INTRODUCTION TO E GAMBLING

Gambling is the act of risking the loss of something of value (usually

money) on an uncertain outcome in the hope of winning something of
greater value (usually money). Gambling is a common pastime in most
Western societies today. Many studies have shown that up to 90% of
adults have gambled at some point in their life.
Pathological gambling is defined by the Diagnostic and Statistical
Manual of Mental Disorders, 4th ed (DSM-IV) as persistent or
recurrent gambling behavior that disrupts personal, family, or
vocational pursuits.The prevalence of
pathological gambling among adults is estimated to be
between 1% to 3%, and several studies have shown that the majority of
pathological gambling begins during adolescence. In one study, 86% of
adult pathological gamblers started gambling before 19 years of age.

Online Gambling (also called Internet Gambling or Internet Gaming)

refers to playing games of chance for money over the Internet.
Since the mid-1990's online gambling sites have mushroomed, offering
all kinds of betting opportunities, including electronic versions of
casino table games as well as poker in all varieties, sports betting and
bingo. You simply need a web browser and some money to wager. The
concept of "Online and on the money" is certainly at the heart of most
modern day bettors. The bettor who wants to place bets online can bet
on the usual online gambling casino treats. Once they have gambled
on blackjack, roulette and poker, they can log onto the sports turn to
the poker, blackjack and roulette tables, the online gambler of today is
free to explore the gambling opportunities in the local and
international tennis, basketball and football games, not to mention the
take bets on the next winner of Idols, Big Brother of Survivor! Odds are
high that the dot com revolution, boosted by the online gambling
revolution.
In 2001, some gaming analysts were projecting that gross revenues
from Internet gambling would exceed $6 billion by 2003. However,
analysts lowered revenue estimates for a number of reasons, including
increased pressure from U.S. lawmakers and the blocking of Internet
gambling transactions by many large U.S. credit card issuers. (U.S.
customers are reported to constitute Anywhere from 50 to 70 percent
of total operator revenues from Internet gambling.) And, despite the
recent revenue reduction, the e-gaming industry continues to grow. In
a recent report, gaming analysts estimate that in 2003 revenues from
Internet gambling industry wide will be $5.0
Billion, or approximately 4.3 percent of the total $116 billion in
business to- consumer global e-commerce. In the view of gaming
analysts, the international markets (non-U.S. customers) represent the
future of the industry’s growth.
The Pros

1. Online gambling is a competitive business and many casinos will

offer a lot to get and keep your business. Many will offer sign-up
bonuses to new customers, adding 10 to 50% of their initial
deposit to their bankroll (see below for more on this subject).
Some will randomly deposit money in customer accounts and
others will give away vacations for specified levels of total
money bet.
2. The rules are usually better than in physical casinos.
3. You don't have to travel long distances. The casino is in your own
home.
4. You don't have to suffer real casino annoyances, like smokers.
5. You don't have to feel obligated to tip.

The Cons

1. You have to be patient about getting your money after you cash
out. In addition to waiting periods on the casino end there are
also delays on the credit card end. Two to four weeks is the norm
for the time between cashing out and your credit appearing back
on your credit card. Debit cards are much faster taking only
about 3 to 5 business days.
2. Customer service can be spotty depending on where you play.
Some places offer great service via e-mail and a toll-free
number. Others take several days to reply to an e-mail, have no
known telephone number, and generally seem like they just
don't want to be bothered aside from taking your money.
3. The player has no power or authority to turn to in the event of a
dispute. Usually in the player agreement it says the casino can
make up the rules as they go and in the event of a dispute the
casino's word is final.
4. If you play at a lot of places your credit/debit card statement will
be a nightmare to balance. Transactions seldom indicate the
name of the casino you played at but instead specify the
merchant bank.

In this project I will study about legal issues related to electronic

gambling which are prevailing in United States. In India and in many
other countries there is no proper legal framework for e gambling
which makes it complex and sometimes harmful for the country.
But in US there are certain rules regulating the electronic gambling
which would be studied by me in this project.
 REVIEW OF EXISTING LITERATURE

To check the legal framework of online gambling in US a study was

conducted by GAO( GENERAL ACCOUNTING OFFICE). The points which
they examined were:

 The legal framework for online gambling domestically and

abroad.
 The credit card industry’s policies regarding the use of credit
cards to pay for Internet gambling and actions taken to restrict
such usage; and
 the views of law enforcement, banking regulators, and the credit
card and gaming industries on the vulnerability of Internet
gambling to money laundering.

