The Online Gambling Industry and the Casino Industry

The advent of the Internet and mobile phones has brought a whole new dimension to gambling. It is now possible to play your favorite table games, poker, and slots from the comfort of your home. Some casinos even offer live dealer games where the casino dealer is in front of your computer or phone.

Although this might sound like a marketing ploy, it is true that the online gambling industry is on the rise. There are hundreds of vendors in the space, each offering a wide variety of games and the opportunity to win big. This paper examines the influence of a rapidly expanding online gambling industry on the casino industry.

While the industry is largely a state and local matter, there is some federal oversight. For instance, the Federal Communications Commission regulates common carriers such as telecommunications providers and Internet service providers. When a gambling facility engages in financial transactions within the United States, the law may impose fines or sanctions. In some cases, a federal marshal has even seized cash or equipment from a gambling site.

The UIGEA, or the Unlawful Internet Gambling Enforcement Act, has been a source of controversy since its passage in 2006. The Act prohibits the acceptance of financial instruments from unlawful Internet bets. However, in a recent case involving a New Jersey gaming operator, the Attorney General ruled that the act is not sufficiently broad to affect the business in question.

While the UIGEA is clearly intended to combat organized crime, the agency’s actions have prompted concerns about the government’s ability to regulate a global industry. Aside from the obvious jurisdictional issues, questions of legislative power have also arisen. One potential ally is the Commerce Clause. Several state officials have expressed concerns that the Internet could be used to bring illegal gambling into their respective jurisdictions.

The law has also been challenged on constitutional grounds. First Amendment concerns have been raised about the scope of regulation of activities conducted overseas. Likewise, due process concerns have been raised about the government’s ability to police activities in the U.S. that take place in part overseas.

The most important point to make about the UIGEA is that it is a piece of legislation that is designed to protect consumers from fraudulent and illegal Internet gambling activity. The UIGEA also provides certain factors to determine if a transaction is low-level or high-level. These factors include, but are not limited to, the type of bet, the amount of money involved, and the location of the transaction. Despite the legal pitfalls associated with gambling, a growing number of people are opting for the convenience and security of internet gaming.

On a more positive note, the UIGEA has sparked a flurry of innovation. Many small software developers have launched games on the Microgaming Quickfire platform. Moreover, a number of mobile gaming apps have appeared in the market that allow recreational gamblers to wager on their mobile devices.

Another UIGEA-related innovation is the Live Casino section of many casinos. This section, which can be accessed from a mobile device, allows players to wager on live events through a virtual gambling interface. Even though the Live Casino section is a relatively new feature, the technology is gaining in popularity. Online sports betting is a particularly popular form of gambling. People bet on the outcome of a sporting event, based on the team’s total number of points scored or the total number of goals scored.