Is Online Gambling Legal?

According to the Wire Act, one is not permitted to make use of a wire transmission for the purpose of placing a bet. The Wire Act clearly states that "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."

While some may argue that the Wire Act pertains to all forms of gambling, others believe that it only refers to sports betting and wagering on sports events. Interpreting the Wire Act to mean that all forms of online gambling are illegal, many banks and financial institutions decided to block online gambling transactions that make use of credit cards. Other online financial services such as paypal.com ceased to process gambling related transactions and most of the major search engines such as yahoo.com and google.com stopped accepting gambling related advertisements.

Although the Department of Justice managed to put a significant dent in the advertising and banking operations of the online gambling industry in the United States, there are currently thousands of online gambling websites operating legally outside the U.S. Furthermore, since most of the online casinos accept numerous offline and online payment methods, one does not require a credit card to play at an online casino.

According the latest online gambling figures, most online casino players are from the United States, and the online gambling industry is continuing to grow at a phenomenal rate from 1.5 billion dollars in 2000 to a projected growth estimate of well over 10 billion dollars for the year 2005. In order for the Department of Justice to make a truly serious dent in the online gambling industry, they would need to convince foreign bodies such as the government of Antigua and Barbuda (a tiny country that processes 25% of online gambling transactions) that online gambling is illegal.

Taking the matter all the way to the World Trade Organisation, the tiny island of Antigua and Barbuda argued that the United States trade policy does not prohibit cross border gambling operations. It also argued that the U.S would be hypocritical to do otherwise since it wants to allow U.S. casinos to operate land-based and Internet-based units overseas.

Meanwhile, the United States argued that regulation was not a viable alternative for prohibition due to five major risks: underage gambling, compulsive gambling, money laundering, possible abuse by organized crime, and the risk of fraud.

On the 7th of April, 2005, the World Trade Organization ruled in favor of Antigua and Barbuda.

"The WTO has now found U.S. prohibitions on Internet gambling improper and discriminatory under global trade rules," Paulsen said. "This WTO ruling means the U.S. will need to regulate, rather than prohibit Internet gaming. It's clear that this will require Internet gaming companies seeking to do business with U.S. consumers to have adequate protections for consumers in place, to deal with such problems as the risk of underage gaming, fraud, and money laundering. The good news is that there are now solutions in the payment system to do just that." Kobus Paulsen, CEO of the UC Group, said on April 7, 2005.

Thus according to the World Trade Organisation, gambling at licensed online casinos and sportsbooks is not illegal. Rather than waging war against the online gambling industry, governmental bodies hostile to online gambling should work towards the regulation and taxation of the online gambling industry, while searching for possible solutions regarding the problems of underage gambling, compulsive gambling, money laundering, possible abuse by organized crime, and the risk of fraud.

Copyright © 2005 http://www.casinoguide.ws - Free Casino Cash Guide, All Rights Reserved.

This document may be freely redistributed in its unedited form and on the condition that all copyright references are kept intact along with the hyperlinked URLs.

