Potential risks
Basically, only operators of online gambling sites can
get into trouble if they don’t have licenses. Players
are not actually prohibited to participate in online gambling
games although of course there will be risks to their
money if they choose to play on sites that don’t
have permits.
Another risk that players on online gambling sites that
do not have permits is the fact that their personal information
will be an open book to the operators of the site. If
the site turns out to be bogus, this will pose a great
risk on the player… that is if he has not already
lost his privacy to online hackers which can easily hack
the information.
Only operators
Most states are already quite eager to legalize online
gambling. However, the government is very cautious on
the subject because online gambling sites can be used
by money launderers for their illegal operations.
So far, there is no single law in the Unites States that
deems playing in online casinos illegal. However, the
Wire Act, which is often used or cited in reference to
illegal online gambling has a section which says that
people who are engaged in the business of online gambling
can be fined or imprisoned but the act of course only
covers the individual who presides over the business.
This however was cleared up when the US Supreme Court
refused to review the case of Jay Cohen. The Wire Act,
it seems, does not prohibit Internet gambling. This decision
was upheld by the US Fifth Circuit Federal Appeals Court,
which stated that “the Wire Act concerns gambling
on sporting events or contests…”
One of the bills that are filed in Iowa by James Leach,
inhibits people to gamble online although there is nothing
in the bill that criminalizes the act. Several bills have
in fact been proposed, targeting online wagers and online
gambling. There are however no bills that have so far
targeted the players. It seems that although some would
like to discourage the proliferation of gambling sites
and the participation of people in online gambling, no
one wants to make it a criminal act.
For some states, online gambling per se is illegal but
the letter of the law does not penalize the players but
the perpetrators. A long as players remain only players
in the game and do not act as a bookie, an agent, or an
owner, then there will be no problem with the existing
law. This is of course true with all online games including
online poker.