Regulations of Online Gambling
Online Gambling is a form of gambling in which betting is done over the Internet. This includes casinos, sports betting, and virtual poker. Some countries in the European Union allow online gambling, and a number of jurisdictions in the Caribbean and North America permit it.
In the United States, the federal government has attempted to regulate internet gambling through the federal Wire Act. The act states that a business engaging in an activity that involves wagers on the Internet is an illegal enterprise.
In the United Kingdom, the Gambling Commission oversees the regulation of online casinos. A handful of operators have begun to implement policies to screen for high risk players.
However, these attempts have met with limited success. Attacks based on the Commerce Clause and the Due Process Clause have also had limited success.
Internet-based gambling poses a unique set of problems relating to electronic payment and availability. These issues are exacerbated by the interstate element of the operation. State officials have expressed concerns that the Internet could be used to facilitate illegal gambling in their jurisdictions.
Regulations must be amended to understand the impact of internet gambling. Currently, the most popular deposit methods are debit and credit cards.
In order to legally operate a gambling site, a company must obtain a license from a state gaming authority. In addition to licensing, the service provider must adhere to strict security standards. An industry standard 128-bit encryption is used to ensure the security of funds.