Federal Law Definition Of Gambling

Posted on 01-05-2021 by admin

Gambling Law: An Overview

Federal Law Definition Of Gambling In Kenya

The term 'unlawful Internet gambling' means to place, receive, or otherwise knowingly transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State or Tribal lands in which the bet or wager is initiated, received,.

Gambling in the United States is a wagering activity offered by the gaming industry. Gambling is legal under US federal law, and each state is free to regulate or prohibit it. If state-run lotteries are included, almost every state can be said to allow some form of gambling. However, casino-style gambling is much less widespread. Gambling does not include fishing derbies as defined by this chapter, parimutuel betting and handicapping contests as authorized by chapter 67.16 RCW, bona fide business transactions valid under the law of contracts, including, but not limited to, contracts for the purchase or sale at a future date of securities or commodities, and agreements.

Gambling, though widespread in the United States, is subject to legislation at both the state and federal level that bans it from certain areas, limits the means and types of gambling, and otherwise regulates the activity.

Congress has used its power under the Commerce Clause to regulate interstate gambling, international gambling, and relations between the United States and Native American territories. For example, it has passed laws prohibiting the unauthorized transportation of lottery tickets between states, outlawing sports betting with certain exceptions, and regulating the extent to which gambling may exist on Native American land.

Each state determines what kind of gambling it allows within its borders, where the gambling can be located, and who may gamble. Each state has enacted different laws pertaining to these topics. The states also have differing legal gambling ages, with some states requiring the same minimum age for all types of gambling, while for others, it depends on the activity. For example, in New Jersey, an 18-year-old can buy a lottery ticket or bet on a horse race, but cannot enter a casino until age 21. Presumably, the age 21 restriction is due to the sale of alcohol in that location.

A standard strategy for avoiding laws that prohibit, constrain, or aggressively tax gambling is to locate the activity just outside the jurisdiction that enforces them, in a more 'gambling friendly' legal environment. Gambling establishments often exist near state borders and on ships that cruise outside territorial waters. Gambling activity has also exploded in recent years in Native American territory. Internet-based gambling takes this strategy and extends it to a new level of penetration, for it threatens to bring gambling directly into homes and businesses in localities where a physical gambling establishment could not conduct the same activity.

Internet Gambling

Federal Regulation

In the 1990s, when the World Wide Web was growing rapidly in popularity, online gambling appeared to represent an end-run around government control and prohibition. A site operator needed only to establish the business in a friendly offshore jurisdiction such as the Bahamas and begin taking bets. Anyone with access to a web browser could find the site and place wagers by credit card. Confronted with this blatant challenge to American policies, the Department of Justice and Congress explored the applicability of current law and the desirability of new regulation for online gambling.

In exploring whether an offshore Internet gambling business taking bets from Americans violated federal law, attention was focused on the Wire Act, 18 U.S.C. § 1084 (2000). The operator of a wagering business is at risk of being fined and imprisoned under the Wire Act if the operator knowingly uses a 'wire communication facility' to transmit information related to wagering on 'any sporting event or contest.' 18 U.S.C. § 1084(a). An exception exists if that act is legal in both the source and destination locations of the transmission. § 1084(b). The Wire Act’s definition of “wire communication facility” appears to embrace the nation's entire telecommunications infrastructure, and therefore probably applies to online gambling. See § 1081.

The Department of Justice maintains that, under the Wire Act, all Internet gambling by bettors in the United States is illegal. U.S. House of Representatives Committee on the Judiciary Hearing on Establishing Consistent Enforcement Policies in the Context of Online Wagers, 110th Cong., Nov. 14, 2007 (testimony of Catherine Hanaway, U.S. Attorney (E.D. Mo.), Dept. of Justice). The Fifth Circuit disagreed, ruling that the Wire Act applies only to sports betting, not other types of gambling. In re MasterCard Int’l Inc., 313 F.3d 257 (5th Cir. 2002).

