Federal Laws Governing Online Gambling
The enforcement of federal gambling laws has been challenged on several grounds, most notably the Commerce Clause, the First Amendment’s guarantee of free speech, and the Due Process Clause. These arguments have had limited success, however. Commerce Clause doubts are satisfied by the commercial nature of the gambling business, while free speech objections have been overshadowed by the limited protection provided by the First Amendment for crimes that facilitate speech. Moreover, the Due Process Clause argument is weakened when financial transactions are involved.
Under federal law, illegal internet gambling is prohibited. This prohibition applies to the placing, receiving, and transmitting of bets over the internet. It also applies to remote gaming services. These two laws were designed to protect consumers from illegal gambling in the United States. While the laws governing online gambling vary from state to state, they all share a common principle: internet gambling is illegal.