While most states have not yet legalized online gambling, they have begun to regulate the industry. Nevada, Delaware, and New Jersey have taken the first step toward legalizing and regulating this industry. The process will continue on a state-by-state basis. Despite the legality of online gambling, there are many risks associated with this form of gambling.
Although gambling is mostly a matter of state law, federal law often reinforces state law. However, a federal law regulating internet-based gambling may frustrate state enforcement policies. In particular, states are concerned that the Internet may lead to the development of illegal gambling in their jurisdictions. Moreover, the Internet has a high level of anonymity, which is why state governments are reluctant to regulate it.
Under the United States Criminal Code, illegal internet gambling implicates seven federal criminal statutes. These include the Wire Act and Illegal Gambling Business Act. The Wire Act prohibits gambling on sports events and contests, the Travel Act prohibits interstate commerce, and the Racketeer Influenced and Corrupt Organizations Act prohibits gambling business activities.
Online casinos are divided into two types – download-based and web-based. Download-based online casinos are more secure and run more smoothly than web-based casinos. Both download-based and web-based casinos require a stable internet connection for smooth gameplay. However, players should be aware of the risk of malware.