In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, which made it illegal for wagering businesses to knowingly accept payment in connection with unlawful Internet gambling (though it does not itself make Internet gambling illegal). 109 Pub. L. 109-347, Title VIII (Oct. 13, 2006) (codified at 31 U.S.C. §§ 5301, 5361–67). It also authorizes the Federal Reserve System to create regulations that prohibit financial transaction providers (banks, credit card companies, etc.) from accepting those payments. See 31 U.S.C. § 5363(4). This Act, along with threats of prosecution under the Wire Act from the Department of Justice, has caused several Internet gambling businesses to withdraw from the U.S. market.

In response, House Representatives introduced multiple bills in 2007 to soften federal Internet gambling law. If passed, the Internet Gambling Regulation and Enforcement Act and the Internet Gambling Regulation and Tax Enforcement Act would license, regulate, and tax Internet gambling businesses rather than prohibit them from taking bets from the United States. Alternatively, the Skill Game Protection Act would clarify the Wire Act to exempt certain games such as poker and chess.

State Regulation

In addition to federal measures, some states have enacted legislation to prohibit some types of Internet gambling. In 2006, Washington State amended its Code to make knowingly transmitting or receiving gambling information over the Internet a felony. See Wash. Rev. Code § 9.46.240 (2006). Other states with similar prohibitions have made it a misdemeanor instead. See e.g., 720 ILCS 5/28-1 (2007).

States have not been particularly active in enforcing these laws, possibly due to a conflict with the dormant Commerce Clause doctrine. That doctrine theorizes that state law applying to commerce outside the state’s borders is unconstitutional because that power lies with federal, not state, government. In particular, federal preemption has obstructed states’ attempts to regulate gambling activity on Indian reservations within state borders. See Missouri ex rel. Nixon v. Coeur D’Alene Tribe, 164 F.3d 1102 (8th Cir. 1999). The federal Indian Gaming Regulatory Act, 25 U.S.C. § 29 (2000), governs gambling activity on Indian reservations, but the extent to which it and other federal gambling laws preempt state action in the Internet arena is uncertain.

menu of sources

Federal Material

U.S. Constitution and Federal Statutes

U.S. Code: Title 15, Chapter 24: Transportation of Gambling Devices
U.S. Code: Title 15, Chapter 57, Interstate Horseracing
U.S. Code: Title 18, Chapter 50: Gambling
U.S. Code: Title 18, Chapter 61: Lotteries
18 U.S.C. §1953 (Interstate Transportation of Wagering Paraphernalia Act)
18 U.S.C. §1955 (Illegal Gambling Business Act of 1970)
25 U.S.C. §§2701-2721 (Indian Gaming Regulatory Act)
U.S. Code: Title 28, Chapter 178: Professional and Amateur Sports Protection
Code of Federal Regulations: Title 25, Chapter 3: National Indian Gaming Commission, Department of the Interior
Proposed Internet Gambling Prohibition Act of 1997 (not passed)

Federal Judicial Decisions

Greater New Orleans Broadcasting Association, Inc. v. United States, 527 U.S. 173 (1999)
Ratzlaf v. United States, 510 U.S. 135 (1994)
Chickasaw Nation v. United States, 534 U.S. 84 (1999)

State Material

Other References

'14 Charged in Internet Betting' (Washington Post, March 5, 1998)

This page is dedicated to providing information on the Alabama Gambling Laws and Alabama Online Gambling Laws which govern gambling activity for AL residents. We try to assist players by providing as much information as possible, however, it is your responsibility to understand the law prior to engaging in any online gambling activity. We are strong advocates of responsible gambling, and thus want to do everything we can to help you to be ‘in the know’ and well informed so that you are equipped with the knowledge you need to make wise decisions regarding your gambling behaviors. Alabama online gambling can be an enjoyable and safe form of entertainment if players are careful to selectively participate only in legal, licensed and regulated gambling operations.

Other Alabama Gambling Pages

The Definition of Gambling In Alabama

Alabama gambling laws define gambling as the risking or staking something of value on the result of a contest of chance or on the outcome of a future contingent event not under the control of that person upon an understanding or agreement that he or someone else will receive something of value in case of a specific outcome. This definition of gambling is large enough to cover poker and casino gambling.

