This is examination of principal federal criminal laws implicated by Internet gambling and of a few of the constitutional questions associated with their application. In very general terms, it is a federal crime (1) to use wire communications to place or receive bets or to transmit gambling information relating to sporting contests or events; (2) to conduct a gambling business in violation of state law; (3) to travel interstate or overseas, or to use any other facility of interstate or foreign commerce, to facilitate the operation of an illegal gambling business; (4) to conduct a gambling business and accept payment for illegal Internet gambling participation; (5) to systematically commit these crimes in order to acquire or operate a commercial enterprise; (6) to launder the proceeds of an illegal gambling business or to plow them back into the business; (7) to spend or deposit more than $10,000 of the proceeds of illegal gambling in any manner; or (8) to conspire with others, or to aid and abet them, in their violation of any of these federal laws. Offenders are subject to imprisonment for not more than two years and/or a fine of the greater of not more than twice the gain or loss associated with the offense or $250,000 (not more than $500,000 for organizations).They may also have their telephone service canceled at law enforcement request, and conduct that violates the Wire Act may help provide the basis for a prosecution under the money laundering statutes, the Travel Act, the Illegal Gambling Business Act, RICO, or the Unlawful Internet Gambling Enforcement Act. Illegal Gambling Business Act

Section 1955, which outlaws conducting an illegal gambling business, appears on its face to reach any illegal gambling business conducted using the Internet. Commentators seem to concur. And they have noted that "numerous cases have recognized that 18 U.S.C. Illegal gambling is at the threshold of any prosecution under the section, and cannot to be pursued if the underlying state law is unenforceable under either the United States Constitution, or the operative state constitution. Unlawful Internet Gambling Enforcement Act (UIGEA)

The Wire Act, the Illegal Gambling Business Act, and the Travel Act implicitly outlaw Internet gambling and related activity. The Unlawful Internet Gambling Enforcement Act (UIGEA) does so explicitly. Compliance with the various federal gambling laws remains a condition, 31 U.S.C. Racketeer Influenced and Corrupt Organizations (RICO)

Illegal Internet gambling may trigger the application of federal racketeering (RICO) provisions. 1084 (Wire Act), 18 U.S.C. 1952 (Travel Act), 18 U.S.C. Any property involved in a violation of either section is subject to the civil and criminal forfeiture provisions of 18 U.S.C.
This is a summary of the federal criminal statutes implicated by conducting illegal gambling using the Internet. Gambling is primarily a matter of state law, reinforced by federal law in instances where the presence of an interstate or foreign element might otherwise frustrate the enforcement policies of state law. State officials and others have expressed concern that the Internet may be used to bring illegal gambling into their jurisdictions.
Illicit Internet gambling implicates at least seven federal criminal statutes. It is a federal crime (1) to conduct an illegal gambling business under the Illegal Gambling Business Act, 18 U.S.C. 1955; (2) to use the telephone or telecommunications to conduct an illegal gambling business involving sporting events or contests under the Wire Act, 18 U.S.C. 1084; (3) to use the facilities of interstate commerce to conduct an illegal gambling business under the Travel Act, 18 U.S.C. 1952; (4) to conduct the activities of an illegal gambling business involving either the collection of an unlawful debt or a pattern of gambling offenses, the Racketeer Influenced and Corrupt Organizations (RICO) provisions, 18 U.S.C. 1962; (5) to launder the proceeds from an illegal gambling business or to plow them back into such a business under money laundering provisions of 18 U.S.C. 1956; (6) to spend more than $10,000 of the proceeds from an illegal gambling operation at any one time and place under the money laundering provisions, 18 U.S.C. 1957; or (7) for a gambling business to accept payment for illegal Internet gambling under the Unlawful Internet Gambling Enforcement Act (UIGEA), 31 U.S.C. 5361-5367.
Enforcement of these provisions has been challenged on constitutional grounds. Attacks based on the Commerce Clause, the First Amendment's guarantee of free speech, and the Due Process Clause have enjoyed little success. The commercial nature of a gambling business seems to satisfy doubts under the Commerce Clause. The limited First Amendment protection afforded crime facilitating speech encumbers free speech objections. The due process arguments raised in contemplation of federal prosecution of offshore Internet gambling operations suffer when financial transactions with individuals in the United States are involved.
This report is an abridged form, without footnotes, full citations, or supplementary material, of CRS Report 97-619, Internet Gambling: Overview of Federal Criminal Law. Related CRS reports include CRS Report RS22749, Unlawful Internet Gambling Enforcement Act (UIGEA) and Its Implementing Regulations, and CRS Report R41614, Remote Gaming and the Gambling Industry.