Some studies estimate that revenues for Internet gambling doubled within one year.
The U.S. commercial casino industry is one of the most heavily regulated industries in the nation. Not only must U.S. commercial casinos comply with state restrictions, licensing requirements and regulations, they also are subject to numerous federal laws. For example, U.S. commercial casinos are subject to federal corporate taxation, publicly traded companies comply with Securities and Exchange Commission rules, casinos file information reports on larger winnings with the IRS and withhold federal taxes on certain winnings, and casinos adhere to anti-money laundering statutes and regulations administered by the U.S. Treasury Department. In contrast, those offshore operators engaged in the business of taking Internet wagers from the United States are not subject to these important federal and state legal requirements. This legislation would update the Wire Communications Act of 1961, which already prohibits the use of the telephone or other wired devices to circumvent state prohibitions or regulations affecting gaming.