---

Google News Updated : Sat, 06 Sep 2008 20:07:30 GMT "Bangkok" a skillful action excursion - Reuters E! Online "Bangkok" a skillful action excursion Reuters - 15 hours ago By Stephen Farber LOS ANGELES (Hollywood Reporter) - Everything is relative in the realm of hyperviolent movies, and compared to this summer's other assassination thriller, "Wanted," "Bangkok Dangerous" is a model of restraint and moral rectitude. 'Dangerous' prosperous at box office Variety An Assassin Arrives to Turn Off the Lights New York Times Boston Herald - Boston Globe - Roanoke Times - Buffalo News all 251 news articles Publ.Date : Sat, 06 Sep 2008 04:41:52 GMT Journals week in review: news from One Microsoft Way - Ars Technica Washington Post Journals week in review: news from One Microsoft Way Ars Technica - 1 hour ago By Emil Protalinski | Published: September 06, 2008 - 01:15PM CT First Gates-Seinfeld ad leaves us scratching our heads. The first Jerry Seinfeld and Bill Gates ad has arrived. Seinfeld ads only part of Microsoft push United Press International Windows Vista: The OS About Nothing InformationWeek New York Times - Slashdot - Apple Insider - CRN all 499 news articles Publ.Date : Sat, 06 Sep 2008 18:27:03 GMT Buckeyes survive Ohio's threat, 26-14 - The Associated Press The Associated Press Buckeyes survive Ohio's threat, 26-14 The Associated Press - 35 minutes ago COLUMBUS, Ohio (AP) - Beanie Wells didn't play. The Ohio Bobcats sure did. Lightly regarded even in the Mid-American Conference, Ohio put a scare into No. Ohio State Football: OSU 26, OU 14 The Plain Dealer - cleveland.com Posted by ESPN.com's Adam Rittenberg ESPN USA Today - Columbus Dispatch - Chillicothe Gazette - SBR Forum all 172 news articles Publ.Date : Sat, 06 Sep 2008 19:31:47 GMT Obama, McCain to Honor Victims of 9/11 Together - Voice of America ABC News Obama, McCain to Honor Victims of 9/11 Together Voice of America - 1 hour ago By VOA News US presidential candidates Democrat Barack Obama and Republican John McCain have agreed to appear together on September 11, the seventh anniversary of the terrorist attacks in New York and Washington. Conventions, Anything but Dull, Are a TV Hit New York Times Comment by John S. Baick Professor of History, Western New England College Newsday - CNN - Argus Press - Bloomberg all 4,236 news articles Publ.Date : Sat, 06 Sep 2008 19:01:14 GMT 'Wrestler' brings Venice fest to its feet - Hollywood Reporter Hollywood Reporter 'Wrestler' brings Venice fest to its feet Hollywood Reporter - 52 minutes ago By Eric J. Lyman VENICE -- "The Wrestler" was the toast of the Lido on the Venice Film Festival's penultimate day, with star Mickey Rourke's interpretation of an aging wrestler struggling to come to terms with the end of his career creating a buzz that ... 'The Wrestler' wins Venice Film Fest top award The Associated Press Mickey Rourke in The Wrestler. TIME Bloomberg - Reuters - Monsters and Critics.com - Los Angeles Times all 327 news articles Publ.Date : Sat, 06 Sep 2008 19:14:35 GMT McCain, Obama battle over economy, leadership - AFP Telegraph.co.uk McCain, Obama battle over economy, leadership AFP - 51 minutes ago COLORADO SPRINGS, Colorado (AFP) - Economic issues dominated the campaign trail Saturday as presidential hopefuls Barack Obama and John McCain battled over who could best lead the nation in troubled times. Reuters Politics Summary Washington Post Barack Obama, John McCain say they hate meddlers ... but both ... Los Angeles Times Intellectual Conservative - WGN - Financial Times all 650 news articles Publ.Date : Sat, 06 Sep 2008 19:15:37 GMT Boeing Machinists Take To Picket Line After Talks Collapse - CNNMoney.com Washington Post Boeing Machinists Take To Picket Line After Talks Collapse CNNMoney.com - 1 hour ago NEW YORK (AFP)-- Boeing machinists took to the picket line on Saturday as they launched a strike that has halted production and could cost the US aerospace giant more than $100 million per day. Low strike pay could limit length of Boeing work stoppage BloggingStocks Boeing machinists walk off the job MarketWatch Wall Street Journal - New York Times - AHN - Reuters all 2,440 news articles Publ.Date : Sat, 06 Sep 2008 18:46:08 GMT Clickbank Content How to Earn Money At Home

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

The Secret of Making Odds Only Bets

Pssst...! Wanna know a secret?How about the secret of making... Read More

2 Great Methods To Free Online Poker

What's one of the most common dreams for a an... Read More

Ten Easy Tips For Improving Your Online Poker Game

When you play poker online, you have options available that... Read More

Ways to Earn Extra Cash in Order to Enter Online Sweepstakes for Money

We all like to take a break from reality, play... Read More

Why You Should Never Buy an Online Slot Machine System!

Playing online slot machines has become increasingly popular, as online... Read More

Simple Jacks or Better Strategy Tutorial

Statistical Arbitrage strategy applied to Video PokerIntroductionJacks or Better is... Read More

The MIT Blackjack Team Story

The MIT Blackjack Team Story What's the first... Read More

Online Gambling Casinos - Wear Your Thinking Cap and Prosper

I receive many emails each week from people who deposited... Read More

Party Poker Sign up Bonus Code Tutorial

I have had a lot of emails from people who... Read More

Think Big and Give Your Poker Profits a Boost

Is your lack of confidence hurting your poker profits in... Read More

To Muck Or Not To Muck?

After a hand is completed in online poker you'll never... Read More

My Casino Blackjack Variation Game

I have played millions of hands of blackjack. I started... Read More

Help Become a Consistent Winner at Online Low-Limit Texas Hold ?Em by Playing at the ?Easy? Tables

Select Advantageous TablesTable selection is one of the most overlooked... Read More

Poker is Meant to be Fun

With the recent explosion of interest in poker, it is... Read More

Gambling in Monte Carlo

Along the French Riviera, the Principality of Monaco Houses the... Read More

Virtual Casino Online

What is a "virtual casino online"? This is a term... Read More

Are You Addicted To Gambling?

Most people know the answer to this question. You don't... Read More

Poker Tournaments

Most people believe that poker tournaments are for the most... Read More

Offshore Sportsbook

Offshore sportsbooks are also the result of many regulations the... Read More

Beat the Casinos

Do you have what it takes to become a successful... Read More

Bingo 101 What You Absolutely Need to Know About

It is quite surprising and amusing at the same time... Read More

Heres an Easy Exercise to Improve Your Texas Holdem Play

Many beginning Texas Holdem players develop a playing style that... Read More

Casino Business Opportunity

There are really two main options to owning a casino... Read More

International Gambling 101- What You Absolutely Need to Know

All of us are familiar with what does gambling stand... Read More

Roulette - How to Bet

Betting is very simple in roulette if you follow these... Read More