Online Gambling USA Law
In short the USA legislation has always been and still is very unclear about the online gambling USA law. As stated, the important thing to keep in mind is that there is no such federal law that prevents USA citizens from getting into any form of online gambling. Even after the UIGEA was passed, this case still remains the same. Online gambling specialist, Professor I. Nelson Rose, clearly states that online gambling should be considered as legal as there is no United States federal law or regulation that prohibits online gambling, either nationally or internationally. Supporting the argument, estimates reveal that 70% of all online wagers are USA based and that American accounts for over 80% of online poker gamblers. It would seem inappropriate to claim that all these people are not abiding by the law! How do you prosecute millions of people for being gamblers? This is why so many people think this law is a scam… and a way for a specific few to control one of the biggest industries in the world.
Various State gambling laws on online gambling activities can affect USA citizens who try to play, and there have been attempts to restrict the activity at a federal level - most remarkably the Internet Gambling Enforcement Act of 2006 (H.R. 4411). In the past, online gambling was not a problem in the culture of American legislation as it all depends, and still does, on the respective state in which a player resides. Nevada, Louisiana, Michigan and Illinois currently forbid online gambling, and many other state legislatures want to also introduce such legislation. California, Massachusetts, South Dakota, and Utah prohibit certain types of online gambling while allowing other activities.
Besides, many states forbid online gambling in order to protect the land based casinos in their respective states. How selfish, I bet the land based casinos sponsor many legislators. The reason is that, due to the absence of online gambling sites in the USA, there is no way for the state or federal government to tax them. This was the case recently, when the Commonwealth of Kentucky seized around 141 gambling sites insisting that their owners block Kentucky residents from using them. But at the core matter, is the desire to keep the money in the USA, and therefore be able to draw on a rewarding and taxable industry. Even Governor Steve Beshear, in the Kentucky case, declared that this was so; not to mention that he supports making land-based casino gambling lawful in the state and would essentially want to protect them and Kentucky's horseracing industry from online competition.
Kentucky's State actions are mainly based on the UIGEA's vague definition of what constitutes illegal gambling online. It must be noted, however, that major loopholes can be recognized within the law, which in reality, do not stop local operators from accepting bets online while complying with the laws of the state. As USA citizens generally take part in online casinos that are legalized, it seems highly unlikely that state governments or the federal government would ever be able to get hold of a complete legal framework allowing the prohibition of online gambling, as well as the prosecutions of the operators.