The Legality of Online Gambling
Gambling is an activity where you try to win something of value by placing a wager. It involves three elements. Those are risk, prize, and strategy.
Gambling is legal in most countries of the European Union. However, there are several countries that restrict gambling or prohibit it entirely. In some cases, the state and federal government regulate the gambling industry.
In the US, the Federal Government has regulated gambling through the use of the Commerce Clause. The statutes have limited the types of games that can be played and the methods by which they are played. Some states have granted exemptions for certain forms of gambling.
For instance, Connecticut allowed online sports betting in 2021. Other states have passed legislation to allow it. Currently, twenty states allow residents to place sports bets on the Internet.
The Wire Act of 1961 regulated online gambling for the longest time. Until recently, Internet gambling was not allowed in the U.S. but the Department of Justice changed its interpretation of the Wire Act, deeming it to apply to all forms of Internet gambling.
Congress has also used its power under the Commerce Clause to regulate gambling on Native American land. As a result, many Indian reservations are prevented from regulating their own gambling activities.
While the US Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018, there are still several states that prohibit online gambling. Examples include Utah and Idaho.