What Types Of Gambling Activity Are Illegal In Alabama

Alabama gambling law does not make an exception for persons who engage in an illegal gambling activity merely as players. Knowingly advancing or profiting from an illegal gambling activity as a player can result in the charge of simple gambling, a Class C misdemeanor. Advancing a gambling activity includes materially aiding the gambling activity through creation or establishment of a game, playing or conducting the game or having anything to do with a place that is used for an illegal gambling activity. Possession of a gambling device is illegal in AL. The definition of a gambling device is very broad and can include virtual chips and even the laptop used for online gambling if participating in an illegal operation. Not all forms of gambling are illegal in Alabama. The state gambling law provides certain exceptions in the form of regulated gambling. There are also licensed, certified and regulated online gambling options which are located outside of the United States and welcome players from AL and the US in general as participants in their gambling offerings. Because they accept players from Alabama, they are often referred to as Alabama online sports betting sites, casinos, poker rooms and bingo halls.

Alabama Poker Gambling Laws

Courts in Alabama have repeatedly rejected the argument that poker is a game of skill. But home poker games are legal subject to certain conditions. It must be:

a social game and
played in private place

Such home poker games will qualify under the social gambling exception. The game must not be operated for financial gain – the house cannot rake the pot or charge the players. All players must be at least 18 years old.

While we did not find any land based poker rooms or poker options at the Indian Tribe casinos located in the state, we are aware of multiple legally licensed and regulated Alabama poker rooms located outside of the United States. These websites are operated within licensing jurisdictions which have made online gambling legal, hence they are not considered to be illegal gambling operations and can legally accept USA players. These sites are a safe and reliable option for poker players in Alabama.

Pari-Mutuel Gambling Laws In Alabama

Pari-mutuel wagering is legal in Alabama. In 1971 the state legalized pari-mutuel wagering at horse and dog racetracks. Presently there are four dog racing tracks in the state. One of them is classified as a racino and has slot machines. In 1980, the state legalized charitable bingo.

Alabama Land Based And River Boat Gambling Laws

Alabama does not have any land-based casinos other than the ones on Indian reservations. You will find information about these casinos listed at the bottom of our Alabama online casinos page. At present, there are four such Indian casinos in the state. These casinos are owned and managed by Indian tribes under the provisions of the Indian Gaming Regulatory Act. There are riverboat casinos in Alabama. But the games on offer at such casinos are limited. They mainly offer machine gambling. Slot machines and bingo are the two most common casino games in the state. The state gambling law makes table games illegal under most circumstances. None of the riverboat casinos offer poker.

Alabama Bingo Gambling Laws

Charitable bingo is legal in some counties in Alabama. In counties where it is legal, many establishments started offering slot machines as a form of bingo in an attempt to circumvent the state gambling law. In fact, one county went on to pass an ordinance defining bingo is a broad sense to include slot machines. The State Supreme Court in 2010 struck down the definition of bingo under the ordinance and as a result, today slot machines do not come under the definition of bingo. For players who are interested in Alabama online bingo gambling, there are a handful of legal, licensed and regulated bingo halls which are operated outside of the United States and which provide legal online bingo games, chat games, and casino side games to players in the U.S.A.

Laws Concerning AL Lottery Options

Alabama does not have a state lottery. The state, however, did make an attempt to legalize the lottery. In 1999 with strong backing from the then state governor, the state held a referendum on whether or not to introduce a state lottery. The pro-lottery forces highlighted the revenues that can be raised from lottery sales and how it could be used for education. They also emphasized the need to keep the gambling money from flowing into other states – Georgia (lottery) and Mississippi (casinos). In a surprisingly high voter turnout, the lottery was turned down by 10 percentage points.

The Legality Of Online Gambling Regulated By The State Of Alabama

The state of Alabama has not made any attempts to legalize or regulate state-based online poker or online casino gambling. It is illegal to operate any type of online gambling website within the state of Alabama. State law does not prohibit Alabama residents from accessing and participating in real money betting at legally licensed, compliance certified and legitimately regulated online gambling sites that are located outside of the United States.

