Online betting sites and online betting is still a very fuzzy issue in the United States. There is still a lot of disagreement over online betting sites and their legality as the debate on clearing them rages on. Citing the Interstate Wiring Act of 1961, the case against the internet betting sites grew in strength. It was passed nearly 50 years ago to check gambling between states over telephone. Legal experts cited the internet development which was different from the telephonic bets and wondered why internet betting was still lumped with the 1961 Act.

Again, they questioned whether the Wire Act of 1961 included gambling in general and in all forms or whether it was just meant to curb wagering by betting sites on all sports and sporting events. In 2002 a ruling in a Louisiana court dismissed suits filed by internet gamblers who were piled with debts. What came out of the ruling was the Wire Act applied only to sporting events. It was still not clear but betting on sporting events using the internet and credit card payments was considered not legal. But the Justice Department of the US brought in all forms of internet gambling under the 1961 Act.

Later, in 2006, the SAFE Port Act was passed by Congress to secure the US Port but in effect it also came with the enforcement of gambling activities of betting sites. It made use of credit cards, electronic fund transfers and checks for gambling related payments totally illegal for American citizens. But the new Act dealt with the funding of the gambling activities and remained silent on the betting activity. After the Act was passed, in a talk show at PBS news hour, online gambling attorney Lawrence Walters maintained that the bill didn't have any bearing on the activity of the individual bettor even though certain types of financial transactions were restricted. The law required the internet betting sites also to block those financial transactions.

In the same show, Keith Whyte, national Council of problem Gambling's executive director also felt that the bill did not make betting sites illegal. It was only the wagering over the internet that was considered illegal and not the gambling sports of betting sites. Things changed a bit when Rep. James McDermott weighed in that the US could rake in nearly .1 billion to billion in revenue from regulating gambling on online betting sites. It was after bills were introduced to collect wager taxes.

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