60 minutes:online gambling

[tombomb]

Anybody catch that show yesterday? I wasnt aware that it is illegal to gamble online in the U.S.Can a person residing in the U.S. expect to be prosecuted in the near or distant future for playing online?Anyone know of anyone who has been?I would like to hear opinions on that from the moderators or Casinomeister or anyone else for that matter.

[JohnGalt]

The justice department says it is illegal but that it will not seek to enforce the law against gamblers in the United States (i.e. it would prosecute the casino if possible, but it will not bother with customers). However, there is no law against it. The law they rely on is I believe the wire fraud act. It has never been tested in court and likely would not hold up as prohibiting gambling at online casinos. So bottom line is, you're safe. May or may not be illegal, many think not.

[webber286]

I thought that was an interesting piece, and very pro-online gambling. I'm not so sure about where they start out by saying "The federal government is clear: gambling on the Internet is against the law." Especially when they are referring to the Wire Act that makes phoning in a sportsbet illegal. That is the only federal law on the books. The Feds want people to believe it is illegal when in fact it is expressly so.

States have actually taken a stance against the Feds by wanting the right to say wether online gambling is legal or illegal for their citizens. South Dakota almost passed a bill that would have allowed them to regulate online poker rooms (until the Feds came down on them, and promised to make life difficult). Then there are states like Indiana and Utah that expressly prohibit their citizens from playing online. It seems like there could be a states right's battle before anything could be passed one way or the other.

Of course it all comes down to prosecution, and that becomes very difficult when over 12 million Americans are gambling online. It's not like Napster where you can force the service to show their domain records to catch individuals. I'm not aware of any individuals being prosecuted in the States for gambling online. A few for running gambling sites, but it is clear that is illegal.

Here's a link to the article for those who missed the airing:
http://www.cbsnews.com/stories/2005/...n1052420.shtml

[jetset]

US law on online gambling is far from clear, although the Department of Justice keeps asserting that online gambling is illegal under the Wire Act (which others argue applies only to sportsbooks) but has yet to fully test that opinion in an online casino sense.

The Wire Act is antiquated in today's terms, but every time the politicians try to update it, or introduce alternative anti-online gaming legislation it bogs down in a sea of vested interests and contrary opinions.

Long may it do so until someone sees the logic in regulating it properly in the USA, hopefully in the process ridding the industry in large measure from small offshore arm-chancers and making the formal presence of major and responsible online gambling companies on American soil possible.

I thought Terry Lanni's comments in the program were very valid. As a major US terrestrial operation he would like to get online with a clear legal and regulated mandate. I'll bet most of the others would, too.

This industry still has tremendous scope for growth, and regulated operations in the USA can only have a positive impact imo.

[Casinomeister]

US law on online gambling is far from clear, although the Department of Justice keeps asserting that online gambling is illegal under the Wire Act (which others argue applies only to sportsbooks) but has yet to fully test that opinion in an online casino sense.

The Justice Department needs to get out and let the individual states determine what is lawful/unlawful for their constituents. I've just received a copy of this month's IGWB magazine (International Gambling and Wagering Business) and it provides a breakdown on what is allowed in the US by state:

Charitable Bingo - 47 states
Charitable Games - 40 states
Card Rooms - 13 states
Casinos and Gaming - 15 states
Indian Casinos - 24 states
Sports Betting - 4 states

This doesn't include lotteries which are allowed in 41 states

By the way, for parimutuel wagering - telephone wagering is allowed in CA, Conn, Idaho, KY, LA, NV, NH, NJ, NY, ND, OR, Penn.,VA and WY

But the US Justice department says that gambling online is illegal? So it's no wonder that the US population is getting mixed signals.

I agree 110% that online gaming needs to be regulated in the states, but I don't see it happening anytime soon. There are too many self interests at stake, and the conservatives equate online gaming with Osama.

What is interesting, is that prohibiting online gaming in the US is a common ground for the far right and far left. The far right feel that gambling is morally wrong (baaad, baaad gambling - but their churches host Bingo), and the far left feel that people are too stupid to make decisions on their own. They need the government to protect them from themselves.

Funny how these politicians hype the fact that a teenager with daddy's credit card can try to get online. What about Vegas? No one will stop a 20 year old from sitting at a slot machine. It's only when they hit a jackpot that they check their IDs.

Again good points made - to regulate means to control and/or eliminate what is considered negative in this industry.

[Slotmachine]

Charitable Games - 40 states

What is interesting, is that prohibiting online gaming in the US is a common ground for the far right and far left. The far right feel that gambling is morally wrong (baaad, baaad gambling - but their churches host Bingo), and the far left feel that people are too stupid to make decisions on their own. They need the government to protect them from themselves.

Funny how it does not matter which views they hold, right or left, christian or muslim - the extremists end up thinking the same. Kill, kill, ban, ban, regulate, regulate.... "Far" anything is akin to idiocy.

If and when they legalize online gambling in the U.S., it'll be interesting to see what happens to the present operators all over the world (Gibraltar, Antigua, Kahnawake...) when the big-time U.S. players with their megabucks take over the business. Food for thought if you're thinking of buying online casino stock right now.....

Cheers,
SM

[Johnny Casino]

why not OK it can cash in on the tax revenue? I never understood why Australia didnt give it the nod for that very reason.

[schnozzy]

Isn't why not make it legal to play, but why not make it legal to host online casinos.

I think there are some Vegas properties that could make a mint with a co-branded casino. And us players could get combined online/real-life comps!

[maxfalcon]

If and when they legalize online gambling in the U.S., it'll be interesting to see what happens to the present operators all over the world (Gibraltar, Antigua, Kahnawake...) when the big-time U.S. players with their megabucks take over the business. Food for thought if you're thinking of buying online casino stock right now.....

IMO, it will hard for them to penetrate the market, even with their megabucks. Players are now familiar with certain type of games and online operators. The internet is really a particular business, in every sector possible, they will be obliged to match with the current (or futur established) state of things. But they will take a large chunk in the market share... or will expand it and create business!

However, there will be a lot of changes in the industry if it happens, that's sure, and as this industry is already very dynamic, that promises so great, animated and busy days for the futur!

If I would be a small/medium online casino operator actually, I would be happy to see things keep running the same way for a long time... even with all the current fog around legality and possible problems with justice.

[mary]

I saw an ad last night on tv for a laptop with a fingerprint scanner built right in for biometric security. It's only a matter of time before the "junior with the family credit card" scenario is no longer at all valid.