Is Online Gambling Legal In The USA?

The most popular thing related to online gambling is that of the misconceptions. Online gambling is one of the more confusing industries on the Internet, but this is because popular belief is ignorant. The question of legal online gambling is put forth so often that it is nearly impossible to answer.

Well, is going to try our best to clear up the myths and expose what is actually the reality of gambling on the Internet.

One thing we can tell you is that these games are not specifically banned, and you will not be faced with the trouble that is assumed to come from gambling over the Internet The simple truth is that you do not have to worry about the law unless you are actually trying to establish your own gambling site.

Online Gambling Laws In The U.S.

The federal government has made no real law pertaining to playing these games online. Frankly it is almost unconstitutional for the federal government to to establish a law that would actually make it a crime for you to gamble online.

The feds have however managed to pass the Wire Act to prevent organized crime, as well as the Unlawful Internet Gambling Enforcement Act, which has been written to prevent certain financial transactions rather than to actually outlaw online gambling.

These laws are still kind of confusing, as the government has applied the Wire Act to cover online sportsbooks, and the name of the UIGEA implies that online gambling has been made illegal.

The sad part is is that the UIGEA barely passed. Legislators had worked hard for many years to prevent online gambling from becoming illegal, but the Bush Era legislators managed to pass the Unlawful Internet Gambling Enforcement Act.

The law was passed as part of a bill that strengthened port security, which, considering the climate of national defense in the country at that time, passed without opposition.

Unfortunately, the UIGEA had caused a stigma against online gambling and helped to complicate the whole industry.

Will You Get Into Trouble For Gambling Online?

To date it has even lead to charges of money laundering against various online gambling operators, but one thing remains clear - no player has to fear getting arrested for gambling on the Internet, despite the scary name held by the Unlawful Internet Gambling Enforcement Act.

Even though the UIGEA has become a bigger flop since the prohibition of alcohol, there had been a few court cases and challenges against it. The group known as iMEGA had challenged the validity of the law, as well as its constitutionality.

In the end, it was determined that each state could choose whether or not online gambling is legal or illegal in each particular state. And so far, a few have gone as far to approve it. As of 2013, three states, Nevada, New Jersey and Delaware, have approved for the legalization and regulation of online gaming.

Outside of those, only a small handful of states have made it a crime for players to participate in these games. Though no state that has not actually criminalized online gambling or not regulated this form of gambling, subsequently leaves the industry on the whole in something of a grey area when it comes to gambling on the Internet - the lack of authorization has confused most players attempting to gamble.

What's The Bottom Line?

Should you decide to gamble over the Internet, you really don't need to worry too much about the law.

In spite of the fact that authorities have been making it their goal to prevent the online gambling industry, players wager tens of millions of dollars every year. And since these games are not authorized by the government, taxes are not being collected on this money, even if a large amount of cash is being spent.

While players are supposed to pay taxes on their winnings, most of the money generated in taxes would come from the gambling sites themselves (if regulated), rather than players paying taxes on their winnings. Regardless of anything, it is unlikely that you have anything to worry about when it comes to gambling online, as this is not a criminal activity on a federal level and you will likely not be prosectued for gambling online (as long as you are the user and the not operator) for playing games, betting, or whatever.

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