For example, courts may need to decide whether on-line blackjack should be regulated as a casino game or as an electronic gambling device. Federal laws involving interstate electronic transmissions may affect the legality of these operations, although the exact status of these regulations is evolving through court interpretations. Operators may not knowingly use a wire communication facility to transmit sporting event bets or related information in these instances. However, intrastate transmission is not covered by the Act. Additionally, some states explicitly regulate Internet gambling based on whether the player is physically present in that state when the gambling takes place.
Internet gambling raises related consumer credit and protection issues.
Usually, Internet gambling operations require that players deposit some money up front by credit or debit card or other payment. These payments cover the player's transactions. Creditors usually may not enforce gambling debts, so this procedure protects the operator from losing money from nonpayment of losses. More recently, some sites offer gambling with no prior deposits, bringing these sites under regulation as sweepstakes in most instances. Depending on the licensing jurisdiction, regulatory oversight and initial background checks may be spotty at best, so gamers should proceed with caution.