We have broken up our analysis into three sections, covering the three major players in the online casino gambling industry. This is merely our interpretation of the legal situation, and should not be taken as legal advice of any sorts. The fact of whether online gambling is legal or not for you is up to debate, so we cannot offer legal counsel in this area, but in the meantime you should not have any trouble gambling online.

Australian Casino Law

Australia is one of the few countries in the world to have already enacted legislation designed specifically for online gambling.

On 28 June 2000 the Interactive Gambling Bill became law.

The legislation:
It is illegal for any interactive gambling service provider based outside Australia (including online casinos, sports books, race betting sites, lotteries etc) to offer its product to Australian residents.

It is illegal for any Australian based online casino to offer its product to:

1. Australian residents.
2. Residents of any country around the world that chooses to opt in on the Australian Government's restriction. " it is illegal to advertise any interactive gambling service on any medium within Australia (including 'Australian' web sites).

It is legal for Australian licensed online sports books, race betting and lottery sites to offer their product to Australian and international customers;

It is clear that the legislation is aimed at the casino/sports book operators and not players. The Australian Government is now faced with the very arduous undertaking of trying to put into effect this legislation.


US Gambling Law

Regulation of gambling in the United States was left up until reasonably recently, entirely to the State Legislatures, who determined the legality or otherwise of gambling activities within their jurisdiction. As a result the law depended on what was thought of gambling in each area. Some states have legalized many forms of gambling, while others have made it illegal to participate in any form of gambling other then the stats lottery. Nevada is the clear example of a State that has adopted gambling as a legal form of business, apposed to Utah, which is well - known for its strong anti - gambling attitude, and laws within its jurisdiction make all forms of gambling illegal.

US State gambling laws were all drafted long before the advent of the Internet, and they do not have provisions dealing specifically with online gambling.

US Federal Gambling Laws

Specific online gambling laws
Up to now, US Government attempts to pass laws dealing exclusively with online gambling have been unsuccessful. Separate Bills sponsored by Sen. Kyle and Rep. Goodlatte, which both attempted to forbid online gambling both failed to attract the required 2/3 majority Senate vote required to become law. And while it is likely that there will be more attempts to pass new laws dealing with web based gambling, until such an attempt will succeed, existing federal legislation serves as the only guide on this matter.

Existing Federal Laws
Although passed not long ago, US federal laws applying gambling activities were all written before the advent of Internet gambling. Federal laws relating to gambling were passed by Congress more recently (than State laws) to deal with inconsistencies in State based gambling laws, especially as they applied to interstate commerce. There are a number of current federal laws that have indirect influence on online gambling. We bring them below.

There are 4 Statutes that contain factors that could be construed to apply to Internet gambling. The Interstate Transportation of Wagering Paraphernalia Act, The Professional and Amateur Sports Protection Act, The Federal Aiding and Abetting Statute

The Wire Wager Act is the ruling that may be applied most directly to put a ceiling on the use of the Internet to gamble. It prohibits the use of a wire transmission facility to foster a gambling pursuit. It provides, in part:

"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."

Exactly how and to what extent this Act applies to web gambling is passionately debated. One school of thought in legal circles is that the Wire Act largely covers any interstate use of the Internet that is correlated with placing or receiving bets. A second school of thought is that the Wire Wager Act cannot be applied to online gambling generally for two reasons. First, the words "wire communication facility" only apply to transmissions that use wires and the proliferation of wireless Internet access would therefore fall outside the range of the Act. Second, reference to "bets or wagers on any sporting event or contest" implies the Act might only be relevant to wagering upon sporting events (not games based upon chance, like card games and others).

The above issues aside, it is apparent that whether or not the Wire Wager Act can be functional when it comes to Internet gambling, it can only be applied to those "being engaged in the business of betting or wagering." It cannot affect the online gambler or Internet service providers.

Keeping in mind the questionable validity with regard to their application to online gambling, and also the fact that US prosecutors will always have a difficult time finding the defendants and actually bringing them to the United States to stand trial, it is obvious why actual prosecutions in the US in this area are extremely rare.

Hopefully legislation will soon be enacted to unambiguous what is at present a very gray legal area.

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