Online gambling, thanks to virtual casinos, came into vogue from 1994 onwards and since then the legality of online gambling has been fiercely contested and has given rise to hot debates.

With real life gambling there is no such problem as such, as there are proper state laws, federal laws and charitable laws controlling gambling activities in USA. Some states like Nevada (Las Vegas is famous for its casinos), New Jersey and Atlantic City have legalized gambling, others have not. So there is no scope of any loopholes or lacunae.

However with the advent of online gambling, where the first virtual casinos were grounded in the Caribbean islands and which were protected by the Free Trade and Processing Zone Act, online gambling legality was slowly mired in a haze for people from any corner of the globe could punt in these virtual casinos, sitting in their own homes.

Online or offshore gambling and offshore/online casinos are strictly prohibited in some countries like USA. But how do the lawmakers decide whether it is illegal for a U.S. citizen to indulge in online gambling at a virtual casino which is grounded in a country where online gambling is legal? It is indeed very confusing.

So the U.S. of A has come up with a new protocol called U.S. Wire Wager Act that prohibits any kind of transmission of gambling spoils and bets within the country via electronic wire method that includes internet. That means the person who is indulging in online gambling in a country where it is not legalized, is at fault.

But instead of prosecuting the person guilty of felony, the casino owner will be prosecuted, but again it is not possible for a country to run criminal proceedings against a person based in another country.

Thus the legality of online gambling is still cloudy, hazy and a really grey area.