Federal law prohibits Internet gambling, but there is still considerable debate over its constitutionality. Some argue that it violates the Commerce Clause, the First Amendment guarantee of free speech, and the Due Process Clause. Yet such arguments have met with little success. Commerce Clause doubts are satisfied by the commercial nature of the industry, while free speech objections have little support when financial transactions occur in the United States.
Internet gambling is defined as the placing, receiving, and transmitting of bets over the internet. There are numerous state laws governing the industry. These laws are also inconsistent across states, and many states do not enforce them. This is especially true in the case of sports betting. However, in most cases, internet gambling is not illegal if conducted entirely within a state.