Several federal criminal statutes are implicated by illegal Internet gambling. These statutes include the Wire Act, the Federal Alcohol Administration Act, the Money Laundering Control Act, the Federal Communications Act, the Unlawful Internet Gambling Enforcement Act, the Consumer Protection Act, the Unfair Trade Practices Act, and the Federal Trade Commission Act. The statutes are designed to keep online gambling from bringing illegal gambling into the United States.
The Wire Act prohibits illegal gambling on sporting events. This includes betting on sports, lotteries, and pool-selling. It also bans illegal gambling on contests. It does not apply to the horseracing industry, Native American tribes, or other remote gaming activities.
The Unlawful Internet Gambling Enforcement Act prohibits transfers of money to online gambling sites. This includes credit cards, debit cards, electronic checks, and online payment services. The statute also requires age verification. It includes appropriate data security standards.
Section 1956 creates several new crimes. It also creates laundering, which is laundering to conceal, disguise, or promote illicit activity. It also creates laundering for law enforcement stings and laundering for international purposes.
Several attacks have been made on the law, based on the Commerce Clause, the Due Process Clause, and the First Amendment. These attacks have not gained much traction.
In 2000, there were about six hundred to seven hundred Internet gambling sites in the United States. Most of these sites did not pay taxes to the home countries.
In March 2005, the headquarters for five hundred gambling sites were in Antigua. Antigua’s regulations required that 3% of gambling revenue go to the government. This requirement had a monthly cap of $50,000.