Online Gambling has grown drastically in the last five years. This is largely due to advances in technology. It also provides the opportunity for higher payouts. There are many online casinos that offer traditional games as well as live casino games. They are regulated by the MGA and UKGC.
Some state officials have expressed concerns about the potential for Internet gambling to bring illegal gambling into their jurisdictions. The Federal Communications Commission (FCC), however, has jurisdiction over common carriers. Therefore, it is possible for the FCC to ban facilities and discontinue the leasing of such facilities.
Additionally, the Commerce Clause and the Due Process Clause of the Fifth and Fourteenth Amendments may frustrate state enforcement policies, as may the presence of interstate or foreign elements. However, the commercial nature of the gambling business seems to be sufficient to withstand these objections.
As a result, the United States Department of Justice has taken legal action against several Internet gambling companies for violating federal laws. One such company, K23 Group Financial Services, was found guilty of money laundering and charged with violations of the Unlawful Internet Gambling Enforcement Act (UIGEA).
Another company, Sporting News, agreed to pay a $3 million fine for engaging in illegal Internet gambling and launched a public service campaign to educate consumers about the dangers of gambling. U.S. marshals seized $3.2 million from the company.
Several federal court cases have also questioned the constitutionality of Internet gambling. Although there are some instances in which the First Amendment restricts restrictions on free speech, there are limited exceptions.