UIGEA and the Wire Act for online bingo
Two federal laws appear frequently in online gaming discussions: the Unlawful Internet Gambling Enforcement Act and the Wire Act. Neither should be summarized as “online bingo is federally legal” or “all internet gaming is federally illegal.”
UIGEA focuses on payment acceptance
Section titled “UIGEA focuses on payment acceptance”UIGEA is codified at 31 U.S.C. sections 5361 through 5367. It generally prohibits a gambling business from knowingly accepting certain payments in connection with unlawful internet gambling.
The word “unlawful” depends on other applicable federal or state law. UIGEA therefore does not create a complete national list of lawful games. It also contains definitions, exclusions, and conditions for intrastate and intratribal transactions.
A successful card charge does not prove a game is lawful. For an operator or payment provider, payment blocking and due-diligence obligations are part of a wider legal analysis.
The Wire Act concerns interstate transmissions
Section titled “The Wire Act concerns interstate transmissions”The Wire Act appears at 18 U.S.C. section 1084. Its text addresses the use of a wire communication facility for certain betting or wagering transmissions and related information.
The scope of the statute has been the subject of federal interpretation and litigation. In 2011, the US Department of Justice Office of Legal Counsel concluded that the prohibitions in section 1084(a) are limited to sports betting in an opinion concerning state lottery proposals. Read the official 2011 opinion rather than treating a short summary as the statute.
This history is one reason a page should not make a broad federal conclusion from the word “interstate.” Other federal statutes and state laws can still apply.
What these laws do not answer
Section titled “What these laws do not answer”Neither law alone decides:
- whether a bingo tournament is predominantly skill or chance under a state test;
- whether a sweepstakes has a valid free entry route;
- whether a tribe and game fall within Indian gaming law;
- whether a charitable organization has the required local license;
- whether a casino operator and game are approved by a state regulator;
- whether a particular payment or redemption complies with the platform rules.
Compliance sequence
Section titled “Compliance sequence”Start with the product’s actual mechanics and the player’s location. Identify the state law or regulator, then review federal transmission and payment restrictions, operator eligibility, identity controls, and the selected payment method.
This page is general information. A business launching a game or promotion needs advice from qualified counsel in every relevant jurisdiction.