They issued an interim report on these issues in September 2002.

GAO makes no
Recommendations in this report.

RESULTS IN BRIEF:

Although gambling regulation is generally left to the states, the federal

government has the authority, under the Commerce Clause of the
Constitution, to regulate gambling activity that affects interstate
commerce. Internet gambling falls into this category, as bets are
generally placed at a personal computer in one state or country and
received at a server in another state or country. Of the three federal
statutes that appear to have direct applicability to on-line gambling—
the Wire Act, the Travel Act, and the Illegal Gambling Business Act—to
date only the Wire Act has been applied in the federal prosecution of
activity relating to Internet Gambling. The other two federal gambling
statutes have been used in the closely analogous situation of
telephone wagering, including telephone calls made to place wagers
with offshore bookmakers. The Wire Act prohibits gambling businesses
from knowingly receiving or sending certain types of bets or
information that assists in placing bets over interstate and
international wires. Thus, if an Internet gaming Web site operating in
any country (including the United States) receives a bet transmitted by
an individual located in the United States, the operator has violated the
Wire Act. For this reason, foreign entities offering gambling to U.S.
citizens through the Internet would be subject to the Wire Act.
Although some Internet gambling businesses, including foreign
entities, have been successfully prosecuted under the Wire Act, courts
do not agree on the applicability of certain sections of the statute.

First, individual courts have reached different conclusions about the

types of gambling covered by the act. The statute prohibits the
transmission of “Information assisting in the placing of bets or wagers
on any sporting Event or contest.” This language has led some courts
to interpret the Wire Act as covering bets only on contests that involve
sports. Second, the phrase “transmission of a wire communication” is
somewhat ambiguous as it applies to the Internet. Depending on how
the phrase is interpreted, the act might not apply to Internet gambling
in some instances—for example, when information is only received
over the Internet. Some courts have held that “transmission” means
receiving as 18U.S. Const., art. I, § 8, cl. 3 states in relevant part that
“The Congress shall have Power to regulate Commerce with foreign
Nations, and among the several States, and with the Indian Tribes.”

WHAT GAO SAYS IN THIS REPORT:

 The global legal framework for Internet gambling is a

complicated mix of
laws and regulations. In the United States, both federal and state
statutes
apply.
 Gambling is generally regulated at the state level, with federal
law
supporting state laws and regulations to ensure that interstate and
foreign
commerce do not circumvent them.
 The Wire Act, which prohibits gambling businesses from using
interstate or international telecommunications wires to
knowingly transmit or receive bets, is the main federal statute
used to prosecute such activity.
 Foreign countries and jurisdictions have taken a
variety of approaches to regulating on-line gaming, including legalizing
some
forms, seeking effective regulatory approaches, and prohibiting it
entirely.
 That Internet gambling could be used to launder money, but
others viewed the threat as less serious. Law enforcement
representatives said that the anonymity and jurisdictional issues
characteristic of Internet gambling make on-line gaming a
potentially powerful tool for money launderers. They noted that
few money laundering cases involving Internet gambling had
been prosecuted but attributed the small number of cases
primarily to a lack of regulation and oversight.
 RESEARCH METHODOLOGY

While doing a research a particular methodology is followed by every

researcher so that it is easy to complete a research without any
obstacles. Methodology is the combination of some steps followed
while doing a research and it differs for every research. So the
methodology followed by me is as follows.

 FORMULATING THE RESEARCH PROBLEM OR OBJECTIVE OF THE

RESEARCH:

Defining objectives is very essential to give the direction to a research

and to achieve the objectives of a research. Objectives should be
compatible and achievable. So first of all I defined the objective of my
research.

 The objective of my research is to study legal issues prevailing in

electronic gambling.
 The unit of analysis are the countries to which I have related my
study.

