Using the Internet to gamble is an illegal activity. It is illegal under the Wire Act, the Illegal Gambling Business Act, and the UIGEA. In addition, it is illegal under the state laws of several states, including New Jersey, Connecticut, and New York. Those states have expressed concern that the Internet might be used to bring illegal gambling activities into their jurisdictions. In response, the federal government issued an advisory warning PayPal that it could face prosecution.
The Wire Act is the federal law that governs the illegal gambling on sporting events. It is also the federal law that governs the illegal gambling on the internet. The law is the only federal law regulating the gambling industry that isn’t state specific, though state governments may attempt to regulate it themselves. In fact, the state of New Jersey has already attempted to regulate online gambling.
One of the best examples of this was the recent seizure of $3.2 million from Discovery Communications for ads they accepted from an Internet gambling operation in Costa Rica. This was a large sum, but not one that many could argue was disproportionate. The reason for the seizure was that the company had knowingly made a series of illegal gambling transactions.
The most important thing to take away from the case is that the Federal Communications Commission (FCC) has jurisdiction over common carriers, which includes cable and internet providers. This means that it has the power to levy fines and suspend or revoke licenses. The FCC has also the power to stop granting facilities to providers, and may even cease leasing or furnishing facilities entirely. The FCC is the most powerful regulatory authority in the country. This power has prompted a number of state attorneys general to raise the curtain on the illegal gambling business, which could lead to more regulation. The FCC has also received the attention of state attorneys general for its power to monitor the Internet for criminal activity.
The FCC has also had to contend with the legality of the Internet as a communications medium, which includes a number of questions related to the appropriate security standards to be used for data transmission. There is also a legal question as to whether the FCC’s authority to levy fines is absolute, or whether it is limited to those cases where there is a legal basis to do so. Some state attorneys general have criticized the FCC for failing to adequately address these concerns. The FCC has also rebuffed state efforts to regulate the Internet for gambling. This has led to several court cases challenging state’s ability to regulate online gambling.
The most important question remains whether the FCC’s power to levy fines can be used to deter or discourage illegal gambling on the Internet. While the FCC may have some teeth, the federal government has a much broader set of teeth that it can wield to fight this fight. The Internet, in particular, can be a great tool for illegal gambling businesses to use to gain access to the US market, and it is up to the FCC to protect the public from criminal activity that can be perpetrated from a remote location.