Federal authorities are attempting to regulate online gambling. A recent federal lawsuit has charged several Internet poker operators with violating the U.S. Commerce Clause and money laundering laws. The case, known as United States v. K23 Group Financial Services, has also raised questions about the government’s power under the Commerce Clause and the First Amendment.

Several legal experts have weighed in on the topic. One notable article by the Loyola of Los Angeles Entertainment Law Journal outlines some of the legal issues surrounding illegal Internet gambling. The article notes that under the Travel Act, players are prohibited from using interstate facilities for unlawful activities. But unlike Rewis, which deals specifically with gambling, this law does not apply to financial transactions, such as those provided by a telecommunication service provider.

While some types of online gambling are already available in Ohio, the state is quickly moving toward a more robust online gambling environment. While the state currently does not allow online casinos, poker, or sports betting, it has a deadline of Jan. 1, 2023 to legalize these activities. Governor Mike DeWine signed House Bill 29 into law in late December. The Ohio Casino Control Commission is in the process of licensing businesses to begin operating in the state.

Unlawful internet gambling involves seven federal laws. The Wire Act and the Illegal Gambling Business Act make it illegal to place bets on sports events and contests, while the Travel Act bans illegal gambling on interstate commerce. Additionally, the Racketeer Influenced and Corrupt Organizations (RICO) provisions prohibit certain types of internet gambling.