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Legal
or Illegal
Welcome
to the legality section of our website. What follows does not represent a
definitive or comprehensive analysis of the subject, but it should give you
a broad picture in terms of the main legal issues associated with online
gambling. The information here has been divided into two parts: one for the
EU and the other for the US, as sharp differences exist between the two
regions. Furthermore, laws regarding online gambling can be quite unclear at
times. Quite naturally, it is important for all players, regardless of their
nationality, to be aware of the legal foundations of online gambling.
In the case of the EU, no legislation has been passed to outlaw online
gambling outright. In the US, for a long time attempts were made to
legislate against online gambling, but such attempts were generally made on
a state-by-state basis and they all focused on different laws and practices
regarding online gambling. Until recently, the activity was generally
considered a legal grey area (especially in the US). Recent anti-gambling US
legislation, however, has changed all of that.
In a nutshell, US legislation about online gambling is/was very unclear. We
used to say that the main point to remember is that no federal law exists
preventing US nationals from engaging in online gambling or any related
activity. Internet gambling ‘expert’ Professor I. Nelson Rose, explicitly
states that online gambling should be regarded as perfectly legal as “no
United States federal statute or regulation explicitly prohibits Internet
gambling, either domestically or abroad.” Reinforcing the argument,
estimates show that 70% of all online wagers are US-based, Americans account
for over 80% of online poker players and participate in more than 55% of the
proportion of internet gambling activities. It would seem quite extreme to
claim that all of those people are not respecting the law!
As for
the situation in US for the moment, it appears that the legislation's
reach is limited and the ability of US citizens to place bets at online
casinos and online poker rooms has only been 'changed' and not completely
taken away. Again, in keeping with its tradition, the issue falls into
another gray area despite the increased clarity of the law provided by the
Internet Gambling Enforcement Act. It's difficult to predict how effective
the law will be in preventing Americans from placing online wagers or
drastically curbing the popularity of the online gambling sector. As of now,
still no US citizen has been prosecuted for placing wagers online and the
law remains unclear in this respect. US players should, however, play at
their own risk and educate themselves as much as possible beforehand. While
many pundits and observers think the recent legislation will ultimately
follow the same path as Prohibition laws in the 30s (eventually
beoverturned) - and, the parallels are staggering - nothing is certain.
Whatever the case may be, the situation 'should' become increasingly clear
in 2007.
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