From virtual poker to online lotteries, sports books, and racing forms, finding a place to gamble and something to bet on is easy for anyone with an laptop and internet connection. In most cases, the law is a long way behind the technology, making the industry difficult to regulate. As a result, the question of whether or not any given gambling site is legal rarely has a straight yes-or-no answer. And for those with gambling addictions, the temptation is as close as their home computer or smartphone.
Facts and Figures
The first online casinos showed up back in 1996, after the Caribbean nation of Antigua and Barbuda passed a law that permitted it to issue licenses to companies for online gaming. Combined with developments in gaming and security software and programming, secure transactions became a possibility and the online gambling industry was born.
Today, an estimated 15 million Americans play online poker, which is only one form of internet gambling. Total revenues from online casinos are estimated at $12 billion in 2005 and $15.2 billion in 2006. The industry is still growing; inn 2010, total online gambling revenues were $29.3 billion. Sports betting makes up about 41 percent of that; online casinos and poker sites make up 46 percent.
U.S. Gambling Law: Not a Sure Bet
In the U.S., gambling is generally regulated at the state level, which is why you can find slot machines in gas stations in Nevada but not in Vermont. Most states restrict gambling it to certain geographic areas, as is the case with Atlantic City, New Jersey, or on the water, as in parts of Mississippi. Additionally, Native American tribes, as sovereign nations, can open casinos.
None of these geographic restrictions apply to online casinos, however, which makes it difficult to figure out which laws may apply. One federal law thought to apply, the Interstate Wire Act of 1961, made it illegal for gambling business to use interstate or international telecommunications wires to knowingly transmit or receive bets. Initially the Wire Act was used to prosecute any online gambling based in the U.S., but the U.S. Court of Appeals recently ruled it could be applied only to online sports betting.
This move essentially legalized all other forms of internet gambling, which has led to predictions of an explosion in U.S. based online betting. Up until now, most online gambling sites have been registered outside the U.S., to sidestep any legal difficulties. But now states such as Nevada and Delaware are pushing to bring online gambling, with its massive revenue, instate.
Dangers of Gambling Online
With a potential increase in online gaming sites accessible to Americans comes an increase in the potential problems associated with internet gambling.
Security: There is no centralized regulation of internet gambling, and no government authority overseeing it. This has led to the rise of criminal activity, hacking, cheating, and deceptive practices. Bank account and credit card numbers are particularly vulnerable to hackers, and offshore-run internet casinos may not have the latest or best security technology. Some online casinos may use “poker bots” representing human players, programmed for optimal play and to drive up the betting amounts. And even if you do win, with the questionable legality of some of these sites, who do you complain to if you never receive your money?
Ease of access: Those prone to destructive and addictive gambling behaviors — that’s an estimated 6 million people in the U.S. alone — don’t need to leave their house to play. While someone in treatment for addiction might be able to avoid casinos and other gambling locations, it’s far more difficult to stay away from the Internet. Casinos can ban known problem gamblers, but there’s nothing stopping them from accessing any of the thousands of online gambling sites. It also tempts people who might not ever go to a casino — online poker is an increasing problem, for example, among college students. It’s also easier for underage gamblers to gain access to a gambling website than it would be for them to sneak into a casino.
No physical signs: Gambling has been called the “silent addiction” because it’s relatively easy to hide — no evidence on your breath as with alcohol, no health issues related to drugs. And while someone might notice if you spent three days straight in a casino, online gamblers can play at home, at work, and on their phones without anyone around them even being aware they are gambling. Experts are concerned that the prevalence of online gambling could make gambling addicts even harder to diagnose and treat.
Play money: Dealing with money on the internet can sometimes feel like spending Monopoly money — just ask anyone whose gotten caught up in an eBay bidding war. The likelihood of impulse betting and chasing losses is greater when access to your bank account and credit cards is just a mouseclick away, as opposed to physically having to withdraw money from an ATM.
Real consequences: It’s easy to rack up enormous debt online in a relatively short time, as many people have discovered. People lie and steal to hide the evidence of their addiction, and others have committed suicide rather than reveal the extent of their debt.
If you or someone you know has a problem with online gambling, there are a number of support organizations online, as well as software that blocks access to online gambling sites.