 CHOICE OF RESEARCH DESIGN:

Mainly the research is of three types:

 Exploratory research: in which we try to give new directions to

the study conducted by us.

 Descriptive research: In which we just describe the what we have

studied.

 Casual research

My research is a descriptive research because I have just described the

legal issues related to online gambling and their effects.

 DETERMINING SOURCES OF DATA:

Source of data is very essential for every research and should be

pre determined by every researcher and data sources should also
be reliable and proper according to the study. Data should be
collected according to the need of the research.
 The data sources may be of two types:

 Primary data: in which data is collected by researchers

themselves by conducting the surveys. Survey may be census
or sample survey.

 Secondary data: where the researcher uses the data collected

by other person or organization this source of data have its
limitations and may not be trustworthy sometimes.

My source of data is secondary as the data is collected using internet

and is based on study conducted by other organizations. I have not
used any primary data and no survey is conducted by me.

 DETERMINING SAMPLE DESIGN AND SIZE:

The next step is to determine the design of the sample. The sample
used in this project is sample survey as the unit of study is only one
country that is UNITED STATES and I will try to determine legal
framework of E GAMBLING in world with the help of US data only.

The size of sample is only one that is US.

 PREPARING THE PROJECT REPORT:

Once the data is collected then the next and final step is to prepare a
project report which is essential to briefly describe the project. It
should be made in such a way that it can provide all the data to the
reader but still in brief so the reader interest remains in the project.
 DATA COLLECTION AND ANALYSIS

In this project I had tried to collect information about the legal issues
related to online gambling in US. But before that also like to take my
study to other country’s views about online gambling legality.

LEGAL ISSUES IN ONLINE GAMBLING

In most jurisdictions around the world, the law is still a long way behind
the technology and issues applying to online gambling. As a result, the
question of whether or not it is legal to gambling online can rarely be
answered definitively. It is probably fair to say also, that government
attitudes to online gambling vary significantly, from whole hearted
support, to strong opposition, to indifference. What is clear though, is
that there is very little by way of legislation drafted specifically to deal
with online gambling, whether positive or negative, and the application
of existing laws is proving problematic. The legal issues in online
gambling prevailing in various countries are:

