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Is Online Gambling Legal?
Before joining up with an online casino, bookmaker, or poker room, it is wise to examine the legal aspects of becoming a player. Find out how gambling law affects players in different locations and which places have been known to be contentiously debated hot-spots for online gambling legislation.
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Legality
While it’s true that online gambling is a legally accepted form of entertainment in most countries around the globe, it also holds true that it is still an evolving industry. A handful of countries, either with state-run gambling monopolies or those that have yet to iron out the particulars of regulation and taxation, have taken a drastic and often unpopular approach of disallowing online gambling for their citizens. If unsure about the legality of placing bets through the internet, it's always a good idea to first check with local authorities to determine whether or not that activity is lawful for a particular jurisdiction.
Online Gambling in the United States
The United States has been a sort of hot-button topic regarding the legality of online gambling since the industry began, due mainly to the sheer volume of revenue generated by its residents. Prior to the U.I.G.E.A. (Unlawful Internet Gaming Enforcement Act) of 2006, US residents accounted for nearly 80% of online gambling revenue – a percentage which dropped sharply after many i-gaming companies began closing their doors to US bettors once the U.I.G.E.A. became law.
In the years following the drop, online gambling revenue has been on the rise, as more and more US citizens are choosing to play poker and casino games online – whether the legality of which has been clearly defined or not. The biggest obstacle to US citizens being able to play, besides the lack of operators catering to the market, has been the availability of banking options. Companies such as Neteller, one of the largest payment processors for online gamblers, was chased out of the U.S. market by the Department of Justice on grounds that they were violating the U.I.G.E.A. by facilitating safe and secure payment transfers between U.S. bettors and gambling operators. In effect, the U.S. Government has removed proven and reputable companies from the market, while smaller, and potentially unregulated outfits continue to operate. Some people have suggested that these actions are primarily about money, and state legislators aren't interested in seeing any of their constituents' gambling dollars leave the country - a position which violates the NAFTA free trade agreement and has ired countries with small market economies tied to online gambling, such as Antigua.
More recently, prominent members within the U.S. government have taken a proactive approach to exploring the regulation and taxation possibilities of online gambling, which has huge revenue-generating implications and would likely help to ensure even greater security and fairness for players.
These positive steps towards regulation and eventual taxation have not been without considerable opposition. Numerous issues first need to be ironed out on a state-by-state level, as almost all U.S. states already allow legal forms of gambling, such as lottery, horse racing, keno, and casino gambling, and many of the laws differ by location. Opposition has also arisen by government entities such as the Department Of Justice, which in 2007 seized over $50 million from online payment processor Neteller, who until that time had been a leading e-wallet for U.S. players, and again in 2011 when the domain seizure of three of the top internet poker sites, which had been allowing U.S. players. While this upset a great number of players, as online poker is immensely popular in the United States, one can only remain optimistic that the legal wranglings of today may lead toward a regulatory framework and safe playing environment in the future.
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