As reported by Reuters: “U.S. casinos wish they had access to the growing
universe of gamblers that seem intent on placing bets online, but companies
claim they are not losing customers to the foreign operators that offer Web
wagering. “‘It represents an enormous opportunity,’ said Alan Feldman,
spokesman for U.S.-based MGM Mirage, the world’s second-largest gaming
operator. ‘And it is an opportunity that is being completely handed to
foreign companies right now.’ “Standing in the way of this potential
windfall is a 1961 federal law that forbids interstate telephone betting
that the U.S. Justice Department has said also applies to the Internet,
making it illegal for U.S. companies to offer online gambling.

“But the law is difficult to enforce on operators based abroad, who are
luring a growing number of American gamblers to their Web sites, even as
some U.S. lawmakers renew attempts to snuff out the business.

“…The number of Americans who placed bets on the Web doubled in 2005 to
about 4 percent of the adult population…”