Causes Of Unlawful Gambling Enforcement Act

1211 Words 5 Pages
In the year 2000, Americans gambled away over two billion dollars over the internet (Hammer). The internet brings the unimaginable into a virtual reality. Although Americans utilize the internet as a source of communication, they use the complex system for entertainment purposes. One of the most dangerous and controversial form of entertainment on the internet narrows down to online gambling websites. On and off, online gambling websites have been legal and illegal. In 2006, Congress issued the Unlawful Gambling Enforcement Act, which abolished all forms of non-sport betting activities over the internet (Bachus, “Leads To Crime”). Congress used an old law, Wire Act of 1961, to combine with the gamble-banning law (Bachus, “Leads To Crime”). …show more content…
For instance, hackers use online gambling websites to their advantage by creating software to obtain other people’s winnings (Woollaston). The action of hacking shows an example of cybercrime. Criminals also launder money across distant locations through the websites (Pataki). They can do this transition by the poker “money mule” method (Pataki). Pataki illustrates the idea of a money mule as “a person hired by a terror or criminal organization to open a bank account and Internet poker account under a legitimate identity.” Another person playing against the money mule will show him his cards and the challenger purposely loses the money (Pataki). This money gets transferred into the mule’s bank account and used to fund criminal or terrorist groups (Pataki). Money laundering falls under of one of many criminal activities. Outside the United States and after the Unlawful Gambling Enforcement Act, offshore online casinos arose (Goodman). Goodman reveals “the U.S. Department of Justice (DOJ) unsealed sweeping indictments against the online poker industry’s Big Three—PokerStars, Full Tilt Poker and Absolute Poker.” Goodman confirms the charges of “The companies, all located offshore, were hit with a raft of charges, including wire fraud, bank fraud, money laundering and operating in the U.S. in willful violation of the Unlawful Internet Gambling Enforcement Act (UIGEA).” In result, Virginia Seitz, an assistant attorney general, showed the because of the actions of the companies and the Wire Act of 1961, all forms of online non-sport betting should have a federal ban (Goodman). The Department of Justice said people involved with online gambling linked cyber criminal activities are virtually anonymous (Bachus, “Leads To Crime”). Continuing their testification, the department of justice said the people in the operations do not only launder money, but they can commit tax evasion, or the avoiding of

Related Documents