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Gambling :: Reference

Legilsation

Webcasts & Podcasts

  • CATO Online Gambling: Lessons from the Internet and Bookmaking Oct 23, 2003

Timeline

  • 1961 - Wire Act Passed
  • 1995 - Internet gambling born
  • 1995 - HR 1495 Crime Prevention Act of 1995 (Sec. 1501 – Sen Kyl) (first legislation proposed to regulate Internet gambling)
  • 1996 -H.R. 497 / S 704 National Gambling Impact Study Commission Act  (calling for the National Gambling Impact Study Commission)
  • Jan 26, 1998 - Sports Illustrated publishes issue on Internet sports gambling sites
  • March 1998  -  FBI arrests Jay Cohen and others for operating an online gambling site, charging them with violation of the Wire Act
  • 1999 - National Gambling Impact Study Commission Final Report Released

Papers

Links

WTO Dispute

News

Statistics
  • NUA Worldwide Gambling Population 1998-2002
  • NUA Online Gabling Revenue 1998-2002
  • "Since the mid 1990s, Internet gambling operations have established approximately 1,800 egaming Web sites in locations outside the United States, and global revenues from Internet gaming in 2003 are projected to be $5.0 billion dollars."  Page 1. "In a recent report, gaming analysts estimage that in 2003 revenues from Intenret gambling industrywide will be $5.o billion, or approximately 4.3 percent of the total $116 billion in business-to-consumer global e-commerce." page 6.  GAO 03-89 Internet Gambling (Dec 2002)

States

Laws

Wire Act

Title 18, United States Code, Sec. 1084. Transmission of wagering information; penalties (The Wire Act)
    (a) 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.
    (b) Nothing in this section shall be construed to prevent the transmission in interstate or foreign commerce of information for use in news reporting of sporting events or contests, or for the transmission of information assisting in the placing of bets or wagers on a sporting event or contest from a State or foreign country where betting on that sporting event or contest is legal into a State or foreign country in which such betting is legal.
    (c) Nothing contained in this section shall create immunity from criminal prosecution under any laws of any State.
    (d) When any common carrier, subject to the jurisdiction of the Federal Communications Commission, is notified in writing by a Federal, State, or local law enforcement agency, acting within its jurisdiction, that any facility furnished by it is being used or will be used for the purpose of transmitting or receiving gambling information in interstate or foreign commerce in violation of Federal, State or local law, it  shall discontinue or refuse, the leasing, furnishing, or maintaining of such facility, after reasonable notice to the subscriber, but no damages, penalty or forfeiture, civil or criminal, shall be found against any common carrier for any act done in compliance with any notice received from a law enforcement agency. Nothing in this section shall be deemed to prejudice the right of any person affected thereby to secure an appropriate determination, as otherwise provided by law, in a Federal court or in a State or local tribunal or agency, that such facility should not be discontinued or removed, or should be restored.
    (e) As used in this section, the term ``State'' means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a commonwealth, territory or possession of the United States.

Travel Act

"The Travel Act provides criminal penalties for anyone who undertakes interstate or foreign commerce with the intent to distribute the proceedings of any unlawful activity."

Illegal Gambing Business Act

"The illegal Gambling Business Act makes it a crime to operate an "illegal gambling business."

Other Laws

  • Interstate Horse Racing Act of 1978 - 15 U.S.C. § 3001 et seq (horse racing)
  • Organized Crime Control Act, 18 U.S.C. § 1955 ( Violation of state gambling law, actionable at federal level )
  • The Interstate Transportation and Wagering Paraphernalia Act (aka The Travel Act), 18 U.S.C. § 1952 . ( Use of interstate commerce facility to promote or operate an illegal gambling )
  • 18 U.S.C. § 1301 (lotteries)
  • The Professional and Amateur Sports Protection Act, 28 U.S.C. § 3701-3704 (sports gambling)
  • Indian Gaming Regulatory Act, 25 U.S.C. § 2701 (National Indian Gaming Commission <www.nigc.gov>) ( Gambling on or by Native Americans )

Caselaw

  • USA v. Cohen, Docket No. 00-1574 (2nd Cir. July 31, 2001).
  • Missouri v. Coeur d'Alene Tribe, 164 F.3d 1102, 1999 U.S. App. LEXIS 62 (8th Cir. 1/6/99)
  • People v. World Interactive Gaming Corp., 1999 WL 591995 (NY Sup. Ct. July 22, 1999) (applying Wire and Travel Act to Internet Gambling).
  • Mastercard Internet Gambling Litigation, 132 Fsupp 2d 468 (EDLa 2001) (holding that Wire Act applies only to sports, horse, and dog betting).
  • Telephone News Sys. v. Illinois Bell Tel. Co., 220 F.Supp. 621 (N.D.Ill. 1963), aff'd, 376 U.S. 782 (1964).
  • United States v. Reeder, 614 F.2d 1179 (8th Cir. 1980)
  • United States v. Stonehouse, 452 F.2d 445 (7th Cir. 1971)
  • United States v. Kaczowski, 114 F.Supp.2d 143, 153 (WDNY 2000) (Where bet is legal where placed and where received, it does not violate Wire Act even where goes over interstate network)
  • Missouri v. Coeur D'Alene Tribe, 164 F.3d 1102, 1009 n.5 (88th Cir. 19999), cert. denied, 527 U.S. 1039 (1999). (Where bet is legal where placed and where received, it does not violate Wire Act even where goes over interstate network)
  • Transmission
    • The GAO notes there is disagreement within courts over "transmissions." If the information only goes one way, if it is only received, is it a transmission? Some courts have concluded that where information is merely received, it is not a transmission; it must be two way. Other courts have concluded that the metaphysical distinction between a communication that is not reciprocated and a communication which receives a reply, which is identical in all other technical regard, is beyond them. United States v. Reeder, 614 F.2d 1179 (8th Cir. 1980); United States v. Stonehouse, 452 F.2d 445 (7th Cir. 1971); Telephone News Sys. v. Illinois Bell Tel. Co., 220 F.Supp. 621 (N.D.Ill. 1963), aff'd, 376 U.S. 782 (1964).
  • Scope
    • If the bet is legal where it is place and where it is received, does it violate the Wire Act? A plain reading of the Wire Act might suggest that this does not offend. Yet, apparently it might. It is the opinion of the Department of Justice and some courts that even though a legal act between consenting adults both here and there, it nevertheless offends the Wire Act. H.R. Rep. No 87-967 at 3 (1961). Not offended are the following recent courts who find no violation of the Wire Act in these situations. United States v. Kaczowski, 114 F.Supp.2d 143, 153 (WDNY 2000); Missouri v. Coeur D'Alene Tribe, 164 F.3d 1102, 1009 n.5 (88th Cir. 19999), cert. denied, 527 U.S. 1039 (1999).

International

  • See GAO 03-89 Internet Gambling Page 17& Appendix III (Dec 2002) Australia, Canada, Hing Kong, UK,

 

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