Under proposed legislation to regulate Internet gambling, every Internet gambling operator, whether domestic or international, wanting to do business in the U.S. would be required to obtain a federal license from the Financial Crimes Enforcement Network (FinCEN). Before an application for a license is approved, the applicant would be required to prove that stringent safeguards are in place to protect consumers. Legislation would also require the licensed Internet gambling operators to pay a license fee and collect all applicable federal and state taxes.
- Underage protections. Safeguards to ensure the individual placing a bet is at least 18 years of age
- Fraud and money laundering. Safeguards to combat fraud and money laundering and compulsive gambling
- Gambling only where permitted by the state. Safeguards to ensure that the individual placing the bet or wager is physically located in a jurisdiction that permits that form of Internet gambling
- Tax Collection. Mechanisms to ensure all appropriate taxes and fees are collected from individuals and the licensees
All applicants for an Internet gambling operating license would have to:
- Provide comprehensive financial statements and corporate structure documents
- Agree to be subject to all U.S. laws related to Internet gambling
Applicants convicted of a criminal violation involving gambling, money laundering, fraud or any other financial laws would not be eligible for an Internet gambling license.
States & Indian Tribes
States and Indian tribes could either prohibit Internet gambling activities or impose limits on the various types of Internet gambling activities within their respective geographic borders. Restrictions could be enforced if individual states decide to opt out from permitting persons in their states from Internet gambling.
Any sports league could opt out of the regulatory framework and prohibit any Internet gambling on their games or events.