Las Vegas Sun – Charge up your iPhone, because online gambling is here.
Nevada and Delaware legalized in-state online gambling this year.
Laws in these two states start to bring into the open what has been a gray area in American law. The U.S. Justice Department long has insisted that the Wire Act of 1961 bans interstate gambling. And in 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, which was signed by President George W. Bush. It effectively banned financial institutions from handling any online gambling payments.
Ironically, both Bush and the majority in both houses of Congress were Republicans who otherwise put their bets on limited government.
But in 2011, U.S. Deputy Attorney General James Cole wrote, “The Department’s Office of Legal Counsel has analyzed the scope of the Wire Act … and concluded that it is limited only to sports betting.” This cut the cards for states to legalize non-sports online betting.
Even under the 2006 restrictions, online gambling has continued, according to a recent study by H2 Gambling Capital, a consulting and data firm. In 2012, global online gambling amounted to $36.3 billion. Of that, 11 percent, or about $4 billion, came from the United States.
Although technically illegal, such gambling still was possible because Americans use such work-arounds as foreign accounts and prepaid debit or credit cards.
H2 estimated that, with online gambling becoming legal, the U.S. total by 2017 could come in as high as $7.4 billion.
Restricting gambling in 2013 to physical locations seems as retrograde as limiting Amazon.com to selling only books.
Congress currently has legislation, H.R. 2666, the Internet Poker Freedom Act of 2013. Sponsored by Rep. Joe Barton, R-Texas, it would legalize online poker and regulate it within the new Office of Internet Poker Oversight, to be established in the Department of Commerce.
And H.R. 2282, the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013, is sponsored by Rep. Peter King, R-N.Y. It legalizes Internet gambling and regulates it through the Office of Internet Gambling Oversight, to be established in the Department of the Treasury.
“A common federal standard will ensure strong protections for consumers, protect against problem and underage gambling and make it easier for businesses, players, lawmakers and regulators to navigate and freely participate,” King said.
