Almost half of the states in the United States now have legal online sports betting sites. This industry generated about one million dollars in revenue in its first month. The industry is expected to grow significantly in the next few years.
There are two primary issues with online gambling. First, it is a violation of federal law to operate an illegal gambling business. Second, it is illegal to bet illegally on Internet sports games. This is a complicated subject because there are seven federal criminal statutes that can be used to punish illegal gambling.
The Federal Wire Act prohibits illegal gambling on contests and sporting events. There are also statutes that prohibit money laundering of illegal gambling proceeds. Those laws also prohibit gambling on telecommunications services such as the Internet.
Other federal laws prohibiting illegal Internet gambling include the Gambling Devices Transportation Act (the Johnson Act) and the Illegal Gambling Business Act. This title also imposes a fine on those involved in illegal gambling businesses. The owners of these businesses can be fined up to five years in prison.
In addition, federal law prohibits gambling businesses from accepting payment for illegal Internet gambling. This is also prohibited under the Racketeer Influenced and Corrupt Organizations (RICO) provisions. In addition, federal law prohibits money laundering. The amount of money that can be spent on illegal gambling is limited to $10,000 at a time.
There are also cases that have been litigated based on the First Amendment guarantee of free speech. These cases have had limited success.