Online Gambling Not Illegal Until Laws Pass Making It So
The recent verdict by the US Third Circuit Court of Appeals upholding the validity of the UIGEA also affirmed the law only bans payment processing of Internet gambling made illegal by other law. This has led to media coverage of iMEGA head Joe Brennan's assertion that only six states have laws against online gambling as meaning that forty-four states can legalize the hobby.But Online Casino Advisory gaming analyst Sherman Bradley says that's mis-stating the case.
"In the US, activities are legal unless a statute specifically says otherwise," states Bradley. "Residents can do as they like without waiting for govvernment approval."
But Bradley sees the problematic UIGEA coming back to unpredictably haunt parties on both sides of the online gaming issue. Despite the clearance by the court's decision for players in those forty-four states to participate in Internet wagering, money transfers may still remain blocked.
"A major flaw in the law is the placing of enforcement on the payment processors," asserts Bradley. "This means that Visa and Mastercard may still block gambling payments to err on the side of safety, rather than ascertain the laws of individual states and enforce the ban only when applicable."
And, he notes, those companies forced to act as interpreters of the law will be further confused by the bizarre stance of the Department of Justice, which says all online gambling is illegal, but allows online gambling on horse racing to go unimpeded. Further, the only two federal laws outlawing gambling, the Wire Act and the Professional and Amateur Sports Protection Act, have been found to only apply to sports gambling.
"The only judicial solution is a test case being brought forward, so that a court tells the DoJ in no uncertain terms to abide by the laws that exist, rather than those they wish existed, " says Bradley. "Perhaps a legislative solution will render the matter moot."
