Internet Gambling
January 22, 2008 by Joshua Auriemma
Let’s talk about internet gambling for a moment. You do know that it’s illegal in the US, right? I only ask because apparently a significant number of people that gamble online don’t realize that it is against the law (my ex-roommate, who was a compulsive online gambler, for instance).1
I sat through my cyberlaw class the other day where several students put forth the argument that online gambling should be legal because the user is “virtually sitting in” the jurisdiction where gambling is legal. That argument really baffles me.
Anybody that has been to a casino recently knows that a significant portion of the gambling is done on computers. Essentially, when you execute the code on your computer, you’re sitting in front of the exact same type of terminal that you would be sitting in front of in a casino. In essence, it’s tantamount to renting a “gambling terminal” from a casino, taking it home, and expecting to legally be able to cash in on your winnings by bringing it back to the casino when you’re done gambling.
Thoughts?
1 “Vince” brought to my attention 31 USCS § 5362(10), which definitely allows for some legal internet gambling. See my professor’s comments on this entry for an intelligent response.
Joshua Auriemma
Andrew Schnitzel
FYI…. Online Gambling was not made illegal!!!
Recognizing that online gambling itself is not illegal, and that the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) permits states to control gambling on the Internet within their own borders,
See one of many sources that address this.
http://www.pokerpages.com/poker-news/news/nevada-shelves-online-gambling-plans-for-now-based-on-survey-30285.htm
Thanks for bringing this to my attention! I read up on 31 USCS § 5362 and it looks like it can definitely be legal under the right circumstances.
Although I would not normally intrude on a student’s blog (keeping things compartmentalized) Josh essentially invited me to do so by alerting me to this discussion. So, here are my thoughts … Vince’s comment, although technically correct if parsed, attempts to prove too much. It seems unquestioned that Congress may, within its Commerce Clause power, regulate gambling (see, e.g., RS21984, report of the Congressional Research Service). The Department of Justice has made clear that using the Internet for interstate (or foregin) gambling is illegal under federal law, effectively shutting down all state efforts to permit the practice (and they are aggressively trying to shut down international sites). The only potential window for Internet gambling is the provision of gambling entirely intrastate — i.e., gambling sites located in Nevada and catering solely to Nevada residents. This indeed may be statutorily permitted under Section 5362. That said, this provision is aimed at certain traditionally protected activities (horseracing, etc.). Should any state pass a comprehensive intrastate gambling statute (permitting, e.g., a variety of casino games), the federal government would almost certainly respond with suffocating oversight and/or new or revised federal statutes eliminating this loophole. That is, I would suggest, precisely why Nevada isn’t taking this route. Such regulation (the regulation of intrastate gambling) would be almost certainly within Congress’s power under the Commerce Clause (even after Lopez, Morrison, and Gonzalez) because of its economic effect. This is why I find Vince’s comment “correct” (if parsed the right way) but relatively unhelpful. Interstate internet gambling is not allowed under federal law. No state (that I know of) permits intrastate internet casino-type gambling. As such, until a state passes that law (and in the unlikely case that the feds do not strike back), I don’t see how internet gambling is legal. Thoughts??
does all internet gambling are illegal? because we create platform for ADW advance wagering deposit…. for parimutuel betting… well’ our company do not engage on the actual betting we just create the platform… bec. we are as software developer. as far as i know they abide legal stuff… just like brisbet and twinspire….
http://www.kanati.com.ph
Great discussion!