In the United States, online gambling is considered illegal under federal law. However, the issue of online gambling is largely a state matter, and federal law merely reinforces state law. However, state officials have expressed concern about the potential use of the Internet for illegal gambling. The United States Government Accountability Office, or GAO, has issued a report on Internet gambling issues.
The United States is currently regulating this commercial activity with the Lopez Amendment, a law passed by Congress to regulate interstate commerce. This act prohibits gambling companies from accepting financial instruments from individuals engaged in illegal Internet gambling. While the Act does not specifically prohibit online gambling, it does require that companies adhere to certain standards.
There are many reasons why online gambling is illegal. First, it involves wagering on sports events and contests. Additionally, it is a violation of the Wire Act. In addition, under the Travel Act, a person cannot engage in interstate commerce with an illegal gambling organization. This makes online gambling a serious offense.
Second, it is illegal to own and operate an illegal gambling business. There are strict rules and fines for violating the law. Businesses that operate without a license can be closed down by the government and fined up to five years.