The question of legality when it comes to online gaming can be problematic and can change with the political winds.  In the case of Washington State (US), online gaming is considered a Class C felony.  Such crimes typically carry a maximum penalty of a ten-thousand-dollar fine and/or five years in prison!  Within the European Union, many nations have attempted to legislate, regulate, tax and create a safer environment for online players.

For the US, the strict rules against online gaming can be traced back to the years before the Internet as we know it came to be.  The Interstate Wire Act of 1961 was put into place to stop sports bettors and horse players from making illegal bets by phone.  Some government agencies, including the US Department of Justice, have created the policy that any form of electronic communication (land-line phones, cell phones, internet, etc.) used to place any bet is inherently illegal.  While the US Fifth Circuit Court of Appeals ruled in February, 2001, that the Wire Act only applies to sports betting (http://www.gamblingandthelaw.com/columns/73_IG_Credit_Card_Case.htm), the US Supreme Court has yet to rule on the case.

Another hurdle that US-based players face in online gaming is the Unlawful Internet Gambling Enforcement Act of 2006 (http://en.wikipedia.org/wiki/UIGEA#Internet_gambling_provisions).  This act, tacked on to a port security law on midnight the day before the US Congress adjourned, prohibits financial institutions (such as banks and credit card companies) from making funds transfers to online gaming sites.  In response to this new law, numerous online gaming sites (including PartyPoker.com) closed the accounts of all US-based customers and refused to take on new customers from US-based addresses.

In stark contrast to the draconian measures of US law is the more tolerant approach of the EU member nations.  Many of these countries see a better approach in regulating and overseeing online gaming operations rather than forcing them to the shadows.  While most sites that accept US-based customers claim to carry some form of oversight from native Canadian tribes or offshore island governments, EU member nations have strict licensing criteria for online gaming sites and engage in a stronger level of enforcement.  After the forced withdrawal of US-based customers, many online gaming sites have flourished with the addition of customers from Scandinavia, Germany, Ireland and Eastern Europe.

For most players, the act of placing a bet on an online slot machine or playing a few hands of pot-limit Omaha poker is not viewed as an illegal activity.  Numerous law enforcement agencies have complained about the inherent logistical problems of enforcing such statutes.  The burden of enforcement comes from the “supply” end of the transaction (the online gaming sites) instead of the “demand” end (the players).

“Is online gaming legal?”  The answer to that question varies from place to place.

“Do I risk arrest or jail time by playing online?”  In most cases, the answer is, “No”.