Legal minds turned to Internet gambling laws as a specialty when the industry went beyond growth and exploded into the public mind. “The law surrounding Internet gambling in the United States has been murky, to say the least,” according to Lawrence G. Walters, one of the attorneys working with gameattorneys.com.
In contrast, Internet gambling laws in the U.K. have made the lives of providers and players a bit easier. The passage of the Gambling Act of 2005 has basically legalized and regulated online play in the U.K.
With the objectives of keeping gambling from promoting “crime or disorder” the U.K. act attempts to keep gambling fair, in addition to protecting younger citizens and others who may be victimized by gambling operation. Unlike the United States, which still clings to the 1961 Wire Wager Act, the U.K. significantly relaxed regulations that are decades old. A gambling commission was established to enforce the code and license operators.
A Whole Other Country
According to Walters and many other observers of the Internet gambling laws scene, the United States Department of Justice continues to view all gambling on the Internet as illegal under the Wire Act. But there are details in the federal law that defy attempts to throw a blanket over all online gambling.
The Wire Wager Act forms the basis for federal action on Internet gambling laws in the United States. The law was meant to complement and support laws in the various states, focusing primarily on “being engaged in the business of betting or wagering” using wire communication to place bets or wagers on sporting events or similar contests. The law also comments on receiving money or credit that results from such a wager. The keys are “business,” “money or credit” and “wire communication facility.”
But as many attorneys and proponents of fair Internet gambling laws emphasize, the federal law does not specifically address other forms of gambling. This has left the law open to interpretation when it comes to online casinos specifically and using the World Wide Web to play online games.
October 13, 2006 is a crucial date in the controversy surrounding the legalization of gambling. For anyone wishing to understand Internet gambling laws, the federal law passed on that day is essential knowledge. President George W. Bush signed the Unlawful Internet Gambling Enforcement Act (UIGEA), which is intended to limit some “financial transactions” used for online gambling.
But even if current federal gambling laws can clearly define something as simple as a legal gambling age, the newer UIGEA has not settled all the dust raised around the issue of online gambling. Attorneys such as Walters (and many others) have pointed out that the UIGEA seems to refer only to financial transactions and wagers that are illegal where the wager or transaction is made. Some wagers may be legal while others may not be legal. It’s as simple as that.
The UIGEA had some effect on Internet gambling, in that many successful companies got out of the business, at least in the United States. In fact, with the passage of the law in 2006, most U.S. online players found they could not play at an online casino or poker room, for a short time. Many of the gambling providers found ways to establish offices and servers outside of the U.S. so that could invite United States players back in.