Is Online gambling unlawful in the United States?

[Ronald Marva]

There seems to be a lot of confusion with the law in the US restricting online gambling (The Leach Bill (H.R. 4411) – The Unlawful Internet Gambling Enforcement Act of 2005)

This ACT is in effect to prevent the use of payment instruments (credit cards, fund transfers, etc.) for certain forms of online gambling. The bill stipulates that financial institutions should identify and block payments related to so-called 'unlawful Internet gambling transactions'.

The bill provides a special exemption for three types of Internet gambling: (1) horse racing under the Interstate Horseracing Act (IHA), so OTBs and account wagering systems can remain in business, (2) Indian gambling that takes place on a reservation or between two reservations; and (3) Internet gambling that occurs solely within a state’s own borders, referred to as Intra-state gambling.

In spite of these legislation, Americans are allowed to freely and openly place bets via their computers, televisions or telephones on horse races at Off-Tracking-Betting companies and other similar services.

Americans can also freely and openly place bets online and by phone on sports events in the State of Nevada. The United States does not totally prohibit online gambling, as some federal officials often contend is the case.

The truth is that the United States authorizes and regulates its own domestic online gambling. In some states, Americans can purchase lottery tickets over the Internet. No one can truthfully represent there is no online gambling based in the United States and directed to United States residents.

[market]

It is a misconception indeed due to the high profile arrests in the US in the past few months. But those arrested were from financial institutions that process monetary transactions in favor of offshore gambling sites.

Affiliates are of not in any way affected as they are only referring clients.... Though, the US govt might be interested to go after the income tax of these affiliates considering the big earning they get from this endeavour.