Whether online gambling is legal or not varies by state. However, in general, there are several federal statutes that are implicated by illegal Internet gambling.
First Amendment objections have been raised regarding the enforceability of federal gambling laws. Questions regarding legislative power under the Commerce Clause have also been raised. However, these attacks have been ineffective so far.
The Online Gambling Regulation Act, or OGRA, was passed in 2001. This act defines illegal Internet gambling as receiving bets or transmitting them via the Internet. The law also prohibits gambling businesses from accepting financial instruments from illegal Internet bets. The act is commonly abbreviated as “OGRA”. The Act also contains several provisions that prohibit gambling businesses from operating.
The Act provides that any person who operates a gambling business in the United States may be fined or imprisoned for up to five years. The owner of the illegal gambling business must have a gross revenue of at least $2,000 in any one day. The owner must also operate the business for at least two consecutive days.
The act also prohibits illegal gambling on sporting events. This includes games like lotteries and pools, as well as bookmaking and maintaining a roulette wheel. The Act also makes it illegal to operate or supervise an illegal gambling business.
The Act also bans money laundering and spending more than $10,000 in illegal gambling proceeds at one time. The Act also includes provisions against Racketeer Influenced and Corrupt Organizations (RICO).
The Act also prohibits gambling businesses from accepting financial instruments, as well as from providing telecommunications services. In addition, the Act also includes appropriate data security standards.