During the hearing regarding the constitutionality of the Unlawful Internet Gambling Enforcement Act a very interesting argument was brought up.  It is an argument that directly addresses the difficulty of enforcing law against online casinos and businesses over the Internet.

An attorney arguing on behalf of the Interactive Media Entertainment and Gaming Association described a typical transaction of an online casino.  A gambler in the United States chooses to gamble at an online casino set in Costa Rica.  Although the gambler is sitting in his American living room, the actually business transaction is taking place in Costa Rica.  In Costa Rica online gambling is 100 percent legal.  So how can an American law like the Unlawful Internet Gambling Enforcement Act apply to a transaction made with a Costa Rican business and why should it take precedence to Costa Rican law.

Although the judges during the recent hearing did not take kindly to argument, it raises a very interesting point that must eventually be addressed.  Online casinos are showing how much the Internet has changed things.

It is the controversial nature of online casinos that has really forced legislators to focus on an issue that really applies to all of ecommerce.  Sensible countries realize the harm that would come from interfering with the free flow of the Internet.  But, somehow the issue of what country’s laws take precedent must be addressed.  It is for reasons like this that when the United States attempts to enforce pre Internet laws on post Internet businesses, it does not quit work.