Federal laws prohibiting online gambling are a hot topic for debate, and there are multiple arguments for and against their application. These arguments range from First Amendment free speech protection to the Commerce Clause. While the Commerce Clause’s commercial nature seems to satisfy free speech objections, due process arguments suffer when financial transactions are involved.
The federal government also regulates illegal internet gambling under seven federal criminal statutes. These include the Wire Act, which bans the conduct of sports wagering, the Travel Act, and the Racketeer Influenced and Corrupt Organizations Act. It is important to understand that not all online gambling is illegal, and some states have adopted their own laws and regulations.