Several states have laws that make it illegal to gamble on the Internet. Some states have banned gambling altogether. In other states, gambling is legal.
A study from Frost & Sullivan in 1998 showed that revenue from online gambling reached $830 million. In response to the growth of Internet gambling, Congress introduced the Internet Gambling Prohibition Act in 1999. Currently, the Act is a bill in the US Senate.
Although the federal government’s policy is not clear on what it intends to do, it has announced that the Wire Act will apply to all forms of Internet gambling. Critics of the move say it lacks legal basis.
The law also prohibits accepting financial instruments for illegal Internet bets. PayPal is one company that is under a cloud over the move. Federal prosecutors warned the company that it could face prosecution.
The act is intended to prevent the spread of illegal gambling, but there are other concerns. For example, it could allow foreign players to bet on sporting events and races without complying with state laws. In the meantime, there are a number of ways that states can protect themselves against gambling.
One of the more controversial provisions is Section 1956. This section creates several different crimes. It creates the crime of laundering, which is a form of laundering intended to conceal or disguise the source of the money. It also creates the crime of laundering with the intent of promoting an illicit activity.