Is Internet gambling against the law?.
Well it depends because gambling in general is considered to be a matter of state concern, and each state has regulated gambling activities independently. Lets take for example, Nevada, a state where gambling is essential to the state's economy. On the other hand, the state of Utah is completely opposed to any means of gambling for the inhabitants of its state . Since there is so much discrepancy on the state level, the federal government decided that it is going to enact laws to hinder gambling.
Federal Laws and its implications.
As a result of all the inconsistencies on the state level, Congress decided that it was going to instill its own regulations on gambling via the control interstate commerce2. Nonetheless, the federal government enacted these regulations prior to the launch of internet gambling. They include: The Wire Wagner Act, The Travel Act, The Interstate Transportation of Wagering Paraphernalia Act, The Professional and Amateur Sports Protection Act.
The Wire Wagner Act.
The Wire Wager Act states:.
"Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both. -.
However, this law doesn't quite bridge the gap to Internet gambling because it requires an actual, physical "wire- (i.e, telephone) to connect the two parties placing and accepting the wagers. There are no wires in cyberspace. Not to mention the fact that there are wireless connections to the internet these days via cell phones and other handheld electronics such as personal digital assistants (pda), and the Wire Wagner Act would not apply .