Despite the fact that online gambling has been legal in many countries since the late 1990s, the US has been hostile to Internet-based gambling. Since 2007, House Representatives have introduced several bills that would soften the federal Internet gambling law.
The US Department of Justice attempted to interpret the Interstate Wire Act as relating to all forms of Internet gambling. However, this attempt failed in court. In response, the US government has seized assets in cases of illegal online gaming. It also imposed a maximum fine of six months in prison on those who violate the guidelines.
Internet-based gambling has the potential to bring gambling directly into the home. In response to this threat, several states have introduced online sports betting. New Jersey is one of the first states to legalize online casino gaming. A handful of other states have followed suit.
The US government has also seized assets in cases of illegal online gambling, such as those related to illegal offshore gambling agreements. In other cases, the government has taken action against online gambling business owners.
Internet-based gambling has also been the subject of attacks based on the Commerce Clause. However, these attacks have had little effect.
The Internet Gambling Regulation and Tax Enforcement Act would regulate internet gambling businesses, and would tax them. It would also require internet gambling businesses to be licensed by the director of the Financial Crimes Enforcement Network. It would also clarify the rules regarding the application of the Wire Act, and exempt some games.