The legal aspect of online gaming therefore depends not only on the online casino that has been licensed and registered to a specific jurisdiction; it also depends on the laws governing online gaming in the country of the gambler. North America, specifically Quebec in Canada has the Kahnawake Gaming Commission. This organization licenses a large number of online casinos and charges some $15,000 plus an annual license fee of $10,000.

The USA as a case in point

The most contentious country with respect to legality is the USA. With so much hype around measures such as the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 and the Wire Act of 1961, these concerns are fully validated. However the wording of these laws in the USA has led to even more questions. For online casinos, the USA represents a significant part of the market and these online companies are lobbying for measures aimed at easing the strict regulation currently in place.

As it stands the 1961 law has been interpreted by some, including the Department of Justice to mean that all online gambling is illegal. Subsequently US Courts have ruled against that. When the wording is further scrutinized, many are of the opinion that the phrase “in the business of” means only businesses are affected, not gambling customers. And yet others feel that the law only covers sports betting, and not other forms of gambling such as poker. Indeed the US Fifth Circuit Court of Appeals ruled that the Wire Act does indeed apply to sports betting and not to online gambling.

As a result of the UIGEA, many online gaming operations registered outside of the US ceased their operations in US cyberspace especially following the Kentucky state seizures of domain names in 2008. But there are moves to liberalize online gaming activity, and Representative Barney Frank (D- Mass) is fighting to overturn the ruling. The reason being is that such measures impinge on the universal freedoms of Americans to engage in their preferred form of entertainment.

Online gaming has always been shrouded in issues of the legality of its actions. While it cannot be unequivocally stated what the end status of online gaming, especially in the United States, will be, there are several encouraging moves in the pipeline suggesting an easing of current US restrictions on this global enterprise.

The EU and the USA

In the case of the European Union, EU officials have taken a pro-online gambling position. Several member states have even attempted to legislate on online gaming activity. Banning online gaming is generally prohibited and is contrary to EU law, which must feature conformity across the Union.

In the United States several attempts have long been made to legislate against online gambling. These attempts have often been made on a state-by-state basis, focusing on different regulation regarding online gambling.

Card playing

Much can be credited to the China of old. Owing to the fact that the Chinese used paper currency, it is said that they had much experience shuffling paper money in 900 A.D – a possible prelude to card shuffling. Many cultures and religions can lay claim to adding their contribution to card playing. It is not only the Chinese, Japanese, Indians, Greeks, Egyptians and Romans who were actively involved in gambling, but many other nations along the way.

Twists and Turns

Throughout history gambling has gone through periods of regulation, prohibition and close scrutiny. King Henry – an avid gambler – banned gambling; Native Americans embraced gambling; Revolutionary Americans played federal lotteries but gambling survived and always prospered. Today the USA lays claim to Nevada and Atlantic City among others and indeed the world sports many bricks and mortar casinos.

Online gambling gains traction

The e-boom of the 1990s gave rise to online gambling. By 1994 Antigua and Barbuda passed the Free Trade and Processing Act which essentially legislated to allow gambling licenses. Soon thereafter Microgaming was born – a world leader in hi-tech leading gaming software for poker rooms and casinos. As early as 1995 Microgaming’s Gaming Club opened and in 1996 InterCasino was launched as was the Kahnawake Gaming Commission in Canada. The latter regulates online gaming from the Mohawk territory of Kahnawake.

The late 1990s were marked by strong revenue growth in the industry. And around the same time, Intertops became the first online sports book, licensed under the gaming laws of Antigua. Today they cater to tens of thousands of daily wagers in almost 200 countries. Of all the online gaming attractions, online Poker is tops. Party Poker, Full Tilt Poker, PokerStars and other notable brands have become household names in this big-revenue industry. Many of these companies list on leading stock exchanges where they trade as blue-chip enterprises.

Amidst ongoing moves towards regulation and the USA’s Unlawful Internet Gambling Enforcement Act (UIGEA), online gaming is still in flux. While the US market has limited participation via payment processors to outside and unregulated online casinos, the world market for e-gaming is growing at a healthy rate. eCOGRA provides for safe online gaming practice and there are moves to regulate gaming in the USA. Such measures could generate much-needed tax-revenues and greater control over the industry. Big name operators such as 888 Holdings, William Hill, Bwin and Playtech are navigating the waters and operate under European and other licensed operators. The industry is expected to generate in excess of $20 billion by 2010.

The future of online gambling is already here, with online casinos of all creeds and colors. Now you’re invited to read about the history of the games.