Online Gambling is an activity of placing bets for a chance of winning a prize. It includes sports betting and virtual poker. In the United States, most online gambling is based on casino games. There are other forms of online gambling, such as bingo and lottery games.

Internet gambling has grown in popularity in recent years. It is estimated to be worth $40 billion annually. However, there are legal issues associated with it. Some countries have banned it, while others allow it.

Laws regarding online gambling are governed by both federal and state laws. In some cases, the federal law is more protective than the state law. This is because the presence of an interstate element complicates the enforcement policies of the state law.

The UIGEA, or Unlawful Internet Gambling Enforcement Act, is a federal statute that regulates commercial activity related to online gambling. Among other things, it prohibits the acceptance of financial instruments for illegal Internet bets.

A federal court case charged several Internet poker operators with violations of the UIGEA. The companies were fined $4.2 million and launched a public-service campaign.

Nicolaou is a 4th Circuit case that involved a gross revenue of $2,000 on a single day. Five people were involved in the transaction at all times, and the case lasted thirty days. Despite its limited First Amendment protections, the government had a difficult time convincing the court that its criminal prosecutions were justified.

In December 2002, the GAO published an overview of issues involved in Internet gambling. As a result, more states are expected to pass laws to facilitate the expansion of online gambling.