	Introduction

Gambling, once widely outlawed, is now a heavily regulated, taxed activity that is legal in some form in all states except Hawaii and Utah. While state governments have the main responsibility for overseeing gambling, Congress historically has played a significant role in shaping the industry. Like so many other industries, the gambling industry has been transformed by developments in computing and telecommunications. Delaware, Nevada, and New Jersey are the only states that currently allow intrastate Internet gambling. According to one private estimate, annual gross global revenue from online, television, and mobile gambling is now around $50 billion, and is forecast to exceed $65 billion by 2021 (see Figure 1 ). An American Gaming Association (AGA) survey showed that 4% of U.S. adults who gambled in 2014 did so over the Internet. Debate over the appropriate federal role has become more prominent with the increasing interest in online gambling. Other casino owners disagree, seeing Internet gambling as a potentially significant new revenue source and a possible complement to land-based casino operations. 109-347 ). However, UIGEA does not outlaw any specific types of gambling over the Internet and allows states and tribes to permit Internet gambling within their borders if they apply certain safeguards. While UIGEA included exceptions for certain intrastate and tribal Internet gambling operations, including state lotteries and Indian casinos, it did not clarify the scope of older laws that DOJ has used to prosecute Internet gambling, such as the Wire Act. A number of states and tribes have taken advantage of the DOJ memo to allow online betting on horse races and Internet lotteries. Internet gambling is also regulated in the U.S. Virgin Islands, another tiny Internet gambling market. And some states, such as Washington, expressly prohibit Internet gambling, including online fantasy sports wagering. Illinois's lottery privatization has not been smooth. (For more on daily fantasy sports, see " Sports Betting " below.) A bill introduced in the 114 th Congress, H.R. The Sports Gaming Opportunity Act ( H.R. This bill would not make online games themselves illegal, but rather would prohibit use of the communications network to play games like poker or bingo over the Internet, restoring the original interpretation of the Wire Act. The Coalition to Stop Internet Gambling supports these bills. S. 3376 , introduced in September 2016, would prohibit financial institutions from processing Internet gambling transactions, and it aims to overturn the Department of Justice's 2011 memorandum, which interpreted the Wire Act as applying only to sports gambling and not to other forms of online gambling, including casinos and poker. 2888 ), would allow a state or tribal gambling oversight commission approved by a new Office of Internet Poker Oversight in the Department of Commerce to license online poker sites only. In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA), which prevents payments to illegal gambling-related businesses but does not outlaw all forms of Internet gambling.
Gambling, once widely outlawed, is now a regulated, taxed activity that is legal in some form—bingo, card games, slot machines, state-run lotteries, casinos, and even online—in all states except Hawaii and Utah. Like so many other industries, the gambling industry is being transformed by technology that has begun to shift patronage from casinos, bingo halls, or stores selling lottery tickets to desktop computers and tablets connected to the Internet and to mobile devices that may communicate by telephone or direct satellite links. According to one private estimate, annual revenue in the global Internet gambling market, less gamblers' winnings, is around $50 billion.
State governments have the main responsibility for overseeing gambling. Congress, however, historically has played a key role in shaping the industry. The Unlawful Internet Gambling Enforcement Act (UIGEA; P.L. 109-347) of 2006 prevents payments to illegal gambling-related businesses, but does not outlaw all forms of Internet gambling. In December 2011, a Department of Justice (DOJ) interpretation of the 1961 Wire Act (18 U.S.C. §1084), which has been used to prosecute Internet gambling, authorized states to allow online gambling, except for sports betting. As a result, states and Indian tribes are allowed to permit Internet gambling within their territory if certain conditions are met.
With the increasing interest in online gambling, debate over the appropriate federal role has become more prominent. A survey by the American Gaming Association reported that 4% of U.S. adults who gambled in 2014 did so over the Internet. Currently, a majority of states allow Internet betting on horse racing, and a few now permit Internet lottery games. A number of Indian tribes and gaming companies have created entities to develop Internet gambling, and seem likely to expand them rapidly if the legal issues are clarified. Delaware, Nevada, and New Jersey have implemented online gambling programs within their borders. Several more states are considering whether to legalize Internet gambling, although some have laws that expressly prohibit online gambling. A growing number of states have taken a legislative interest in new forms of online gaming, such as daily fantasy sports.
The gambling industry is divided over Internet gambling. Some companies and Indian tribes see it as a promising revenue source. Others fear loss of patronage at brick-and-mortar casinos. One bill introduced in the 114th Congress, H.R. 2888, would allow online poker, overseen by a new Office of Internet Poker Oversight in the Department of Commerce. An opposing group that also includes prominent casino owners, the Coalition to Stop Internet Gambling, supports the Restoration of America's Wire Act (H.R. 707, S. 1668), which would prohibit the use of communications networks to gamble over the Internet. Another bill, S. 3376, would prohibit financial institutions from processing Internet gambling transactions. Perhaps reflecting divisions within the gambling industry, Congress has not acted on any of these proposals. No legislation affecting Internet gambling has been enacted since UIGEA.