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Internet Gambling Legal

by Jerry "Jet" Whittaker
June 02, 2006

Many gaming businesses preserve Internet sites to allow enthusiasts to gamble on-line. Several types of betting are accessible through such services, including sports wagers, casino-style games, lotteries, bingo, and off-track betting. The legal status of Internet gambling is unsure because the games are more difficult to define. Internet systems enclose aspects of many different types of traditional gaming pursuits. Federal laws concerning interstate electronic transmissions may affect the legality of these operations, although the exact status of these regulations is evolving through court interpretations. Additionally, some states openly regulate Internet gambling based on whether the player is physically present in that state when the gambling takes place.

Legal issues: whether internet gambling is legal or not

Internet gambling elevates related consumer credit and protection issues. Generally, Internet gambling operations require that players deposit some money up front by credit or debit card or other payment. These payments wrap the player's transactions. Creditors generally may not enforce gambling debts, so this procedure protects the operator from losing money from nonpayment of losses. More lately, some sites offer gambling with no prior deposits, bringing these sites under regulation as sweepstakes in most instances. Off-shore operations frequently claim to hold foreign licenses that allow on-line gambling. Depending on the licensing jurisdiction, regulatory oversight and initial background checks may be spotty at best, so gamers should progress with caution. Other businesses evade Internet connections and allow gamers to connect directly to the operator's computer system. Other systems permit gamers to dial in to an interactive gambling system through which they can place wagers using a touch-tone phone. Technologies such as interactive television and stand-alone arcade-style gaming devices raise additional opportunities for gaming, as well as other regulatory issues.


The United States Supreme Court has lined twice on the statute Congress passed and the FCC's regulations implementing the statute. Firstly, it has ruled that a state may prohibit a broadcaster from advertising another state's lottery when the broadcaster's state does not approve a lottery. It concluded that as Native American casinos are allowed to broadcast advertisements, private casinos must be allowed to advertise on TV or on the radio in the state it is authorized to operate, even though the broadcast signals might be heard in neighboring state that does not authorize privately run casinos.













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