Online Gambling Laws


Several countries allow online gambling, although it is illegal in the United Kingdom. Gambling is the game of chance or skill for money or other valuable items. Typically, the winnings are deposited into the account of the user. Most online casinos require the user to register, requiring personal information. Some sites offer free play to get the visitor to sign up.

Online gambling has become the fastest growing industry in the world. The gross win of the gambling market was $400 billion in 2015. The number of Internet gamblers grew from 15 websites in 1996 to over 200 by 1997. In 2001, the number of players surpassed eight million. The largest portion of the Internet gambling industry is sports book betting. This type of wagering accounts for approximately one-third of the total Internet gambling market.

In the US, the Wire Act of 1961, a law enacted by President John F. Kennedy, prohibits the use of telephone lines to conduct sports betting. It also prohibits the transmission of information assisting in the conduct of sports betting. Despite the fact that the Internet was not yet a legal medium when the Wire Act was passed, the Department of Justice determined that the act applied to all forms of Internet gambling.

During the 1990s, legislation was drafted to regulate online gambling. In 1998, online casino games accounted for nearly 25% of the online gambling market. These Internet casinos are web-based platforms that host all of the games and allow the player to place bets. Some online gambling sites require the user to download software to access the site. Others have high-tech software that allows the player to place bets in virtual reality. Most online gambling sites require the user to wager two to three times the amount of their initial deposit.

As the number of Internet gamblers grew, the federal government began to consider laws regulating online gambling. Initially, the Justice Department outlined its views on advertising for online gambling outfits. It argued that advertising for these gambling sites could be considered an aid and abettor. This stance was later challenged in court. The case of Carruthers v. Antigua and Barbuda, a plaintiff in the United States v. Jay Cohen, was ruled in favor of the American. The judge presiding over the case stated that the WTO ruling could be used as a defense.

The WTO ruled in 2004 against the United States. During this time, the European Union considered filing a complaint with the WTO. It is a multinational trading organization that sets trading agreements between members. In addition, the organization carries out enforcement of the trading agreements. It convened a panel to examine U.S. laws regarding online gambling. In 2004, the panel found the United States in violation of international trade agreements.

Currently, the United States is the only country that does not permit residents to legally bet on sporting events through the Internet. Twenty-one states have legalized poker and horse racing betting, while a few other states have prohibited online gambling. Many other countries, including the Caribbean, have permitted online gambling. However, the legality of internet gaming remains uncertain.