Federal Laws Concerning Alabama Online Gambling

Playing online poker or casinos games for money is not illegal under Federal laws. There are three federal laws which deal with online gambling: the Federal Wire Act, the Professional and Amateur Sports Protection Act (PASPA), and the Unlawful Internet Gambling Enforcement Act (UIGEA). None of these laws prohibits or criminalizes online gambling for USA players who participate in legally licensed and regulated gambling sites that are located outside the United States. PASPA and the Federal Wire Act only apply to US-based sports betting and have no bearing on legally sanctioned offshore gambling sites. The UIGEA does not apply to players of online gambling but rather targets gambling site operators and payment processors to ensure they follow the regulatory oversight that the law requires of them. You can learn more about federal laws by visiting our page about United States Online Gambling Laws.

Alabama Gambling Laws

Players who are interested in reviewing the official laws and statutes surrounding gambling in the state of Alabama can visit the Alabama Legislative Information System Online to view the documentation in its original language and context.

This page is for informational purposes only and is not a definitive resource for determining what activity is legal or illegal. If you have questions or concerns, we recommend that you contact a lawyer or other professional expert who could assist you in the interpretation of state laws.

Alabama Gambling Laws FAQs

How can I avoid a “simple gambling” Class C misdemeanor in Alabama?

A Class C misdemeanors of “simple gambling” can be avoided by understanding the legal situation regarding the company with which you are placing your bets. A person cannot legally open and license a gambling institution of any kind that deals with games of chance as per the Alabama state constitution. Even the casinos that are legally licensed on Indian reservations are heavily regulated and cannot offer table games like poker and blackjack. As long as you are using a website that is run by a company that is located physically outside of the United States and within proper licensing requirements of the regulatory bodies of their home countries, you will not be arrested and charged with this Class C misdemeanor.

Can I have my laptop taken from me as a “gambling device” if I gamble online?

No, your laptop can only be deemed a “gambling device” if you have used it to place bets with illegal online entities. There are numerous online gambling websites that operate completely legally within the industry and are well regulated and within the laws for residents of AL. The online gambling sites featured in this guide are among the top rated destinations for Alabama residents.

Can I still gamble on poker in private settings with my friends?

Yes, although poker has been repetitively deemed a game of chance and is therefore illegal by state law, private games of poker between friends is still legal. In order to stay within legal limits, you must make sure that the primary function of the game remains social, and the game itself is played in a private setting. There is a “social gambling” exception to the law that allows these games to still take place. In order to qualify for that exemption, the games must not be run for financial gain of any sort.

Are there any legal gambling destinations in Alabama?

Yes, there are several casinos located on Indian reservations and riverboats that offer the casino experience. There are also various horse and dog tracks that have been allowed to persist because betting on horses and dogs have been deemed a “game of skill” by the state of Alabama. We always insist you check the legality of anywhere you are planning on placing bets, especially if they have a low customer base.

What types of state-based gambling are legal in Alabama?

The state legalized pari-mutuel gambling at dog and racetracks in 1971. Pari-mutuel gambling is a form of gambling where instead of betting against the house, you are gambling against other players who have taken the opposite bet. In 1980, the state also legalized charitable bingo. As long as a certain percentage of the proceeds goes to charity these “games of chance” have been given an exemption to the rule. As mentioned above, there are also various casinos and bingo halls within the state as well. It is also legal for state residents to enjoy licensed, offshore online gambling as well.

Bingo Is legal in my county, is it legal all over Alabama?

Charitable bingo was made legal in 1980 but only for some counties. The default opinion of the state is that Bingo is still a game of chance and is therefore still widely illegal, although in the case of some counties it has been exempted based on charitable causes. We recommend you check with the county laws in your region before participating in such activities. This law only applies to state-based bingo gambling, and not Alabama online bingo that takes place at licensed offshore bingo sites.