Is Online Sports Betting Legal?

Congress cynically attached a supposed prohibition of online gambling on The Safe Port Act in 2006. From the government's viewpoint this is actually a moot law seeing their position has been all along that placing wagers online is illegal. However, it is a murky area as is most legal facets of being a bettor unless you are in Las Vegas. How many prosecutor's offices around the country are themselves breaking the law during March Madness?

Some things are clear. If you attempt to operate an online gambling web site, then you are violating the law and the government will pursue you relentlessly. One British executive of an online wagering site was arrested during a connection in Texas while flying from London to Central America. Also clear now is facilitating financial transactions in support of online wagering is illegal. That was the main thrust of the Safe Port Act. Banks have since been complaining about the burden this law potentially puts on them.

Less clear is the legality of only placing a wager. Much debate has ensued among legal experts concerning the answer to this question. Some states have their own laws which clearly make it illegal. However, whether it is illegal on a federal basis is really a moot point. If the government ever so desired to crucify online wagerers they could do so through the IRS. How many online bettors correctly report and pay taxes? In many instances losses are not deductible against wins. Taxes owed on winners only going back years could be severe especially considering added penalties. That would prove a far harsher penalty than any alternative slap on the wrist a bettor would face from applicable federal laws. So, it really doesn't matter what the technical legality actually is.

No pun intended, but what are the odds of the government doing this? No one can say for sure. However, those subject to enforcement are obviously gamblers to begin with. One could hardly envision millions of parley placers being rounded up and jailed. That risk appears to be less than the odds of hitting a 20 team teaser parley. However, bettors must realize that there can be some level of penalty levied if the government should ever so desire. As if they wouldn't have better things to do, but one never can predict such things.

Congressman Barney Frank is the only one with courage enough to tell the truth about this silly prohibition. Regulation and taxation of the industry is a far better alternative to vague laws and wild west operations. As with all vice related prohibitions the lost revenue to the government through taxation has instead gone into the pockets of organized crime.