Please spend some time this week browsing, watching, and/or playing a form of online gambling.   Please do NOT use sports betting websites.   The following link will direct you to several online casinos that have been deemed trustworthy by the gaming industry: http://www.honest-casinos.com/

Alternatively, here is a link to one of the most reputable online casinos: http://www.intercasino.net/

BACKGROUND

States are generally allowed to regulate what types of gaming occur within state lines.   This chart shows the current laws in each of the states.   Take a quick look at the gambling laws in the state where you are from by clicking on the state name.
http://www.gambling-law-us.com/State-Law-Summary/

Wire Act (1961) (U.S. Code Title 18, § 1084 (a))
http://www4.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00001084----000-.html

" Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both."

Travel Act (1961) (U.S. Code Title 18, § 1952)
http://www4.law.cornell.edu/uscode/18/1952.html

" (a) Whoever travels in interstate or foreign commerce or uses the mail or any facility in interstate or foreign commerce, with intent to--

  -- distribute the proceeds of any unlawful activity..."

In 2002, in response to a request by a congressional committee, the GAO compiled a report on some of the various structural and legal issues surrounding gambling on the Internet.   It can be found here: http://www.gao.gov/new.item s/d0389.pdf    Please read pages 1-38 and 51-57.

THE CONFLICT

People of N.Y. v. World Interactive Gaming Corp., 714 N.Y.S.2d 844 (1999)
http://www.loundy.com/CASES/People_v_WIGC.html

In re Mastercard, 132 F. Supp. 2d 468 (E.D. La. 2001)
http://pub.bna.com/eclr/1321a.htm

The holding in the Mastercard litigation was appealed, and affirmed.   In re Mastercard Intern. Inc., 313 F.3d 257 (5th Cir. 2002). If you are interested in the reasoning behind the ruling, the Circuit decision can be found at: http://caselaw.lp.findlaw.com/data2/circs/5th/0130389p.pdf.   (optional)

Antigua and Barbados brought a WTO complaint against the United States challenging its gambling laws as a trade violation.  The WTO handed down a 138 page decision that can be easily found at the WTO site.   A brief overview of the proceedings in the news can be found by following these three links:

1. http://news.com.com/WTO+slams+U.S.+Net-gambling+ban/2100-1030_3-5658636.html
2. http://www.ictsd.org/weekly/05-04-13/story2.htm
3. http://www.offshoregamblingnews.com/archives/offshore-gambling/2006/03/18/antigua-blasts-us-over-new-internet-gambling-laws/

THE FUTURE

Adrian Parke & Mark Griffiths, Why Gaming Legislation Will Ultimately Fail, 8 Gaming Law Review 5, 295 (Oct. 2004). http://www.liebertonline.com/doi/pdf/10.1089/glr.2004.8.295

The newest attempt by the House to regulate internet gambling is in the form of HR 4477, the Internet Gambling Prohibition Act (now H.R. 4411).   This link is to a webcast of the debate surrounding the bill.   It is an hour long, and thus is purely optional. http://judiciary.house.gov/hearings.aspx?ID=137  (optional)

The text of the proposed Regulation can be found at: http://thomas.loc.gov/cgi-bin/query/z?c109:H.R.4411:    Please read § 102 .

Recently, US authorities have begun enforcing these laws, and several major arrests have been made.   One example can be found at:
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/17/AR2006071701599.html

Questions:

After doing the readings, here are a few questions to think about:

1. The Wire Act was passed in 1961, long before the computer age.   Thus far, it has been the primary weapon against Internet gambling.   Will the government's proposed alteration of the wire act under HR 4411 be effective?


1. This question may be illustrative of a more general query into law governing unforeseen technologies.   As we continue to develop as a technological society, is it possible for legislatures to develop enough foresight to escape the onerous duty of redrafting bills every decade?
2. Why does the government feel compelled to regulate or prohibit online gambling?   Is this really what the commerce clause was intended to battle?

3. HR 4411 seems to respond to a few of the points made in Parke and Griffith's article.   Are there other potential hurdles in the proposed regulation that the writers did not suggest?   That the legislature has failed to consider?
4. After being exposed to a small bit of Internet gambling, where do you stand on the issue?   Should it be federally regulated?   Prohibited?   Left alone?   Should States be allowed to decide?
5. Assuming that this resolution passes the Senate (where several have failed before), what are some of the problems with enforcement?

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