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Here's the GAO's take on the problem
'''Internet gambling''' is an essentially borderless activity that poses regulatory
and enforcement challenges. The legal framework for regulating it in the
[[United States]] and overseas is complex. U.S. law as it applies to Internet
gambling involves both state and federal statutes.
In general, gambling is
regulated at the state level, with each state determining whether
individuals can gamble within its borders and whether gaming businesses
can legally operate there. Five states (Illinois, Louisiana, Nevada, Oregon,
and South Dakota) have enacted laws that specifically prohibit certain
aspects of Internet gambling, but laws in other states that prohibit some
types of gambling activities generally apply to Internet gaming as well.
Federal law recognizes that state laws vary and seeks to ensure that
neither interstate nor foreign commerce is used to circumvent them. [http://www.gao.gov/new.items/d0389.pdf]
and enforcement challenges. The legal framework for regulating it in the
[[United States]] and overseas is complex. U.S. law as it applies to Internet
gambling involves both state and federal statutes.
In general, gambling is
regulated at the state level, with each state determining whether
individuals can gamble within its borders and whether gaming businesses
can legally operate there. Five states (Illinois, Louisiana, Nevada, Oregon,
and South Dakota) have enacted laws that specifically prohibit certain
aspects of Internet gambling, but laws in other states that prohibit some
types of gambling activities generally apply to Internet gaming as well.
Federal law recognizes that state laws vary and seeks to ensure that
neither interstate nor foreign commerce is used to circumvent them. [http://www.gao.gov/new.items/d0389.pdf]