{ "id": "R44680", "type": "CRS Report", "typeId": "REPORTS", "number": "R44680", "active": true, "source": "EveryCRSReport.com", "versions": [ { "source": "EveryCRSReport.com", "id": 587564, "date": "2016-11-07", "retrieved": "2020-01-02T15:14:42.975407", "title": "Internet Gambling: Policy Issues for Congress", "summary": "Gambling, once widely outlawed, is now a regulated, taxed activity that is legal in some form\u2014bingo, card games, slot machines, state-run lotteries, casinos, and even online\u2014in all states except Hawaii and Utah. Like so many other industries, the gambling industry is being transformed by technology that has begun to shift patronage from casinos, bingo halls, or stores selling lottery tickets to desktop computers and tablets connected to the Internet and to mobile devices that may communicate by telephone or direct satellite links. According to one private estimate, annual revenue in the global Internet gambling market, less gamblers\u2019 winnings, is around $50 billion. \nState governments have the main responsibility for overseeing gambling. Congress, however, historically has played a key role in shaping the industry. The Unlawful Internet Gambling Enforcement Act (UIGEA; P.L. 109-347) of 2006 prevents payments to illegal gambling-related businesses, but does not outlaw all forms of Internet gambling. In December 2011, a Department of Justice (DOJ) interpretation of the 1961 Wire Act (18 U.S.C. \u00a71084), which has been used to prosecute Internet gambling, authorized states to allow online gambling, except for sports betting. As a result, states and Indian tribes are allowed to permit Internet gambling within their territory if certain conditions are met. \nWith the increasing interest in online gambling, debate over the appropriate federal role has become more prominent. A survey by the American Gaming Association reported that 4% of U.S. adults who gambled in 2014 did so over the Internet. Currently, a majority of states allow Internet betting on horse racing, and a few now permit Internet lottery games. A number of Indian tribes and gaming companies have created entities to develop Internet gambling, and seem likely to expand them rapidly if the legal issues are clarified. Delaware, Nevada, and New Jersey have implemented online gambling programs within their borders. Several more states are considering whether to legalize Internet gambling, although some have laws that expressly prohibit online gambling. A growing number of states have taken a legislative interest in new forms of online gaming, such as daily fantasy sports. \nThe gambling industry is divided over Internet gambling. Some companies and Indian tribes see it as a promising revenue source. Others fear loss of patronage at brick-and-mortar casinos. One bill introduced in the 114th Congress, H.R. 2888, would allow online poker, overseen by a new Office of Internet Poker Oversight in the Department of Commerce. An opposing group that also includes prominent casino owners, the Coalition to Stop Internet Gambling, supports the Restoration of America\u2019s Wire Act (H.R. 707, S. 1668), which would prohibit the use of communications networks to gamble over the Internet. Another bill, S. 3376, would prohibit financial institutions from processing Internet gambling transactions. Perhaps reflecting divisions within the gambling industry, Congress has not acted on any of these proposals. 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