Online gambling is a general term for gambling using the Internet.
Online poker
Main article: Online pokerOnline poker tables commonly offer Texas hold 'em, Omaha, Seven-card stud, razz, HORSE and other game types in both tournament and ring game structures. Players play against each other rather than the "house", with the card room making its money through "rake" and through tournament fees.
Online casinos
Main article: Online casinoThere are a large number of online casinos, in which people can play casino games such as roulette, blackjack, pachinko, baccarat and many others. These games are played against the "house", which makes money due to the fact that the odds are in its favor.
Online sports betting
Main article: Sports bettingBookmakers, spread betting firms and betting exchanges offer a variety of ways to wager over the Internet on the results of sporting events, the most popular being fixed-odds gambling.
Online bingo
Main article: Online bingoThere are a number of online bingo rooms offering games on the Internet.
Mobile gambling
Main article: Mobile gamblingDevelopments in the use of wireless, mobile devices to gamble follow in the wake of mainstream online gambling.
Funds transfers
Typically, gamblers upload funds to the online gambling company, make bets or play the games that it offers, and then cash out any winnings. Gamblers can often fund gambling accounts by credit card or debit card, and cash out winnings directly back to the card; most U.S. banks, however, prohibit the use of their cards for the purpose of internet gambling, and attempts by Americans to use credit cards at internet gambling sites are usually rejected. A number of electronic money services offer accounts with which online gambling can be funded; however, many top fund-transfer sites such as FirePay, Neteller & Moneybookers have discontinued service for U.S. residents.
Payment by check and wire transfer is also common.
Legality
Antigua and Barbuda
The government of the island nation of Antigua and Barbuda, which licenses Internet gambling entities, made a complaint to the World Trade Organization about the U.S. government's actions to impede online gaming. The Caribbean country won the preliminary ruling but WTO's appeals body somewhat narrowed that favorable ruling in April 2005. The appeals decision held that various state laws argued by Antigua and Barbuda to be contrary to WTO agreements were not sufficiently discussed during the course of the proceedings to be properly assessed by the panel. However, the appeals panel also ruled that the Wire Act and two other federal statutes prohibiting the provision of gambling services from Antigua to the United States violated the WTO's General Agreement on Trade in Services, or "GATS". Although the United States convinced the appeals panel that these laws were "necessary" to protect public health and morals, the asserted United States defense on these grounds was ultimately rejected because its laws relating to remote gambling on horse-racing were not applied equally to foreign and domestic online betting companies, and thus the United States could not establish that its laws were non-discriminatory.
On March 30, 2007, the WTO confirmed the U.S. "had done nothing to abide by an earlier verdict that labeled some U.S. Internet gambling restrictions as illegal."
On June 19, 2007, Antigua and Barbuda filed a claim with the WTO for USD $3.4 billion in trade sanctions against the United States, along with a request for authorization to ignore U.S. patent and copyright laws. This followed by a day similar demands for compensation made by the European Union.
Australia
On 28 June 2001 the Australian Government passed the Interactive gambling act 2001 (IGA). The government said that the IGA was important to protect Australians from the harmful effects of gambling.
The IGA targets the providers of interactive gambling services, not their potential or actual customers. The IGA makes it an offence to provide an interactive gambling service to a customer physically present in Australia, but it is not an offence for Australian residents to play poker or casino games online. In stark contrast to the USA, sports betting online is also completely legal in Australia, with many state government licensed sportsbooks in operation, such as Centrebet, Sportingbet & Betfair.
The offence applies to all interactive gambling service providers, whether based in Australia or offshore, whether Australian or foreign owned.
France
On March 5, 2009, France proposed new laws to regulate and tax internet gambling. Budget minister Eric Woerth stated the French gambling market would expand to adapte to "Internet reality." He further stated "Rather than banning 25,000 Web sites, we'd rather give licenses to those who will respect public and social order." The new regulations are expected to take effect January 1, 2010. Betting Exchanges, however, will remain illegal under the new plans.
India
It is a banned offence under the "Bombay Wager Act". Other Acts/Legislations are silent with respect to Online gambling/ Online Gaming in India.
Israel
The Israel gambling law (Israeli Penal Law 5737 - 1977) does not refer specifically to online gambling (land based gambling and playing games of chances is prohibited except in the cases of the Israel Lottery and the Israeli Commission for Sports Gambling). In December 2005, the Attorney General ordered all online gambling operations, online backgammon included, to close their businesses and at the same time commanded credit card companies to cease cooperating with online gambling websites. In May 2007, the Attorney General had excluded the online backgammon website Play65 of the ruling, due to "the unique circumstances of the site activity", allowing to return to full activity in Israel.
Russia
Russian legislation, enacted in December 2006, prohibits online gambling altogether (as well as any gambling relying on telecommunications technology).
United States
The United States Court of Appeals for the Fifth Circuit ruled in November 2002 that the Federal Wire Act prohibits electronic transmission of information for sports betting across telecommunications lines but affirmed a lower court ruling that the Wire Act "'in plain language' does not prohibit Internet gambling on a game of chance."
Some states have specific laws against online gambling of any kind. Also, owning an online gaming operation without proper licensing would be illegal, and no states are currently granting online gaming licenses.
In March 2003, Deputy Assistant Attorney General John G. Malcolm testified before the Senate Banking Committee regarding the special problems presented by online gambling. A major concern of the United States Department of Justice is online money laundering. The anonymous nature of the Internet and the use of encryption make it especially difficult to trace online money laundering transactions.
In April 2004 Google and Yahoo!, the two largest internet search engines, announced that they were removing online gambling advertising from their sites. The move followed a United States Department of Justice announcement that, in what some say is a contradiction of the Appeals Court ruling, the Wire Act relating to telephone betting applies to all forms of Internet gambling, and that any advertising of such gambling "may" be deemed as aiding and abetting. Critics of the Justice Department's move say that it has no legal basis for pressuring companies to remove advertisements and that the advertisements are protected by the First Amendment. In April 2005, Yahoo! has instigated a restrictive policy about gambling ads.
In August 2004, Casino City, an online portal for internet gambling sites, sued the US Department of Justice. The complaint alleged, inter alia, that the website's business—promoting internet gambling—was legal, and requested a declaration from the court that its business was protected by the First Amendment. The U.S. District Court for the Middle District of Louisiana dismissed the case in February 2005.
In its opinion, the District Court wrote,
The US Court of Appeals, 5th Circuit, dismissed Casino City's appeal in January, 2006.
In February 2005 the North Dakota House of Representatives passed a bill to legalize and regulate online poker and online poker cardroom operators in the state. Testifying before the State Senate, Nigel Payne, CEO of Paradise Poker, pledged to relocate to the state if the bill became law. However, the measure was defeated by the State Senate in March 2005. Rep. Jim Kasper, who sponsored the 2005 legislation, plans to introduce similar bills in the 2007 North Dakota legislative session.
In July 2006, David Carruthers, the CEO of BetonSports, a company publicly traded on the London Stock Exchange, was detained in Texas while changing planes on his way from London to Costa Rica. He and ten other individuals had been previously charged in a sealed indictment with violations of US federal laws relating to illegal gambling. While as noted above, a United States Appeals court has stated that the Wire Act does not apply to non-sports betting, the Supreme Court of the United States previously refused to hear an appe
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