Having an online gambling business can be a great opportunity to earn money. However, there are a number of legal issues that must be addressed to ensure that your online gambling business is not illegal.
The first step in finding out if your betting business is legal is to investigate the legality of gambling in your state. This can help you determine where to set up your business. The Federal Communications Commission is one regulatory body that can potentially cut off facilities that are used for gambling.
The Federal Wire Act is another law that prohibits illegal gambling on sports events, contests, and other activities. In the case of online gambling, the law imposes penalties on those who receive bets or transmit bets over the Internet. The law also prohibits the use of financial instruments to make Internet bets.
Other legal issues that relate to online gambling include Racketeer Influenced and Corrupt Organizations (RICO) provisions that prohibit illegal gambling business activity. There are also seven federal criminal statutes that are implicated.
The UIGEA, or Unlawful Internet Gambling Enforcement Act, is another statute that is relevant to your online gambling business. This statute has been the subject of many lawsuits. These cases have raised constitutional questions as to whether the statute is valid.
The Commerce Clause has also been an issue. Those who argue that this Clause grants legislative power to regulate interstate commerce have had little success. Those who argue that the First Amendment protects free speech have been met with resistance.