As reported by: Betting Market
The US Department of Justice has consistently maintained that online gambling is illegal. In a letter to US broadcast organisations dated 11 June 2003, John G.Malcolm, the Deputy Assistant Attorney General, Criminal Division,of the United States Department of Justice wrote;

"Notwithstanding their frequent claims of legitimacy, Internet gambling and offshore sportsbook operations that accept bets from customers in the United States violate Sections 1084, 1952, and 1955 of 18 of the United States Code, each of which is a Class E felony. Additionally, pursuant to Title 18. United States Code. Section 2, any person Or entity who aids or abets in the commission of any of the above-listed offenses is punishable as a principal violator of those statutes. The Department of Justice is responsible for enforcing these statutes and we reserve the right to prosecute violators of the law."

Statutory Instruments and State Laws
Known colloquially as the "Wire Wager Act," Title 18, United States Code, Section 1084(a) provides that:

"Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers, or information assisting in the placement of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years or both."

The purpose of the statute is two-fold:

- To assist the various States and the District of Columbia in the enforcement of their laws pertaining to gambling, bookmaking, and like offenses.

- To aid in the suppression of organized gambling activities by prohibiting the use of wire communication facilities which are or will be used for the transmission of bets or wagers and gambling information in interstate and foreign commerce.

The Prohibition of Illegal Gambling Businesses Act 1955 states that;

(a) Whoever conducts, finances, manages, supervises, directs, or owns all or part of an illegal gambling business shall be fined under this title or imprisoned not more than five years, or both.

(2) ''gambling'' includes but is not limited to pool-selling, bookmaking, maintaining slot machines, roulette wheels or dice tables, and conducting lotteries, policy, bolita or numbers games, or selling chances therein.

Section 1952 of Title 18, United States Code, which is also referred to as the Travel Act, also proscribes interstate gambling activity by stating:

''... the use of any facility in interstate or foreign commerce, including the mail, with intent to (1) distribute the records of any unlawful activity ... or (3) otherwise promote, manage, establish carry on or facilitate the promotion, management, establishment or carrying on, of any unlawful activity ... shall be fined not more than $10,000 or imprisoned for not more than five years or both.''

The Organized Crime Control Act of 1970 was signed into law by President Richard Nixon. It prohibits the creation or management of a gambling organization involving 5 or more people, if it has been in business more than 30 days or accumulates $2000 in gross revenue in a single day. The Racketeer Influenced and Corrupt Organizations Act (RICO) is a United States federal law which provides for extended penalties for criminal acts performed as part of an ongoing criminal organization. RICO was enacted by section 901(a) of the Organized Crime Control Act of 1970, Pub. L. No. 91-452, 84 Stat. 922 (15 October 1970). RICO is codified as Chapter 96 of Title 18 of the United States Code, 18 U.S.C. § 1961 through 18 U.S.C. § 1968.

On July 11 2006 the Internet Gambling Prohibition and Enforcement Act, H.R. 4411 was approved by the House of Representatives today by 317 to 93 votes. To pass into law it will now need to be approved by the Senate and the President. The bill will make it illegal to use credit cards and fund transfers from banks to settle internet wagers and, it will update the Wire Act to specifically prohibit online gambling, allowing the authorities to work with Internet service providers to block access to online gambling web sites.

In addition to the statutory instruments, eight US states have laws that specifically prohibit Internet gambling: Washington, Nevada, Illinois, Indiana, Louisiana, South Dakota, Michigan and Oregon.


Article By: Betting Market