US Online Gambling under Legal Perspective
There are many visions and perspectives on legalizing online gambling in the US and so far nothing consistent has been achieved.
The previous efforts made for legalizing online gambling in the US have all failed. Provided the delicate financial situation, the states are using the tax revenues from online gambling to balance budgets. Despite of the protest of social interest groups, the situation remains the same due to the existing measures of controlling problem and underage gambling. However the real problem is related to the federal laws and the effects of legalizing online gambling.
It seems that the problem is UIGEA provisions which prohibit financial transactions involving illegal online gambling, but there are different opinions on the topic. Staff Director of the Committee on Governmental Organization, in California State Senate, Arthur Terzakis believes that online gambling is legal, therefore UIGEA provisions don’t apply. This way online gambling can be legalized.
Mark Hichar a lawyer specialized in gambling at Edwards, Palmer&Dodge in Boston, points out that the bill is not meant to amend the law on the subject, therefore all the federal WireAct prohibitions still apply.
The issue has been taken up with the Department of Justice (DoJ), leading to action against the online operators. A similar measure had been applied under the Wire Act. This way it has been pointed out the illegality of financial transaction processing.
This has lead to reticence on moving forward for a few states. Provided that the Wire Act prohibits online gambling over telecommunication means, it is believed that this law will be bypassed. In response for the statements of these two senators, the Department of Justice has been asked to stop the efforts to legalize online gambling. According to Department of Justice, the letter is under consideration.
The fact that several US states are selling lottery tickets online is in favor of legalizing online gambling, because it is quite the same thing as playing casino games. According to Hichar, if the Department of Justice hasn’t taken any action doesn’t mean that it is a legal activity.