Online gambling is a form of gambling that takes place over the internet. Some forms of online gambling are legal in the United States, while others are illegal.
The most significant piece of legislation affecting gambling in the US is the Federal Information Technology Rules. These rules prohibit illegal activities, such as gambling, in a variety of ways.
There have been many federal actions aimed at regulating Internet gambling, such as the Wire Act, which prohibits the use of the Internet to participate in gambling on sporting events. But most of the legal issues surrounding online gambling have been state-level. State officials are concerned that Internet gambling could allow unauthorized gambling into their jurisdictions.
One of the earliest forms of Internet gambling was multiplayer online poker. Several companies, such as PokerStars and Full Tilt Poker, launched their own versions of multiplayer gaming.
However, in the United States, multiplayer online gambling is still illegal. A Frost & Sullivan report found that revenues from Internet gambling reached $830 million in 1998.
Although the UIGEA is the law of the land, some states have taken their time regulating online gambling. New Jersey was one of the first to offer legal sports betting to its residents. As of 2013, online gambling was not illegal in the Commonwealth of Puerto Rico.
Many states have also passed laws to regulate Internet gambling. In some cases, these laws are more specific than the UIGEA. In Pennsylvania, for example, there is a state-specific license to operate an online gambling business.