The Legal Answer to Cyber-Gambling

18 Pages Posted: 18 May 2011

See all articles by Ronald J. Rychlak

Ronald J. Rychlak

University of Mississippi, School of Law; Ave Maria Law School

Date Written: May 17, 2011


In 2009, federal legislation went into place that essentially prohibited online gambling by prohibiting American financial institutions from facilitating cash transfers to and from Internet gambling sites. Unfortunately, due to jurisdictional limitations and the creativity of gaming operators, this new law is unlikely to meet the needs of American lawmakers. In fact, most of the attempts to prohibit or regulate Internet gambling have failed, and - by the very nature of the industry - are doomed to fail. This paper proposes a market-based solution that provides gamblers with a fair game, reduces social costs of online gambling, and provides gaming operators, both from within and outside of this nation, the ability to run a well-regulated online business. Legal, unregulated web pages will still be available, but regulated sites will provide competition that may run most crooked operations out of business.

Keywords: gambling, gaming, internet gambling, internet gaming, cyber-gaming, cyber-gambling

JEL Classification: K14, K23, K43

Suggested Citation

Rychlak, Ronald J., The Legal Answer to Cyber-Gambling (May 17, 2011). Mississippi Law Journal, Vol. 80, No. 4, p. 1229, 2011. Available at SSRN:

Ronald J. Rychlak (Contact Author)

University of Mississippi, School of Law ( email )

Lamar Law Center
P.O. Box 1848
University, MS 38677
United States
662 915 6841 (Phone)
662 915 6842 (Fax)


Ave Maria Law School ( email )

1025 Commons Circle
Naples, FL 34119
United States

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