The invention of the Internet marked a substantial change in the way society operates. As the Internet continued to evolve, many businesses began to take advantage of websites to promote and sell their products, including gambling establishments. Unfortunately, the use of the Internet for gambling came with several problems, forcing both federal and state governments to get involved in its operation.
Legality
Gambling is highly regulated by the United States at both the state and federal levels, including online gambling. Online gambling regulation is included in the Unlawful Internet Gambling Enforcement Act of 2006. Under this act, it is illegal to transfer funds from any United States financial institution to illegal Internet gambling sites, even ones that operate outside of the United States. This includes credit card transactions, electronic fund transfers, checks or drafts.
Addiction
Online gambling provides a new route for gambling addicts to be exploited. According to the American Psychiatric Association's Advisory on Internet Gambling, those who gamble online typically have more serious gambling problems than those who gamble in traditional casinos. Online gambling allows anyone with a credit card, a computer and an Internet connection to spend 24 hours a day gambling with money online without ever having to leave the house to travel to a casino. This allows a gambling addict to secretly gamble with little intervention or interaction with others to monitor their behavior. This access provides an unnecessary and dangerous temptation to those with a serious gambling addiction.
Children's Access
Online gambling provides an uninhibited way for minors to take part in gambling. All a minor needs is a credit card number, whether obtained with permission or stolen, to take part in gambling activities. Casinos use enforcement officers to check identification to ensure that a customer can legally enter the casino property. Without this enforcement online, anyone can gamble.
State Revenue
Many states rely on legal gambling establishments to add money to state revenues. States accomplish this by legally enforcing gambling, or in some cases, such as the lottery, providing a state-run gambling system. Online gambling removes the state's ability to receive this revenue by pulling gamblers to online websites, where the state is unable to benefit from gambling profits.
Fraud
The potential for fraud is one of the largest issues with Internet gambling. Online gambling sites expose their users to problems such as credit card fraud, identity theft and gambling software systems that can be rigged in favor of the site manufacturer. There are no options for pursuing gambling sites that do not pay out, leaving players without recourse against shady websites, according to the Washington State Gambling Commission.
References
- Washington State Gambling Commission: Illegal Internet Gambling (PDF)
- Stop Predatory Gambling Foundation: Unlawful Internet Gambling Enforcement Act of 2006 -- Fact Sheet (PDF)
- United Stated Department of Justice: Computer Crime and Intellectual Property Section (CCIPS)
- American Psychiatric Association: Advisory on Internet Gambling (PDF)
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