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Archive for August, 2009

Internet gambling is an essentially borderless activity that poses regulatory and enforcement challenges. The legal framework for regulating it in the United States and overseas is complex. U.S. law as it applies to Internet gambling involves both state and federal statutes. In general, gambling is regulated at the state level, with each state determining whether individuals can gamble within its borders and whether gaming businesses can legally operate there. Five states (Illinois, Louisiana, Nevada, Oregon, and South Dakota) have enacted laws that specifically prohibit certain aspects of Internet gambling, but laws in other states that prohibit some
types of gambling activities generally apply to Internet gaming as well.

Federal law recognizes that state laws vary and seeks to ensure that neither interstate nor foreign commerce is used to circumvent them. To date, 18 U.S.C. § 1084 (commonly referred to as the Wire Act) is the principal federal statute that has been used to prosecute Internet gambling activities across state lines. Although other acts appear to have direct applicability to on-line gambling, we are unaware of federal prosecutions under these statutes.  However, these other federal statutes have been used to prosecute gambling establishments (often located offshore) that accept bets over the telephone. According to an interactive gaming
industry services group, Internet gambling has been legalized in over 50 countries and jurisdictions, mostly in Europe, the Caribbean, and the Australia/Pacific region. A few countries and jurisdictions have prohibited it, but we were unable to determine the exact number.

Representatives of law enforcement agencies told us that Internet gambling could be used to launder money, but others viewed the threat as less serious. Law enforcement representatives said that the anonymity and jurisdictional issues characteristic of Internet gambling make on-line gaming a potentially powerful tool for money launderers. They noted that few money laundering cases involving Internet gambling had been prosecuted but attributed the small number of cases primarily to a lack of regulation and oversight. However, regulatory agencies and officials from the credit card and gaming industries did not believe that Internet gambling was any more susceptible to money laundering than other forms of e-commerce.

Internet gambling involves any activity that takes place via the Internet and that includes placing a bet or wager. The Internet is a complex web of computer networks that allows a person in one place in the world to communicate by computer with another  person located in another place in the world. Courts generally have defined a bet or wager as any activity that involves a prize, consideration, and chance. A prize is anything of value. Chance is usually determined by assessing whether chance or skill predominates. Consideration is what the person must pay to enter and must be something of value, such as money.

The global legal framework for Internet gambling is a complicated mix of laws and regulations. In the United States, both federal and state statutes apply. Gambling is generally regulated at the state level, with federal law supporting state laws and regulations to ensure that interstate and foreign commerce do not circumvent them. The Wire Act, which prohibits gambling businesses from using interstate or international telecommunications wires to knowingly transmit or receive bets, is the main federal statute used to
prosecute such activity. Foreign countries and jurisdictions have taken a variety of approaches to regulating on-line gaming, including legalizing some forms, seeking effective regulatory approaches, and prohibiting it entirely.

The major participants in the credit card industry have tried to restrict the use of their cards for Internet gambling by prohibiting cardholders from using the cards to gamble on line and developing transaction codes that banks can use to block payments at their discretion. Many large U.S. credit card issuers also use codes to deny authorization for Internet gambling transactions, and U.S.-based banks do not accept gambling Web sites as merchants. Despite attempts to circumvent these efforts by using improper coding, the success of these restrictions has caused gaming analysts to lower their 2003 revenue projections for the on-line gaming industry.

There have been numerous well-conducted epidemiological studies of the prevalence of sexual problems in the United States, Europe, and globally [8]. These studies have used differing criteria for identifying sexual problems, yet have produced somewhat similar results. Most studies have found that complaints of low desire are the most common female sexual complaint. Studies have also found that complaints of low sexual desire increase with age, relationship duration, number of small children, relationship discord and symptoms of anxiety and depression [9–11]. These studies have been criticized as not distinguishing between sexual problems (transient issues not requiring medical intervention) and sexual dysfunction (persistent, pervasive problems in adaptation requiring medical intervention).

The limitations of epidemiological data in providing estimates of the frequency of sexual dysfunction in the general population can be appreciated by a careful analysis of the most comprehensive studies to date, the Global Study of Sexual Attitudes and Behavior [8]. This study collected data from 27,500 men and women in 29 countries. Sampling techniques had to be modified for some countries such that comparisons of rates across countries is somewhat problematic. The question pertaining to low sexual desire was ‘During the last 12 months have you ever experienced for a period of two months or more when you lacked interest in having sex?’ If the answer was affirmative, the subject was then asked to rate its frequency as occasionally, sometimes or frequently. This study has been quoted as finding that approximately 33% of women in Canada and the United States complained of low sexual desire. However, this number represents an aggregate of all women reporting occasional, periodic and frequent problems with low libido.