Antigua & Legalized Jun 23, Interactive gaming (casino

Barbuda 2008 games and poker) and
interactive wagering (sports
betting) are legal and regulated
on the islands of Antigua and
Barbuda.
Argentina Banned Sep 30, Argentina will be working
2009 toward legalizing and regulating
online gambling over the next
few months.
Australia Partly May 27, According to the Australian
Legalized 2008 Interactive Gambling Act 2001,
it is illegal to provide online
gaming services to Australian
citizens but it is not an offence
to actually play poker or casino
games online. Sports betting is
legal with many government
licensed providers in operation.
Austria Partly Apr 30, State monopoly, challenged and
Legalized 2008 currently re-evaluated under
European Union pressure.
Belize Partly Jun 24, Online gaming licenses may be
Legalized 2008 issued to companies operating
from Belize, in line with the
Gaming Control Regulations of
2004. Sites licensed in Belize,
however, are not permitted to
accept wagers from Belize
residents.
Bulgaria Undetermin May 01, In the process of legalizing and
ed 2008 regulating online gambling in
the country.
Canada Undetermin May 08, While online gambling is not yet
ed 2008 legal in Canada, many
Canadians play at websites
located at jurisdictions other
than Canada, and even at
Kahnawake-based online casino
sites, hosted by the Mohawk
First Nations of Canada.
China Banned Apr 30, Online gambling is banned in
2008 China, as is casino gambling,
save the mightily successful
region of Macau, where there is
talk that Internet gambling may
be introduced next.
Costa Rica Partly May 12, It is against the law to accept
Legalized 2008 bets on gambling games in
Costa Rica, but the industry has
designed ways around it. As for
games, some are legal, some
not, and the legal status of the
rest is undetermined.
Cyprus Legalized Jun 23, Online lotteries, betting
2008 exchanges, casino gaming and
sports betting are all legal in
Cyprus. The government has
proposed a stricter online
gambling law that has yet to
become law.
Denmark Partly Apr 30, State monopoly online
Legalized 2008 gambling, reconsidered by
Danish government in light of
 European Union criticism.
Dominica Legalized Jul 01, Dominica offers licenses to
2008 online casinos and sportsbooks.
There is no tax on profits or
income of non-permanent
residents. The company must
maintain a physical presence in
Dominica.
Dominican Partly Jul 02, The Dominican Republic
Republic Legalized 2008 licenses online sports books. No
new license, however, has been
granted to a sportsbook
operating primarily from
outside the Dominican Republic
since 1996.
Finland Legalized May 11, Online gambling is popular in
2008 Finland, but the country is
trying to curb the casino sites
through such propositions as
allowing gamblers to recoup
their losses.
France Partly Sep 30, The French Parliament will vote
Legalized 2009 on a bill that will open up the
local online gambling market to
foreign companies in addition to
its current state run monopoly.
Germany Undetermin Nov 05, All 16 German state legislatures
ed 2008 have voted to ban online
gambling, which makes it
illegal, only the case is
challenged by the industry at
the European Union Court.
Gibraltar Legalized May 01, Gibraltar has been a major
2008 online casino center for years,
and maintains a steady position
as such.
Hong Kong Partly Jun 29, Only the Hong Kong Jockey Club
Legalized 2008 is authorized to offer betting on
lotteries, horseracing and
football online. Offshore
providers are not permitted to
 offer online gambling services
in Hong Kong.
India Undetermin Sep 15, There are no laws that address
ed 2008 online gambling in India. There
are casinos in Goa hotels, while
gambling is prohibited
elsewhere, but the status of its
Internet form of gambling is not
determined.
Ireland Legalized May 26, Online gambling is legal in
2008 Ireland. Gambling winnings in
Ireland are tax-free.
Israel Banned May 01, Online gambling is banned in
2008 Israel, and its parliament has
even considered censoring the
Internet to prevent access to
online casino sites.
Italy Legalized Sep 18, Online gambling has been
2008 legalised in Italy in September
2008, in stages, as the
government attempts to limit
the hours people play online
and control the market
generally speaking.
Jamaica Legalized Jun 30, All forms of gambling in Jamaica
2008 are regulated by the Betting,
Gaming and Lotteries
Commission (BGLC).
Japan Banned Mar 19, Today only horse and motor
2009 racing are legal to gamble on in
Japan, while the Lottery,
Pachinko, and Mahjong are
classified as amusements, thus
legal. The government has
started debating legalizing
online casinos in Japan.
Korea Banned Jun 10, The law in South Korea makes it
South 2008 illegal for players to gamble
online.
Liechtenst Partly Jun 29, Only the government-controlled
ein Legalized 2008 lottery, PlusLOTTO, is permitted
 to offer gambling services over
the internet.
Macau Undetermin Jun 30, The Macau Jockey Club and the
ed 2008 Sociedade de Loterias e
Apostas Mutuas de Maceau are
authorized to offer online sports
betting. There is currently no
regulatory framework for
foreign providers wishing to
operate remote services from
Macau.
Malaysia Banned May 12, Though football sports betting
2008 is popular in Malaysia, online
gambling is illegal.
Malta Legalized May 01, Malta is a central location for
2008 online casino companies.
Mauritius Legalized Jul 01, Mauritius has been offering
2008 licenses to online gaming
operators based in the country
since 1996.
Mexico Legalized May 11, Several online casinos operate
2008 in Mexico since 2002, when the
government granted licenses
for these gambling operations.
Netherland Partly Apr 30, State monopoly under fire by
s Legalized 2008 European Union members for
stifling free and fair
competition.
New Partly Jun 10, TAB and the New Zealand
Zealand Legalized 2008 Lotteries Commission are
authorized to offer lottery
products and sports betting
over the internet. Other online
gambling providers, however,
are prohibited from entering the
market although is not illegal
for New Zealanders to gamble
with offshore providers.
Norway Partly Dec 17, The government banned online
Legalized 2008 gambling in December 2008, a
ban that will come into force by
 the end of 2009. The ban,
challenged by the EU, means
only state-owned gambling
services will remain legal.
Panama Legalized Jun 24, Panama began to regulate
2008 electronic games of chance and
wagering activities in 2002.
Internet gaming providers can
essentially operate tax-free
when accepting foreign wagers.
Philippines Legalized May 26, Few companies allowed to issue
2008 licenses to online casinos based
in the Philippines.
Poland Banned Apr 24, Internet gambling is
2008 unregulated, but government
officials announced that will
change in the second half of
2008.
Portugal Partly Sep 30, The EU Court of Justice has
Legalized 2009 ruled that the Portugal state-
run monopoly, banning external
online gambling providers from
catering to the Portuguese
players, is legal as long as it is
justified in combating crime and
fraud.
Romania Undetermin Mar 19, Casinos, the kind you find in
ed 2009 hotels and resorts, are legal in
the country. Online gambling,
however, is not addressed by
the law in any way.
Russian Banned Jul 02, Online gambling is banned,
Federation 2009 along with all forms of casino
gambling, in all but 4 regions in
Russia, starting July 1, 2009.
Seychelles Legalized Jul 01, Seychelles offers licenses to
2008 online gaming providers under
the Interactive Gaming Act of
2003. Companies need not be
based in the Seychelles but
must have a company
 representative living on the
island.

