Gambling online is a popular pastime for many people, but it can also be a source of legal trouble. While there is no federal law that criminalizes online gambling, the penalties for breaking the law can vary from state to state. In some states, gambling online can be considered a misdemeanor and result in fines or even jail time. In other states, it is classified as a Class A misdemeanour, which carries a penalty of up to one year in jail.
The US government actively seeks out online gambling operations as a starting point for cracking down on online gambling in general. Aside from the few states that actually allow some form of online gambling, the rest of the states have penalties that fall somewhere on the spectrum from fines to jail time. Fortunately, checking whether a gambling site is licensed or authorised is fairly straightforward (for more information, read the article "Finding a Reputable and Legitimate Online Gambling Site"). Until then, rest assured that you will not go to jail for gambling online, as long as you are not breaking any state laws by doing so. Online gambling probably isn't going to fund terrorism, it probably isn't going to fund organised crime, and it probably isn't going to cause you to lose your life savings.
In recent years, most federal resources have focused specifically on online gambling and sports betting, in part because of the incredible growth and popularity these platforms enjoyed during the 2000s. Other gambling-related crimes, especially online gambling and sports betting, are detected through regular audits and investigations of websites and internet activity. This fact, coupled with the fact that states possess what is called 'police power' (or authority to enact and enforce public safety and morality laws, such as criminal laws), means that each state is free to legalise online gambling or not; and if it is not legal, to impose whatever penalties it chooses. In particular, illegal online gambling has posed significant problems for federal agencies and prosecutors. Because of the scale and proliferation of online activity, defendants have also been convicted of conspiracy to commit money laundering and federal racketeering charges. If you want to make sure you comply with the letter of the law, you will need to visit a place like the UK, where there are legal avenues for online gambling.
Knowing your local laws is essential if you want to stay on the right side of the law when it comes to online gambling.
