Whether you’re in New York or anywhere else in the country, there are various federal laws governing online gambling that you’ll want to know about. These laws include those that prohibit the conduct of Internet gambling, and they also include the Constitutional objections to prosecuting Internet operators for illegal gambling.
Federal criminal statutes implicated by illegal Internet gambling
Besides the obvious federal statutes like the Wire Act, the United States has several other tools in its toolbox to prosecute illegal gambling. There are also Money Laundering statutes that can be used to prosecute illegal gambling.
The Unlawful Internet Gambling Enforcement Act, or UIGEA, is a federal statute that prohibits the use of electronic funds transfers to pay for illegal gambling activities. The statute also prohibits the use of checks and credit cards. UIGEA carries with it a maximum penalty of five years in prison.
The Wire Act prohibits the use of interstate wires for the purpose of conducting a gambling business. If you break this law, you could face up to $250,000 in fines. The same statute also prohibits the use of money in an escrow account, which is one of the simplest forms of money laundering.
The Money Laundering statutes are found in Title 18, United States Code, and are applicable to any financial transaction to promote the activities of illegal activity. It’s not surprising that the law would apply to gambling. The law is also designed to help the government to better enforce the law against illegal gambling operations.
There are several federal statutes that are used to prosecute illegal Internet gambling. The most obvious is the UIGEA, which was passed by Congress in 2006. There is also the Money Laundering statutes found in Title 18, United States Code, which prohibit the laundering of money for an international activity, such as gambling.
Constitutional objections to prosecuting operators of illegal online gambling
Various state governments have thrown their weight into the online gambling arena. Some states, like Texas, have adopted laws limiting gambling at land-based casinos. Various state officials have also expressed concerns that the Internet could be used to introduce illegal gambling into their jurisdictions. The federal government has also been a part of the online gambling debate, defending state laws while also putting out the fire on the interstate.
One state, Connecticut, is arguably ahead of the curve. A recent bill allowing for online gambling at state-run casinos was signed into law by state governor Ned Lamont. Online casinos are licensed and regulated by the Connecticut Gaming Division, a state agency responsible for licensing and regulating gaming businesses in the state. The state has one legal casino, the Mohegan Sun Casino, and one legal online casino, the Mashantucket Pequot Interactive. Some argue that the state has the most legal gambling in the nation, a claim that is supported by the fact that the state allows gambling to be conducted on mobile devices. In addition to legalizing online casinos, Connecticut passed a law allowing for the use of a credit card to make online purchases. The state’s gambling industry is one of the most sophisticated in the country, but has also seen some problems with online gambling operators, particularly the ill-fated PlayMillion.
New York law on online gambling
Getting legalized online gambling in New York has taken a lot of twists and turns over the years. However, the road is moving forward and the process seems to be getting closer to being completed. The New York state government has approved nine gambling licenses, including three downstate locations, and it’s a good bet that they will be opening their doors soon.
According to state comptroller Thomas P. DiNapoli, the state is expecting to generate up to $1.2 billion in gambling revenue in the next few years. It’s also expected that there will be three to twelve thousand jobs created during that time.
New York has a long history of horse racing. Residents of the state can bet on live horse races, as well as on off-track horse races. In addition to that, residents can wager on the state lottery.
New York lawmakers have also been looking into the issue of responsible gambling. They hope that legal gambling will help filter out the illicit gambling industry. They’ve also proposed a number of bills, including one that would legalize online poker.
According to Pappas, the state’s governor is also evaluating the issue. He hopes to add legalized online gambling to the state’s 2023 state budget.
The New York State Gaming Commission will regulate online gambling. Its regulations will follow those for brick and mortar casinos.