Singapore Undetermin Aug 14, Singapore laws strictly prohibit

ed 2008 online gambling and the
advertising or promotion of
gambling venues.
South Legalized Jul 27, The National Gambling
Africa 2008 Amendment Bill was approved
by the President in July 2008
and caters for the legalization
and regulation of the South
African online gaming industry.
Spain Legalized May 04, Gambling online is legal in
2008 Spain, where regions have the
liberty to set their own rules
regarding the issue.
Swaziland Partly Jun 29, Swaziland-based sites are
Legalized 2008 banned from accepting wagers
from South African residents.
Piggs Peak Casino, however, is
authorized to offer online Rand
gambling to Swaziland, South
Africa, Namibia and Lesotho.
Sweden Legalized May 11, Online casino gambling is legal
2008 in Sweden, under European
Union rules and regulations, but
a ban on advertising is currently
in place, though challenged.
Taiwan Undetermin Mar 19, A gambling ban was lifted by
ed 2009 the government in January,
2009 and the government has
since began formulating a plan
for the future of casinos in the
country. Are online casinos next
to be favorably addressed?
Tanzania Legalized Jun 30, In December 1999 the Gaming
2008 Control Act was amended,
legalizing online gambling in
Tasmania and providing a
licensing system for fixed-odds
 wagering, sports betting,
simulated games and lotteries.

Thailand Banned May 04, Thailand forbids any sort of

2008 gambling on the Internet.
Turkey Partly May 26, A law was passed in 2007
Legalized 2008 outlawing online gambling in
Turkey, although the partially
state-owned sports betting
company, IDDAA, remains
unaffected.
UK Legalized Apr 24, Legalized and regulated under
2008 the Gambling Act 2005.
Ukraine Banned Jul 02, Online gambling, along with
2009 casinos across the country, are
banned.
USA Banned Apr 24, Banned under the Unlawful
2008 Internet Gambling Enforcement
Act, Title VIII of the Safe Port
Act, with exceptions of fantasy
sports, online lotteries, and
horse racing.
Vietnam Undetermin May 04, Currently, all forms of gambling
ed 2008 save the state lottery are illegal
in Vietnam, but the country is
considering regulating an online
gambling industry.

LEGAL ISSUES RELATING TO E GAMMBLING IN US

Although gambling regulation is generally left to the states, the federal

government has the authority, under the Commerce Clause of the
Constitution, to regulate gambling activity that affects interstate
commerce. Internet gambling falls into this category, as bets are
generally placed at a personal computer in one state or country and
received at a server in another state or country. If the three federal
statutes that appear to have direct applicability to on-line gambling:
 1. WIRE ACT

The Wire Wager Act is the statute that may be applied most directly to
restrict the use of the Internet as to gamble. It prohibits the use of a
wire transmission facility to foster a gambling pursuit. It provides, in
part:

"Whoever being engaged in the business of betting or wagering

knowingly uses a wire communication facility for the transmission in
interstate or foreign commerce of bets or wagers or information
assisting in the placing of bets or wagers on any sporting event or
contest, or for the transmission of a wire communication which entitles
the recipient to receive money or credit as a result of bets or wagers,
or for information assisting in the placing of bets or wagers, shall be
fined under this title or imprisoned not more than two years, or both."

