The Wire Act was enacted by Congress in 1961 to help thwart racketeering. The initial purpose of the act was to help states enforce their individual laws on gambling. It was also to help deter and suppress organized gambling rings. This attacked those involved with betting that use some type of wire communication to transfer bets or wagers or information dealing with gambling.
This means that gambling or betting, the transfer of money or credits or information cannot be conducted over the phone. The consequence of these actions is no more than two years in prison and/or a fine.
The Wire Act works in conjunction with numerous other federal bookmaking laws including:
- The Travel Act
- The Interstate Transportation of Wagering Paraphernalia Act
- The Illegal Gambling Business Act
The Travel Act makes interstate traveling to aid any type of racketeering or gambling illegal. The Interstate Transportation of Wagering Paraphernalia Act makes it illegal to move around any equipment related to placing wagers or any other type of gambling. Finally the Illegal Gambling Business Act makes it illegal to run of finance any type of gambling operation.
In order for the Government to have a case against an individual or group, there are a few points that must be established. For instance, the person in question must be engaged in the business of betting. Also, the individual must have transmitted within interstate or foreign commerce any wagers, information that leads to the placing of wagers or correspondence that gives the beneficiary money or credits based on those wagers.
click here to see most Popular PagesFurthermore, the individual must have used some type of wire communication or wire communication facility. Finally, they must have knowingly used wire communication to connect with another party.
This regulation was initially aimed at deterring and shutting down organized gambling halls. These were usually run by some type of crime syndicate. Therefore, the casual, social bettor does not fall under the jurisdiction of this act. Under further scrutiny, it’s also been mentioned that casual bettors who wager large sums of money but who show sophistication are also immune from the penalties of this regulation.
The Wire Act is certainly still used today and is a major reason as to why online casinos cannot be created within the borders of the United States. It is also the reason many well-known online casinos stopped accepting United States customers. This Act has been a major setback for land and internet casinos. These laws were created to protect the citizens of the United States and make for a better country.
