US Government to Review Legality of Online Gambling

us-online-gamblingThe legality of online gambling is never constant- it keeps on changing. However, there exists something that will remain constant. And the thing is- online gambling makes enormous money. Admittedly, the revenues made annually through online gambling are so huge that it’s difficult to eliminate this “business.” As we talk now, online gambling makes more than one billion dollars annually.

We all agree that this is a significant business, and many gamblers have risked their hard-earned money. Since millions of United States citizens gamble online, there popped some of them who wanted to know if online gambling is legal or illegal form the jurisdiction they are living in, or generally, if the whole thing is legal in the US.

First off, many people believe that Federal law has prohibited online gambling. But the fact remains that Federal law has not banned it. That’s just a myth that was caused by poor understanding of the explanations in the Unlawful Internet Gambling Enforcement Act of 2006. The act focuses on Wire Transfers. It provides that no individual or entity that is allowed to accept cash knowingly from a person who participates in unlawful online gambling. The key word there is “Accept.” So you can send your money, but no one accepts it.

Moreover, it’s patently ridiculous that this law can exist because is just an add-on portion of legislation in the SAFE Port Act. And a matter of fact, this piece was a significant portion of the Legislation for some reasons. Surprisingly the Act passed the Senate unanimously. When it comes to the House of Representatives, the Act also passed unanimously with only two Nays in the house.

Unfortunately, a group of Republicans tacked on this act. In a point of view, these Republicans didn’t identify as Libertarians. Though the SAFE Port Act was significant, UIGEA was not. A lot of Legislators claimed that they never had time to read the Act. That said, if the legislators had the opportunity to scrutinize it thoroughly, the possibility that the law could have failed is high.

For that reason, Payment Processing companies are frequently used to allow money transfer from the gamblers to the Online gambling sites. Therefore, the law wants people who are operating the online gambling sites to be running them from outside the US as well as live outside the US too. The law also requires the players in Payment Processing companies to submit their Credit Card information on any online site the players choose.

Most of the times, this language is misinterpreted hence making it appear illegal for players to transfer funds knowingly to the online casinos outside the US. IT ALSO COMES AS A MISINTERPRETATION TO USE THEIR CREDIT CARDS to transfer funds or to send money knowingly via a payment processor for online gambling purpose. According to the Federal level, those statements tend to be less true. UIGEA doesn’t penalize its gamblers who play online or transfer funds for that purpose.

Anybody who feels uncomfortable and he/she is not in a State where it’s expressly illegal, the best thing to do it research your County or Municipal rules. From there, a person sees the prohibitions made against it. You can go ahead and know if anyone has ever been charged for online gambling. You can find it as technically illegal and at the same time, essentially unenforced. Some of the laws were made when the Internet never existed, and lawmakers take no priority of updating them.

That said, each State in the US has laws governing online gambling. You can find that some States allow them while others don’t allow or even other States are striving to introduce laws that legalize it. More importantly, not all online gambling types are fully legal regardless the state has less or more regulated companies.

Last Updated: July 7, 2019