During the late 1990s, a number of laws were drafted in an attempt to make online gambling legal. These laws included the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, or HR 2046. This legislation would regulate online gambling and require online service providers to have licenses to operate. It would also require internet gambling facilities to be licensed by the director of the Financial Crimes Enforcement Network.
This statute was introduced in the US Senate in 1999. It would have prohibited online gambling to US citizens. This bill was ultimately rejected. However, several other similar bills have been introduced in the House.
This law is a federal criminal law, and the founders of three of the largest online poker companies were charged with violating the law. The case has centered on charges of money laundering. Several courts have ruled that the Commerce Clause does not give Congress the power to prohibit gambling, but the question has been raised as to whether the Constitution’s guarantee of free speech is applicable. In addition, the First Amendment has been challenged in the case.
Several other laws have been cited in the case. The United States District Court for the District of Massachusetts found that the Wire Act applies to all forms of Internet gambling. It has also been noted that state officials have expressed concern about Internet gambling, and state enforcement policies may be frustrated by interstate or foreign elements. In addition, the Justice Department warned PayPal that it could be charged with violating the law. It was also reported that American Banker reported a number of transactions from illegal Internet bettors.
The Federal Information Technology Rules have been developed to address online gambling. The rules prohibit websites from advertising gambling. They also prohibit any person from accepting financial instruments from illegal Internet bets. In Washington, advertising of gambling is illegal. The State of California has also ruled that advertising of gambling is illegal.
The first online gambling venue for the general public was the Liechtenstein International Lottery. However, this venue was closed in the late 1990s. The first internet poker room was created in 1998. In 1998, there were about 200 gambling websites. Online casinos have replaced traditional casinos. Some provinces of Canada allow online gambling. It is also legal in several nations in the Caribbean Sea.
The federal government has attempted to prosecute illegal Internet gambling on several grounds, but has found little success. A few examples of these challenges are based on the Commerce Clause and the Due Process Clause. Other attacks are based on the First Amendment, which guarantees freedom of speech, but the issue has not gained much traction. However, the commercial nature of the gambling industry seems to satisfy the doubts surrounding the Commerce Clause.
The Federal Communications Commission has the jurisdiction over common carriers, and may be able to stop leasing or providing facilities. They also have the authority to impose fines. Other states have argued that they are authorized to prohibit gambling on their own.
