Several federal criminal statutes have been implicated by the illegal gambling found on the Internet. However, there is no single federal law that can compel Internet gambling businesses to do what is required to avoid a federal crime. Rather, it is the state laws that will trump federal law in most cases. As a result, state officials are often concerned that Internet gambling will one day be illegal in their jurisdiction. This concern has been exacerbated by the fact that there are interstate and foreign elements that will make it hard for them to enforce their laws.
One of the first things to consider is whether the state laws in question are actually applicable to Internet gambling. In the case of New York, Internet gambling can be considered a legal activity when it is performed within the confines of the state. However, when Internet gambling involves activities occurring outside of the state, the federal government has a much wider net to play. The best defense to online gambling is to limit its growth and to enforce laws against it. This is not a simple task, however.
In fact, Internet gambling has triggered a wave of lawsuits, some of which are a direct result of the aforementioned state laws. One such case involved an Internet gambling operation in Costa Rica. The prosecutors who brought the suit claimed that the company did not do enough to ensure that its customers were playing within the bounds of Costa Rican law. In response to this claim, the Federal Communications Commission has proposed that Internet gambling providers be compelled to comply with the law. However, such a proposal is unlikely to become law anytime soon.
In addition, a number of federal statutes have been cited as a basis for litigation. One of these statutes is the Illegal Gambling Business Act. The statute provides that it is unlawful to engage in or promote “illegal gambling.” In addition, the statute prohibits the use of “an Internet service provider” to make “bets” or “transfers” on the Internet. It is also illegal to use the Internet to transmit “bets” to persons outside of the United States. In addition, there are several other statutes that can be applied to Internet gambling providers, including the Wire Act. These statutes prohibit the use of “contests” and “sports games” as well as the illegal use of gambling “to conceal or evade the payment of taxes.” The statutes also prohibit the operation of “illegal gambling businesses.”
The nexus between the Internet and state laws is a complex one, a topic of debate on the state and federal levels. While the state of Nevada has the most state-specific laws, many states are beginning to grapple with the issue. In fact, New Jersey has recently enacted legislation aimed at Internet gambling businesses. The legislature cited a number of reasons for its enactment. It included the fact that there are hundreds of Internet gambling operators that operate in the state, most of whom are foreign-based. In addition, a number of state officials have expressed concerns that the Internet may be used to smuggle illegal gambling into their jurisdictions.
