This question is being hotly debated by legislators, lawyers, and law enforcement. This would seem to proscribe Internet gambling. However, most Internet casinos are physically located outside the United States in countries where their activities are completely legal. Technically, their operations lie outside the jurisdiction of the U. S. authorities. The reality is that the federal government does not have the time, the manpower to pursue individual gamblers who use their home or office computers to gamble on the Internet.
Some operators are unsure of the legal implications themselves and bar residents of certain states.
Some casinos don't want to anger the US government and prohibit US residents from opening accounts. It must be noted, however, that the US government has indicted US citizens that it believes are guilty of running offshore sportsbooks and taking bets from US citizens in the United States via the internet. All over the world, but mostly in the Caribbean. Recent growth has been seen in Europe, Australia, and South Africa. There are some sites in the South Pacific and some sites are even planned for the United States on Indian reservations.