As the popularity of online gambling continues to grow, it is imperative that gambling companies keep their compliance operations up to par. This will ensure that the businesses don’t run afoul of any regulations and will also help reduce the risk of money laundering efforts. There are two types of compliance measures that gambling companies should take: KYC and AML. Both of these frameworks can help identify users, prevent account takeover attacks, and help protect against money laundering efforts.
In order to determine if an online casino or other gambling site is operating in an illegal manner, federal agencies can apply monetary fines or seize assets. Although some states have legalized Internet casinos, there are many other countries that restrict or prohibit them. Currently, there are twenty-eight states that allow some form of online gambling. Another sixteen states have enacted laws that govern it. The following states have passed or are considering bills that would make online gambling legal: New York, Connecticut, Pennsylvania, and Delaware. It is expected that more states will pass legislation to legalize it, but that the regulatory landscape will remain a work in progress.
As a general rule, the state that you live in will determine how it views online gambling. Some states are more restrictive than others. For example, in Ohio, gambling is prohibited. However, if you live in Maryland or New Jersey, you can play poker, slots, or other games of chance for cash. Online sports betting is allowed in these states. And if you’re interested in horse racing, you can place bets at any of the leading bookmakers.
When it comes to the United States, there are three different types of crimes that could be committed if you play an illegal game of online gambling. These crimes include: receiving or placing bets, transmitting bets, or receiving bets. If you are involved in any of these crimes, you can be charged with an offense that carries penalties ranging from a misdemeanor to a felony.
Similarly, if you use an interstate facility to conduct an unlawful activity, you may be subject to the Travel Act. Additionally, you can be charged with the federal crime of money laundering. Money laundering is a crime that is used to disguise the origin of a product or service, and it can evade taxes and other responsibilities.
Online gambling is often an avenue for criminals to evade law enforcement. The FBI has warned that this trend has increased. They have also noted that cyberattackers may try to breach customer accounts. That’s why online casinos should be careful in conducting regular external audits. Also, they should screen customers for self-exclusion lists. By placing customers on these lists, the business is assured that they won’t be able to re-access their accounts.
Other federal statutes that may be implicated by illegal online gambling include: the Federal Wire Act, the Bank Secrecy Act, the Internal Revenue Service’s Criminal Code, and the Travel Act. Each of these laws have their own rules and procedures that gambling operators must adhere to, and there is no one-size-fits-all approach.