France has recently proposed new laws to regulate and tax online gambling. According to the budget minister, Eric Woerth, the move would ensure that the gambling market in France adapted to the “Internet reality.” However, it is not clear what will happen to betting exchanges. The US Department of Justice says it will continue to pursue its existing laws to protect American citizens from online gambling.
While online gambling is legal in many countries, other nations have banned it. The United States, Canada, the European Union and some Caribbean nations allow gambling through the internet. In all these countries, it is essential that the online gambling service providers have a license to operate. Examples of licensing authorities include the United Kingdom Gambling Commission and the Pennsylvania Gaming Control Board.
Those operating illegal gambling businesses could be fined and even jailed. In some cases, they could be sentenced to five years in prison. In addition, they must have been operating for more than thirty days or generate gross revenues of $2000 on a single day. It is also necessary to ensure that a sportsbook or casino is in good standing with the state.
There are several challenges to federal gambling laws. These include arguments based on the Commerce Clause, the First Amendment guarantee of free speech, and the Due Process Clause. But these arguments have received little success. For example, Commerce Clause doubts seem satisfied by the commercial nature of gambling businesses, while First Amendment protection is limited to crimes that facilitate speech. Due process arguments also lose their strength, because financial transactions are involved.