Several federal criminal statutes have been implicated by illegal gambling on the Internet. These include the Wire Act, the Federal Wire Act, the Illegal Gambling Business Act, the Travel Act, and the Racketeer Influenced and Corrupt Organizations (RICO) Act. Each of these statutes prohibits the operation of an illegal gambling business.
The Wire Act and the Travel Act, as well as the RICO Act, prohibit illegal gambling on contests and sporting events. However, state law has become the primary authority on gambling. Some state officials have expressed concern that the Internet could be used to transport illegal gambling into their jurisdictions.
The Travel Act prohibits promotion and facilitation of illegal gambling and money laundering. It also prohibits shipments of goods related to gambling and debts resulting from gambling.
Under the Travel Act, any person engaged in unlawful gambling on interstate commerce or foreign commerce must be subject to a criminal penalty. This jurisdiction can be established by reference to the telecommunications component of the Internet or by reference to shipments in interstate or foreign commerce.
The Illegal Gambling Business Act prohibits gambling businesses from accepting payments for illegal Internet bets. The owners of such businesses can be imprisoned for up to five years. The owners of gambling businesses can also be fined. The owners of illegal gambling businesses must have a gross revenue of at least $2,000 in any one day. They must also have a substantially continuous operation for at least thirty days.