Undeterred by murky federal law and emboldened by a trade ruling, at
least three states are edging toward legalizing online gambling, and
Great Britain is on the verge of permitting its land-based casinos to
take bets online from U.S. citizens.
Those are the latest assault on thefederal Wire Act of 1961, which
bans use of telephones to place sports bets. U.S. lawmakers have
struggled for a decade to update the law, hoping to restrain the
fast-growing, $10 billion-a-year Internet gambling industry.
Legal experts say that the act is narrow and hard to enforce and
that it does not specifically ban casino games. The vague law has
prompted online gaming overtures from:
•States Lawmakers say they are confident proposed legislation will
not violate federal law, and they are willing to defend themselves in
court.
"No one wants tax increases. This is a legitimate revenue maker,"
says North Dakota state Rep. Jim Kasper, R-Fargo. He introduced
legislation that would allow Internet poker sites to operate inside
the state. It has passed the House.
Kasper says legalized Internet poker could bring in millions
through taxes and fees. North Dakota's constitution would have to be
amended, he says. The state attorney general's office, which would
regulate sites, last week received a letter from the Justice
Department reiterating the federal ban on all Internet gambling.
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