Finally, the Wire Act mandates that a wire communication facility must
be involved in order for a violation to occur. Currently, all Internet
communications are dependent in some way on some type of wire
communication, such as telephone or data lines. Depending on how
Internet technology develops, however, future Internet
communications may no longer be wire communications covered under
the Wire Act.

Exactly how this Act applies to Internet wagering is hotly debated. One
school of thought in legal circles is that the Wire Act broadly covers
any interstate use of the Internet that is related to placing or receiving
bets. A second school of thought is that the Wire Wager Act cannot be
applied to online gambling generally for two reasons. First, the words
"wire communication facility" only apply to transmissions that use
wires and the proliferation of wireless Internet access would therefore
fall outside the scope of the Act. Second, reference to "bets or wagers
on any sporting event or contest" implies the Act might only apply to
wagering upon sporting events (not card games or other games based
upon chance).

So finally we can say that it is still not clear that whether wire act
applies to online gambling or not.

2. TRAVEL ACT

The Travel Act imposes criminal penalties for those who utilize
interstate or foreign commerce with the intent to distribute the
proceeds of any unlawful activity. Under the Travel Act, unlawful
activity includes any business enterprise involving gambling in
violation of the laws of the state where the gambling takes place or of
the United States. Thus, gambling over the Internet generally would
violate the Travel Act because an interstate facility, the Internet, is
used to conduct gambling.

3. ILLEGAL GAMBLING BUSINESS ACT

The illegal gambling business act makes it a crime to operate an

illegal gambling business, which is defined as a gambling business
that meets three conditions:

• It violates a law of state where it takes place

• It involves at least five people for a period of 30 days
• It operates for the most part continuously for 30 days
takes in gross revenue of $2000 in a single day

The Illegal Gambling Business Act makes it a crime to operate an

“illegal gambling business.”
Operating a gambling Web site for over 30 days in a state under the
conditions described above would violate this act. A Web site could
easily meet these conditions, including the requirement that at least
five individuals be involved in its operation. The five people do not
need to be directly involved in the gambling but must only be
considered “necessary and helpful” to the operation. Computer
operators, computer maintenance crews, accountants, and owners
could all be included as “necessary and helpful” in the operation of an
Internet gambling Web site.
Like the Wire Act, the Illegal Gambling Business Act applies only to
gambling businesses, not individual gamblers. The Illegal Gambling
Business Act does not require that the casino operators be convicted in
state court, but the gambling activity must violate state law.

So I can say that even in US the legal framework for e gambling is

complex and confusing.
 SUGGESTIONS

 Every country as well as US should pay attention to legal issues

for e gambling as it is growing day by day in every part of world.

 Government should try to regulate online gambling not prohibit

it. As attempts to prohibit it are unlikely to succeed because of
interstate and international nature of internet. Most Internet
gaming prohibitions, if enacted, would only succeed in driving
Internet gaming underground and keeping it offshore. H.R. 21
and S. 627, currently under consideration in Congress, would
drive payment processing from the most transparent forms
(credit card transactions) toward the least transparent (blind e-
cash). Finally, if the U.S. sets the precedent of using settlement
(meaning payment processing) as the regulatory choke-point for
e-commerce, it is reasonable to conclude that governments at
every level in every country will do the same – that could make
e-commerce unworkable.

 Government should try to license and regulate e

gambling as Licensing and regulation of Internet gaming
will extend appropriate protection against minor
gambling, problem gambling, and money laundering.
Many jurisdictions, from the United Kingdom and Australia to
Curacao and Antigua have commenced the process of regulating
Internet gaming and some as Ireland, Finland and Italy have
already legalized it . They have found that appropriate
regulations can ensure that Internet gaming operators know their
customers, watch for signs of problem gaming, and follow
established money-laundering criteria applicable to other
industries.

 Government should try to generate awareness among population

about the disadvantages of online gambling at a high level so
that they are aware about possible losses that they can face.
This may help them to stay away from online gambling.

