The legality of sports gambling in the United States is a fuzzy subject for many people given the different positions and points of view regarding the law and what it actually means and what its true intention is. To better understand this and hopefully get a better picture of the legal setting surrounding sports betting, we have to take a look back at how this issue has been handled in the past by the government.
The Interstate Wire Act issued in 1961 was one of the most discussed documents in the matter of Internet Gambling. While the Act fails to mention the Internet altogether (it had yet to be invented), it addresses telephone or other wire-containing devices as means of sports gambling and prohibits such activities. Many people cited this law and considered that it did have a say in the Internet gambling activity. Other issues arose from the Wire Act, such as if it involved all forms of gambling or only sports betting. In 2002, the 5th U.S. Circuit Court of Appeals upheld a ruling that dismissed a lawsuit against credit card companies brought by online casino bettors. In the dismissal, the court ruled the Wire Act was only pertinent to sporting events. However, the United States Justice Department had a different opinion, claiming that the Wire Act related to all forms of Internet gambling.
In 2006 and just before taking recess, the Congress passed the SAFE Port Act, intended to increase security of U.S. Port, but attached to it was the Unlawful Internet Gambling Enforcement Act, prohibiting Americans from using credit cards, electronic funds transfers or checks to finance Internet gambling activity. It is important to note that while the act only dealt with how the Internet gambling accounts were funded and not the actual betting.
In 2007, Rep. Barney Frank introduced the Internet Gambling Regulation and Enforcement Act, seeking to legalize Internet gambling, and Rep. James McDermott introduced the Internet Gambling Regulation and Tax Enforcement Act, which some called a companion bill to the one introduced by Rep. Frank. Rep. McDermott's bill deals with how to regulate online betting sites and how to collect a tax on all wagers made. Pappas, the executive director of the PPA, told members that they could expect to see Rep. Barney Frank’s poker bill up for a committee vote as early as next month. “We expect within a few short weeks, most likely in the month of February, there will be a committee vote on this legislation,” said Pappas. “This will be the first time — ever — that there will be a vote on licensing and regulation of Internet poker and Internet gaming in general,” said Pappas.
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By Laura Hills
Writer for Price Per
Head