Questions on the Legality of Online Gaming :

There's a gray area when ever the legality of online gaming is being brought into questioning. Online poker and other games of skill should not be treated as a chance game such as craps and roulette, although there is no clear ruling on this yet. As of this writing, no one has been arrested or charged for playing online poker but this is not a guarantee that no one will be arrested in the future. There are some pending acts in Congress that can change the status of online gaming legality.

According to Professor Nelson Rose, an expert in gambling laws, there is no U.S. federal law that prohibits online gambling, whether local or abroad. The bad news is that the United States government has taken a stand that certain things are illegal and could lead to a lawsuit. You can always fight the ruling if you're charged and there's a District and Appeal's Court ruling that could be in your favor.

The Federal government's basis on the issue at hand is the Wire Act, which is cited when ever the legality of online gambling is questioned. A section of the act states that whoever is engaged in betting or wagering via wire communication facilities for the transmission in interstate or foreign business of bets and wagers on any sporting events or contests can be fined or arrested not more than two years. Although this is an old law, it still holds through until today.

It is true that sport betting over the internet is covered by the Wire Act but whether online poker and other online gaming are covered by this act is another issue altogether. There are varying legal opinions on this one. But one that online gaming players should look at is the one that made on February 2001 by Judge Stanwood Duval of the New Orleans District Court. He ruled that the Wire Act does not disallow Internet gambling on a game of chance.

On November 2002, the U.S. 5th Circuit Federal Appeals Court upheld the judge's ruling and stated that it agreed with the district court ruling with regards to its summary of the relevant legislative history and its conclusion on the case. It also stated that the Appeals Court found that neither the Wire Act nor the mail and wire fraud statutes that happened before relevant to the case. It cannot serve as precedent because the defendants didn't violate any state or federal law. With this, online poker players should not fear that they'll be arrested in the middle of the night.

Although the United States Justice Department recently stated that the Wire Act does cover casino games, the Federal Appeals Court does say otherwise. Because of this, there are new legislations that need to be enacted such as the UIGEA which aims to limit players' ability to play online, although the act would not criminalize the act of online gambling. Future laws might make it totally illegal.

Gambling laws and regulation is usually the responsibility of each state. There was an instance in which the State of New York's Attorney General settled with Citibank and PayPal with regards to their role with online gaming. There are some states that ban any form of gambling in their jurisdictions, even if it is approved by the federal government.

As is, the Wire Act can be interpreted in many ways but if that District and Appeals Court is concerned, online poker is legal for U.S. citizens, unless it is illegal in the state where they live in. Then there's the Federal Organized Crime Control Act of 1970 which makes it a federal criminal offense for five or more people to engage in a gambling business that's illegal under state law. This act does not concern with players. This act also does not say anything about foreign commerce therefore in paper it can't be used with regards to online gaming that crosses international borders.

In November of 2004, Antigua and Barbuda had a favorable ruling made by the World Trade Organization that states that the United States law on online betting is against global business laws. In April 2005, the WTO Appellate Body affirmed the said ruling.

Then in September 2006, Congress enacted a law that prohibits financial institutes like banks to transfer funds to an online gaming web site. It didn't strengthen nor add on the Wire Act. It does not address online gaming in any way except for the money transfer involved.

Therefore if you're just someone who enjoys playing online poker and do not own a share of the house rake then you can be rest assured that you won't be arrested any time soon. Also you must only involve in a game of skill such as poker and don't bet on sports and other events. Also be sure that your state allows you to do so.