Online Gambling involves placing and receiving bets on sports, casinos, and virtual poker. Unlike physical casinos, online gambling can be done from the comfort of your own home. The downside of this form of gambling is that it can lead to addiction.

There are seven federal criminal statutes that can be cited to prosecute an illegal gambling business. Depending on the crime, the owner of the illegal gambling business could be fined or even imprisoned.

In addition to the seven federal criminal statutes, the United States Travel Act, the Wire Act, and the Illegal Gambling Business Act also regulate gambling. These laws prohibit gambling in interstate commerce.

However, in cases, the Commerce Clause has been challenged on constitutional grounds. The First Amendment guarantees free speech, but the question of whether legislative power under the Commerce Clause is sufficient to lawfully regulate gambling has not been decided.

Section 1956 of the Unlawful Internet Gambling Enforcement Act provides additional legal framework to address illegal gambling in the U.S. It creates several distinct crimes, including laundering with intent to promote illicit activity, evading taxes, and concealing an illegal gambling activity.

The Federal Communications Commission has jurisdiction over common carriers, so the FCC may also impose regulations to stop the leasing of facilities for illegal Internet gambling. The FCC can also suspend the provision of facilities and end the maintenance of those facilities.

In another case, the United States marshals seized $3.2 million from Discovery Communications for accepting ads for Tropical Paradise, a Costa Rican casino operation. The United States v. Nicolaou was a Fourth Circuit decision, which involved a total of five persons at all times in a thirty-day period.