Illegal Internet Gambling

Using the Internet for illegal gambling is a violation of seven federal criminal statutes. The UIGEA, Wire Act, Illegal Gambling Business Act, and Racketeer Influenced and Corrupt Organizations (RICO) provisions are specifically related to illegal gambling on the Internet. It is also illegal to receive or use financial instruments derived from illegal Internet bets.

The UIGEA prohibits anyone from knowingly making a financial transaction involving illegal Internet gambling. This includes the use of financial transaction providers, such as PayPal. However, it does not prohibit the use of credit card or electronic funds transfer services. If someone uses PayPal for illegal Internet gambling, he or she may be fined or imprisoned. The Wire Act prohibits gambling on sporting events. It also prohibits the use of contests to win money or prizes. It also prohibits the use of any device to receive bets, to place bets, or to receive money or prizes from a bet.

The Travel Act also prohibits illegal gambling on interstate commerce. It also prohibits the promotion of illegal gambling and the payment of gambling debts. It can be determined if a gambling business has a nexus to interstate or foreign commerce by reference to the telecommunications component of the Internet, the debts resulting from gambling, or the gambling debts themselves. The Federal Communications Commission can also prevent the furnishing or leasing of facilities or services.

Section 1956 of the Federal criminal code defines gambling as any act that involves the distribution of chances, lotteries, pools, bookmaking, or the sale or distribution of chances. It also includes the use of roulette wheels, video poker machines, and slot machines. It also creates several distinct crimes, including money laundering, concealing, and promoting the illicit use of money or other property. These crimes can be used to evade taxes and law enforcement stings. It also provides for the imposition of a fine and imprisonment of up to five years.

Section 1956 also creates the offense of laundering to conceal, disguise, or promote the illicit use of money or property. It prohibits the spending of more than $10,000 of illegal gambling proceeds on a single occasion. It also prohibits the laundering of illegal gambling proceeds to disguise and promote the illicit use of money or property. In addition, it creates the offense of laundering for international purposes, evading taxes, and law enforcement stings.

The Travel Act does not prohibit the use of state-run Internet gambling services. However, it does prohibit the promotion of illegal gambling and the promotion of gambling debts, and it prohibits the promotion of gambling to minors. The Federal Communications Commission has jurisdiction over common carriers and can discontinue the furnishing or leasing of facilities or services.

The Racketeer Influenced and Corruption Organizations (RICO) provisions prohibit the use of a gambling business to promote illegal gambling or the payment of gambling debts. They also prohibit the use of a gambling business to receive money from a person who engages in an illegal Internet gambling transaction. This is a federal offense that can result in fines and imprisonment of up to five years. The owner of an illegal gambling business may also be fined or imprisoned.