How Online Gambling Is Regulated


Gambling is a lot more than just betting on sports. Besides wagering money, it includes playing a game of chance and taking risks to win a prize. There are several forms of gambling, which are regulated on a state and federal level. Each state is responsible for regulating different aspects of gambling, including legal age for wagering, the type of wagering allowed, and the place where it is conducted. Some states allow gamblers to wager from the comfort of their own homes, whereas others require the gambler to visit a licensed casino or resort.

The Internet has opened up a new frontier of opportunities for people who enjoy gambling. The revenue from online gambling jumped from $830 million in 1997 to over $21 billion in 2008. More than a third of the market came from online casinos. Several countries restrict or ban online gambling, but the US is an exception.

In the past, the US had one of the most restrictive gambling laws in the world, but that is now changing. Federal laws are being amended and new ones are being passed to allow citizens of some US states to participate in online gambling. While some of these laws are not very specific, it seems that the federal government has no plans to stop states from taking action to regulate the industry.

On the state level, the law is divided into three major categories: online poker, casinos, and sports betting. State-run casinos and sports books help raise funds for local communities, thereby easing the taxpayer burden. They are generally good for the community as a whole, as most of the profits are returned to the area in the form of charity donations. It is also important to note that some states have a legal minimum age for gamblers, so be sure to check before making a bet.

Online gambling is also regulated by the US federal government, though not as actively as the state governments. The Wire Act of 1961 was designed to protect against rogue gamblers. Nevertheless, it is largely obsolete in the digital age.

Another law of the plethora is the Professional and Amateur Sports Protection Act, which prohibits most states from allowing traditional sports wagering. In 2018, the US Supreme Court ruled that the act is unconstitutional, thereby overturning the ban. Since then, more states have joined the sports-betting party. New Jersey, Delaware, Mississippi, and West Virginia have already made the move, and more are on their way.

In addition to state-sponsored gaming, most nations in the Caribbean and the European Union have legalized gambling online. Even France is on board with this trend, considering the French budget minister recently stated that the country would expand its gambling industry to match its Internet realities.

Lastly, there are federal regulations on gambling on Native American territories. In the past, the federal government has used its Commerce Clause powers to largely regulate this activity.

With the advent of the Internet, the government was forced to rethink its strategy. The Department of Justice has taken the lead on the subject, opining that the Wire Act applies to all forms of online gambling.