Is online gambling illegal?

theclassic · 09-12-2005, 03:31 PM

Hi,

I'm sure this topic has been discussed over and over, but I don't know if it is or isn't. I have friends who gamble online, and havn't gotten into any trouble, and in almost every football preview magazine, their is some ad for a casino. I understand that it's their legal right to publish an ad, but wouldn't the goverment crack down on national publications for advertising illegal activities with the United States?

I did some research on the internet myself, and it says that gambling online is legal, but only if you are in a state or city where gambling is permitted. So I take that as I live in Wisconsin, gambling is illegal, so it must be illegal online, am I right?

Thanks for the help.

Subby · 09-12-2005, 03:38 PM

http://www.usatoday.com/tech/columnist/kimkomando/2005-04-25-online-gambling_x.htm

Online poker games deal illegal hands

Imagine this: You visit a Web site, download a program and register with the site. A few minutes later, you're sitting at a virtual poker table, happily playing Texas Hold 'Em.
You're playing with real money. You've paid for virtual betting chips via an escrow service. And, if you're lucky enough to win, your account will be credited with money.

What's wrong with this picture? It's illegal, according to the Department of Justice.

Thousands of gambling Web sites operate offshore, conveniently beyond the grasp of U.S. regulation.

Online casinos have been around for about a decade, and the recent rise in the popularity of poker has spurred their growth. According to Keith Furlong, deputy director of Interactive Gaming Council, an industry trade organization located in Canada, online casinos will attract about $10 billion this year. Americans make up 60% to 65% of their business, he says.

Some states have passed laws prohibiting online gambling, but no federal laws specifically address it. Instead, the federal government relies primarily on the Wire Wager Act to prosecute online casino operators.

Under the act, business owners who accept bets via a "wire communication facility" face fines and imprisonment. The act was intended to curb the use of the telephone to accept bets.

Opponents are quick to note that the act was written in 1961 — long before the Internet. They question whether the law applies to online gambling. And they insist that online gambling is a gray area at best.

However, the Justice Department is adamant that online gambling is illegal. And in 2000, it successfully prosecuted American Jay Cohen, part owner of the World Sports Exchange in Antigua.

Since 2002, the Justice Department has pressured media companies to pull ads for online gambling. Clear Channel, the nation's largest radio company, stopped airing ads for online casinos that year, and other mainstream media companies have followed suit.

Banks also have come under pressure from the Justice Department. Many decline credit card transactions from online casinos. Bank One, which recently merged with JP Morgan Chase, is among them.

"(It's) because of the high likelihood of fraud," says Mary Jane Rogers of Bank One. "Bank One may restrict transactions that appear to be Internet gambling." She adds that the bank can't always tell that a charge is from a casino.

Other payment options also are becoming scarce. PayPal stopped processing payments for gambling in 2002. That left only a few lesser-known escrow agents that work with the casinos.

Recently, the World Trade Organization ruled that the United States can regulate online gambling to protect public morals. However, the ruling says U.S. laws must be clarified.

The ruling followed a suit by Antigua and Barbuda, claiming U.S. restrictions amounted to unfair trade practices. The economy of the Caribbean nation relies heavily on Internet gambling. The nation points out that the United States allows gambling within its borders. And, in the case of state lotteries, the gambling is sometimes government-sponsored.

The Caribbean country views the WTO ruling as a victory. It sees two options for the United States. The first is that the United States must ban all gambling. The second option would be to grant offshore companies access to the market. The Justice Department did not return calls for comment.

Many U.S. Web users continue to visit these sites in record numbers. Currently, the federal government does not prosecute the gambling sites' customers, but some state governments do.

The WTO hopes to reach a final resolution about the dispute between the United States and Antigua and Barbuda later this year. Meanwhile, Americans may well be breaking U.S. laws when playing poker online.

Honolulu Blue · 09-13-2005, 04:26 AM

To summarize in 30 words or less:
Murky federal legality.
Definitely illegal in some states.
Individual bettors HIGHLY unlikely to be prosecuted.
Setting up a US online sin bin NOT recommended.
Subject to change with little notice.

