Online Casino for USA Players: The Real Deal About Legality Issues

Do you want to know the state of online casinos for USA players? We will try to give you a brief overview on the situation regarding online casinos for USA Players. It is better to know what the state of online casinos for USA players is rather than mess up with the law.

First off, the United States Court of Appeals 5th Circuit gave out a ruling in November 2002. The United States Court of Appeals ruled that in the Federal Wire Act, it has specifically been stated that the law prohibits electronic transmission of information for gambling, specifically sports betting. It does not matter what line you have (mobile, DSL, broadband), all telecommunications used for gambling is prohibited. The lower court gave out a ruling that states the way the US lower court reads the Federal Wire Act in plain language is basically prohibiting internet gambling or it does not allow the game of chance.

In the US, different states have different laws, so you would see states like Nevada that allows online gambling. Other states across the US have chosen to have specific laws which are against gambling on the Internet. It is also prohibited by the state law for individuals or a corporation to operate or be the owner of any kind of online casino or Internet-based gambling business. The actual law states that no operation of online gaming can be done unless there is an online gaming license issued by the state. And since no state has been granting online gaming licenses, the law is as good as prohibits any kind of operation in the US.

What the US is so adamant about in granting online casinos access from US American citizens is the fear of money laundering. The Deputy Assistant Attorney General John G. Malcolm went to testify in the Senate Banking Committee in 2003. In the hearing, he raised and voiced out the concern of the United States Department of Justice that online gambling can be used as a cover up for money laundering. It is actually the perfect set up for money laundering because of the anonymity that the Internet provides. With expert encryptions, the money trail can easily be covered up.

In 2004, search engine giants Google and Yahoo said they will not allow gambling ads on their site and have removed existing sites. This was to appease the US Justice Department.

In 2005, North Dakota’s congressman passed a bill that will regulate and legalize poker done online alongside other cardroom operators. Up till now, the court is contesting its efficacy and there is no decision yet regarding this matter.