Using the internet to conduct illegal gambling is a crime under both state and federal law. The Wire Act, for example, prohibits online gambling on sports contests. There are also a number of other federal statutes that may have a bearing on illegal gambling on the Internet.
Several of these have been the subject of constitutional challenge. Some attacks on these statutes have been successful, while others have had only a minor effect.
One notable statute is the Travel Act, which prohibits the facilitation of illegal gambling on interstate commerce. Aside from prohibiting promotion of such gambling, the Travel Act also forbids transporting or facilitating illegal gambling. This is because there is a risk that the Internet could be used to transport illegal gambling into a state’s jurisdiction.
The Travel Act also prohibits money laundering, which is another statute that can have a major impact on an illegal gambling case. Money laundering is a crime that evades taxes and conceals the illegal gambling activity.
The Travel Act also prohibits the dissemination of “fake news” about gambling. There are a number of ways to accomplish this. One way is to provide a “false” story about the Internet’s capabilities. Other methods include sending out “false” e-mails, posting false web pages, or delivering false news on television.
The other aforementioned law is the Unlawful Internet Gambling Enforcement Act (UIGEA). The UIGEA prohibits payment for illegal Internet gambling. A licensed gambling site is required to provide randomized, fair betting odds.