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The first federal legislation to pass after the advent of Internet was the Unlawful Internet Gaming and Enforcement Act UIGEA from 2006, which banned payments on all forms of gambling that were considered illegal under the 1961 Wire Act. A common belief is that the UIGEA made online gambling illegal when in actuality it only gave authority to enforce existing laws. The issue was clarified in late 2011 when the Justice Department confirmed conventional wisdom that had existed for nearly two decades by declaring that the Wire Act was only applicable to sports betting and not casino table games or poker. The 2011 decision effectively put the legality question on the shoulders of the states to license, regulate, and tax online US casinos and card rooms. Some states have laws on the books expressly prohibiting US online casinos; some do not.

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Author: Frank Biocca

Linkedin: Frank Biocca

Chair, Department of Informatics, Ying Wu College of Computing at New Jersey Institute of Technology.