 The government of various countries should join hands to control

and regulate e gambling in joint.

 As online gambling is growing day by day and it’s a profitable

business so government should try to make its operations legal
and controlled and use it in wellness of the country.
  In US most of the persons do online gambling even minors are
indulged in it so government should also try to regulate it. As
minors don’t have proper knowledge about it which can cause a
great loss to them.

 According to GAO many law representatives said that online

gambling may be used to launder money and it is a great tool for
that which can result in illegal activities increasing in US AND
other countries also which should also be regulated.

 In US every state decides law about online gambling but it should

be made at country level and should be used equally in every
part of country so that the legal framework may not be confusing
and complex.

 A U.S.-based licensed and regulated Internet gaming

industry would "suck all of the oxygen" out of an off-
shore industry without U.S. licenses.

Rep. Bobby Scott (D-VA) put this well in hearing when he said, "If
people in the U.S. have a choice between betting at Offhshore.com or
Caesar'sPalace.com, they are going to go to Caesar's every time. The
marketing potential of U.S. branding, combined with the confidence
that players would feel with a U.S. licensed entity would allow U.S.-
licensed operators a substantial advantage.

In sum, licensing and regulation of Internet gaming is the best way to

ensure appropriate consumer protections, appropriate protections
against money-laundering, and an appropriate revenue stream to U.S.
jurisdictions. Efforts at prohibition are unlikely to achieve any of these.
 CONCLUSION

 Legal framework for online gambling is very complex and

confusing is US.

 There are state laws and federal laws which are made to
control online gambling in US.

 In US a very large part of population is indulged in online

gambling.

 In most of the countries there is no legal framework to control

or regulate online gambling.

 Some countries have made it legal or are trying to make it

legal and have found it beneficial.

 In India the legal condition of online gambling is still

undetermined.

 If made legal online gambling can be a huge source of

income for some countries.

 Government would have to wake up and do something about

online gambling or It would prove vulnerable for them.
 REFERENCES
1. http://www.casino.org
2. http://www.gamblenet.com/bet/; company name changed from
Sports International Ltd. on April 3, 1996 according to a company
press release posted on its web site.
3. http://www.interlotto.li
4. http://www.funscape.com; http://www.netcasino.com;
http:www.vegas.com/wagernet (Wagernet's service, though
advertised on the World Wide Web, will actually require
dedicated hardware and software to access their server, located
in Belize).
5. http://www.RGTonline.com
6. Rick Alm, And Today, Gambling Online Could Take Off, THE
KANSAS CITY STAR, February 12, 1996.
7. Dave Mayfield, First Virtual Casino Plans Spring Opening, THE
VIRGINIAN-PILOT, March 26, 1995.
8. Sports International, LTD. Form 10K, Dec. 31, 1994,
9. Jeanne Dugan Cooper, Cyberspace Casino Planning to Accept
Real Bets: Offshore Location Makes it Legal, Operator Claims,
NEWSDAY, March 17, 1995; Internet Casino's business plan
claims 30 million people are currently online, see
http://www.casino.org.
10. Leiby, The Home Gambling Network: It's Illegal, Maybe
Immoral, but is the Cyberspace Casino a Good Bet?,
WASHINGTON POST, February 24, 2995.
11. Dennis Camire and Keith White, Reality May Soon Catch Up
Hype of Internet's Virtual Casinos, GANNETT NEWS SERVICE,
March 2, 1996.
12. Business Plan, Internet Casinos.
13. Rolling Good Times Online.
14. STUDY CONDUCTED BY GAO WEBSITE: www.gao.gov
 LEGAL ISSUES IN
E-GAMBLING : A MAJOR
REVIEW ON U.S.A.

University School of Management Studies,

G.G.I.S.P.U.

SUBMITTED BY:
VARUN BANSAL
 Roll:
05816603909
MBA, 2nd sem, AB

CONTENTS

1. INTRODUCTION

2. REVIEW OF EXISTING LITERATURE

3. RESEARCH METHODOLOGY

4. DATA COLLECTION AND ANALYSIS

5. SUGGESTIONS

6. CONCLUSION

7. REFERENCES