09-12-2005, 03:38 PM	#2
Subby lolzcat Join Date: Oct 2000 Location: Shut up, rowech.	http://www.usatoday.com/tech/columnist/kimkomando/2005-04-25-online-gambling_x.htm Online poker games deal illegal hands Imagine this: You visit a Web site, download a program and register with the site. A few minutes later, you're sitting at a virtual poker table, happily playing Texas Hold 'Em. You're playing with real money. You've paid for virtual betting chips via an escrow service. And, if you're lucky enough to win, your account will be credited with money. What's wrong with this picture? It's illegal, according to the Department of Justice. Thousands of gambling Web sites operate offshore, conveniently beyond the grasp of U.S. regulation. Online casinos have been around for about a decade, and the recent rise in the popularity of poker has spurred their growth. According to Keith Furlong, deputy director of Interactive Gaming Council, an industry trade organization located in Canada, online casinos will attract about $10 billion this year. Americans make up 60% to 65% of their business, he says. Some states have passed laws prohibiting online gambling, but no federal laws specifically address it. Instead, the federal government relies primarily on the Wire Wager Act to prosecute online casino operators. Under the act, business owners who accept bets via a "wire communication facility" face fines and imprisonment. The act was intended to curb the use of the telephone to accept bets. Opponents are quick to note that the act was written in 1961 — long before the Internet. They question whether the law applies to online gambling. And they insist that online gambling is a gray area at best. However, the Justice Department is adamant that online gambling is illegal. And in 2000, it successfully prosecuted American Jay Cohen, part owner of the World Sports Exchange in Antigua. Since 2002, the Justice Department has pressured media companies to pull ads for online gambling. Clear Channel, the nation's largest radio company, stopped airing ads for online casinos that year, and other mainstream media companies have followed suit. Banks also have come under pressure from the Justice Department. Many decline credit card transactions from online casinos. Bank One, which recently merged with JP Morgan Chase, is among them. "(It's) because of the high likelihood of fraud," says Mary Jane Rogers of Bank One. "Bank One may restrict transactions that appear to be Internet gambling." She adds that the bank can't always tell that a charge is from a casino. Other payment options also are becoming scarce. PayPal stopped processing payments for gambling in 2002. That left only a few lesser-known escrow agents that work with the casinos. Recently, the World Trade Organization ruled that the United States can regulate online gambling to protect public morals. However, the ruling says U.S. laws must be clarified. The ruling followed a suit by Antigua and Barbuda, claiming U.S. restrictions amounted to unfair trade practices. The economy of the Caribbean nation relies heavily on Internet gambling. The nation points out that the United States allows gambling within its borders. And, in the case of state lotteries, the gambling is sometimes government-sponsored. The Caribbean country views the WTO ruling as a victory. It sees two options for the United States. The first is that the United States must ban all gambling. The second option would be to grant offshore companies access to the market. The Justice Department did not return calls for comment. Many U.S. Web users continue to visit these sites in record numbers. Currently, the federal government does not prosecute the gambling sites' customers, but some state governments do. The WTO hopes to reach a final resolution about the dispute between the United States and Antigua and Barbuda later this year. Meanwhile, Americans may well be breaking U.S. laws when playing poker online. __________________ Superman was flying around and saw Wonder Woman getting a tan in the nude on her balcony. Superman said I going to hit that real fast. So he flys down toward Wonder Woman to hit it and their is a loud scream. The Invincible Man scream what just hit me in the ass!!!!!

09-13-2005, 04:26 AM	#3
Honolulu Blue Dynasty Boy Join Date: Jan 2001 Location: Michigan	To summarize in 30 words or less: Murky federal legality. Definitely illegal in some states. Individual bettors HIGHLY unlikely to be prosecuted. Setting up a US online sin bin NOT recommended. Subject to change with little notice.

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