Using the Internet for unlawful gambling is illegal under seven federal criminal statutes. These include the Wire Act, the Illegal Gambling Business Act, and the Racketeer Influenced and Corrupt Organizations (RICO) Act. These statutes also prevent financial transaction providers from accepting payments from illegal Internet bets.
The United States Justice Department has prosecuted several cases against illegal Internet gamblers. These cases include United States v. Nicolaou, United States v. Grey, United States v. O’Brien, United States v. Heacock, and United States v. Mick.
The first online gambling venue for the general public was the Liechtenstein International Lottery. This case involved five individuals who bet on games on their computers on a regular basis. The Liechtenstein International Lottery also agreed to pay a $4.2 million fine and launch a $3 million public service campaign.
The Travel Act is another federal law that prohibits facilitating illegal gambling on the Internet. The Travel Act also prohibits money laundering and promoting unlawful gambling. The jurisdiction of the Travel Act can be determined by reference to shipments in interstate or foreign commerce, a nexus to debts resulting from gambling, or an interstate or foreign nexus to the distribution of gambling proceeds.
In addition, the Federal Communications Commission has jurisdiction over common carriers and telecommunications facilities. The Commission may suspend the leasing of such facilities, or may stop the furnishing of such facilities.
The Indian Gaming Regulatory Act also regulates gambling on Indian land. Several state officials have expressed concerns that the Internet can facilitate the introduction of illegal gambling into their jurisdictions.