The Federal Government’s Role in Regulating Online Gambling


Throughout the United States, there are many forms of gambling. These include games of chance, sports wagering, and online gambling. Each state regulates gambling differently. Some have a plethora of gambling opportunities, while others have limited options. In most cases, a license is required before you can gamble.

In addition to state laws, there are federal legislations governing gambling. In the past, Congress has used the Commerce Clause to regulate gambling on Native American land. In some cases, these laws have impeded states’ efforts to regulate gambling activity on Indian reservations within state borders.

For example, the National Council on Problem Gambling’s study on sports betting concluded that the negative effects of gambling were more pronounced in sports betters than in the general public. While gambling is legal on a federal level, many states have adopted anti-gambling legislation.

Despite federal and state prohibitions on gambling, the act is still widespread. For example, there are numerous gambling establishments that operate on ships outside of territorial waters. Many of these establishments also offer online gambling opportunities. There are several nations in the Caribbean where online gambling is legal, as well. There are also many countries that have laws in place restricting gambling.

The House of Representatives held a hearing on online wagering policies last year. During the hearing, it was also revealed that Google removed online gambling advertising from its sites, even though the Department of Justice had claimed that all forms of Internet gambling were illegal.

While some states have legalized online gambling, others have not. In some cases, the state of Wisconsin is one example of a state that has taken a very anti-gambling stance.

The Department of Justice has also cited the Wire Act of 1961, which was drawn up before the internet was a commonplace. While it is unlikely that Congress will ever repeal the Act, the Department of Justice did announce that the Act has been expanded to include all forms of legal Internet gambling.

For the most part, however, states have not taken a particularly active approach to enforcing gambling laws. In addition, several bills have been introduced to the House over the years. One example is the HR 2046, a bill based on the UIGEA, which would require Internet gambling facilities to be licensed by the director of the Financial Crimes Enforcement Network.

The New York legislative session also tried to legalize online casinos, but failed. Likewise, Indiana launched retail sports betting apps in February 2020. While the law was passed in the state, it was only legalized during the football season.

In some cases, the laws pertaining to gambling on the internet are a bit more complicated than that. In the case of sports betting, the most important rule is that the state you live in regulates the activity. Some states have a minimum age requirement for gambling. In other cases, the age requirement is the same as the minimum age for betting at a brick and mortar casino.