustrates enforcement policies based on state law.
A number of state officials have expressed concerns about the potential for illegal gambling on the Internet to enter their jurisdictions. Those concerns were raised in several court cases, including United States v. Nicolaou, United States v. Grey, United States v. Heacock, and United States v. Mick.