Despite the presence of numerous online gambling sites, only a few states allow legal online casinos and sports betting. Illinois and Indiana may join the ranks in the coming years. In the meantime, state officials have expressed concerns about the potential of the internet to bring illegal gambling into their jurisdictions.
The most obvious thing to do in this situation is to regulate the activity. To that end, the United States has enacted the Wire Act, which prohibits illegal gambling on sporting events. The law also prohibits gambling on contests, like a lottery, or on games played on the internet.
The law also prohibits the use of financial instruments in illegal Internet bets. The law is enforced by the U.S. Marshals Service. The agency seized $3.2 million from Discovery Communications and threatened PayPal with prosecution.
The law also mandates the use of appropriate data security measures, such as encryption. It also requires that a gambling site have five or more people managing or operating it. It also requires the site to operate for at least two days in a row.
The law also mandates that a gambling site be licensed and operated by the state. In Illinois, only residents of the state can wager on sporting events. They cannot wager on in-state colleges or non-sporting events.
Another thing to consider is the Lopez Amendment. This statute was enacted to reduce the number of low-level gambling cases. It combines elements of the following three statutes: 31 U.S.C. 5362(10), the Travel Act, and the Illegal Gambling Business Act.
