Using the Internet to facilitate gambling is unlawful under the Wire Act. In addition, it is illegal to use the Internet for gambling on sporting events, contests, or games of chance.
There are seven federal criminal statutes aimed at preventing illegal Internet gambling. In addition to the Wire Act, these statutes include the Travel Act, the Unlawful Internet Gambling Enforcement Act, and Racketeer Influenced and Corrupt Organizations (RICO) provisions. In addition, state officials have expressed concern that the Internet could be used to facilitate unlawful gambling.
In United States v. K23 Group Financial Services, the United States charged Internet poker operators with violations of 18 U.S.C. 1955. In this case, the gambling business was conducted by five or more persons. The owners of the illegal gambling business were convicted of the crime, and they were fined. In addition, the Federal Communications Commission had to discontinue providing, leasing, or furnishing the facilities. In addition, the owners were subject to up to five years in prison.
There are also several statutes aimed at money laundering. Section 1956 prohibits laundering proceeds from illegal gambling. In addition, the Act provides that a person may not spend more than $10,000 on illegal gambling at one time. In addition, Section 1956 provides that money laundering occurs when laundering proceeds is used to conceal or disguise the proceeds of an illegal gambling activity. In addition, Section 1956 provides that it is a crime to engage in laundering for international purposes, money laundering for law enforcement stings, and laundering with the intent to promote illicit activity.