National Standards and Uniformity Needed in Regulation of Internet Gambling

“If Congress doesn’t act soon we could end up with fractured rules and regulations that vary state to state, leaving more opportunity for fraud and fewer safeguards for players.”

— Rep. Joe Barton (R-TX)

While regulation is the right approach, the first state laws authorizing Internet gambling differ substantially in important areas. For example, Nevada law authorizes poker only, while New Jersey authorizes all forms of online casino games. There are also differences in what types of persons may apply for a license and when licenses are required. Absent federal action, Internet gambling will be governed by a patchwork of inconsistent, and potentially confusing, state laws.

Consistent with the federal role over e-commerce, Congress should create uniformity across the country and protect consumers regardless of where they are located in the U.S. The traditional respect for state control of gambling activity can be maintained by a system in which federal regulation allows each state and tribe to determine whether to allow online gambling to those within their physical borders, or to opt out.