US Government
Stand No Chance against Online Casinos
To gamble in online casinos is allowed in over 80 different
countries, but in the United States, any form of playing in
online casinos is still considered as an illegal activity.
However, this doesn't stop the Americans from wagering on
offshore online casinos. The expectations are that in 2006, the
Americans will lose more than $7.2 billion while playing in
online casinos, which is almost half of the total amount of $15
billion of lost wagers. The US government is trying to stop the
Americans from betting in online casinos, unfortunately without
much success until now…
There are over 2,100 online casinos available on the internet,
and their numbers are growing everyday. If playing in online
casinos will keep on being as popular as now, the internet
gambling revenues are expected to reach $24 billion in 2010.
Especially popular is wagering on sport events. This weekend
it's predicted that more than $100 million will be wagered in
online casinos on National Football League playoff games. The
Super Bowl will even top this amount, and their wagering bets
are estimated at $400 million. . About 200 online casinos take
bets for sports events.
The Justice Department is trying to make clear to the Americans
that betting in online casinos is illegal and the players are
breaking the law if they play here. However, the Justice
Department admits that the online casinos that operate outside
the US are not breaking the laws and they shouldn't be held
responsible. Up until now, the Justice Department had only one
successful criminal prosecution concerning an online gambling
case.
In 1998, the federal government got its first and only major
online gambling conviction in a case against Jay Cohen, a
businessman from California, who operated a licensed online
casino on Antigua. In 1997, Cohen and some friends started an
online casino here that took bets on sports events in the United
States. Cohen fought the charges, since he believed that federal
laws didn't apply to his offshore casino, since it was regulated
and licensed in Antigua.
According to government officials, the laws for online casinos
are sufficient and even though old, still applicable to the
situation now. The US government bases the fact that online
gambling is illegal, on an almost fifty years-old law, the 1961
Wire Act, which was originally created to prohibit phone
betting. In February 2000, Cohen was convicted and he lost his
following appeals. He went to prison for 17 months and he made
parole in a halfway house in Vegas. Ever since Cohen, no
convictions were made based on online gambling.
The president of the American Gaming Association and national
spokesperson of brick and mortar casinos, Frank Frahrenkopf,
doesn't believe that the state will find a way to ban online
casinos. According to Frahrenkopf, the government gave up this
fight long ago, knowing that there was nothing to do about
people logging in on their own personal computers and playing in
online casinos.