If you are an avid online gambling fan that’s concerned about the recent player account seizures, or alternately if you’re afraid to play online because you’re not sure if it’s legal, then you’ve probably spent some time pondering the title question. Is online gambling really illegal in the United States? Surprisingly, there is no easy or obvious answer.
The Unlawful Internet Gambling Enforcement Act
UIGEA was passed in 2006 as part of the SAFE Port Act. The very name of this law implies that gambling is illegal in the United States, and yet even the UIGEA is somewhat vague about the country’s stance on online gambling as a whole. That’s because the UIGEA only specifically regulates American financial institutions’ involvement with online gambling; it does not address player limitations.
To date, no American players have been arrested for gambling online. In fact, most U.S. poker pros are open about how much money they earn playing online poker. The catch is that any American player caught transferring online gaming funds through their bank account could lose that money permanently to the U.S. government (and even some states).
Currently there are several bills circulating through the upper levels of the U.S. government that aim to regulate and legalize online gambling, but even as they are being considered other departments continue to seize online gambling funds. Oddly enough, while some officials work hard to discourage participation at online casinos and poker rooms, other forms of online gambling like off-track horse race betting are patently legal. Likewise it is legal to place bets via online sportsbooks based out of some states.
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There is currently no legislation that prohibits Americans from playing real-money casino games online. What is illegal is transferring online gambling funds through American banks. Because the United States has legally pursued not only the banks that have ignored these laws but the online casinos, sportsbooks and poker rooms too many gambling sites no longer offer their services to American players. That said, many other casinos target their sites to an American crowd.
It’s a confused topic that many gambling industry insiders believe may be solved within the year. In fact, late in 2009 the implementation of the UIGEA was pushed back an additional six months while Congress considers the pros and cons of legalizing the practice of online gambling instead of banning it.
