Online Gambling is the process of placing bets on games or sporting events by using a computer and the Internet. This includes casinos, sports betting and virtual poker. Some countries allow these activities while others restrict them.
The United States Department of Justice has recently stepped in to enforce online gambling. Its efforts have been met with opposition, however. Many state officials are concerned that the internet could become a way to bring illegal gambling into their jurisdictions.
Since 2007, various bills have been introduced in the House to make it easier for the federal government to prosecute online gambling. One example is the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, or HR 2046. In addition to modifying the United States’ Unlawful Internet Gambling Enforcement Act, HR 2046 would require online gambling facilities to be licensed by the Financial Crimes Enforcement Network.
The United States has also charged three online poker companies with money laundering and bank fraud. A federal criminal case, United States v. Scheinberg, has been filed against the three companies.
The United States Department of Justice has argued that it has the right to regulate all forms of Internet gambling, regardless of where the activity takes place. The agency’s position is based on a combination of Constitutional objections, and the Commerce Clause. However, it has faced little success in proving its claims.
Federal attorneys have warned PayPal that it could face prosecution. However, some critics of the move say the law has no legal basis.