Perhaps the hottest topic concerning internet gambling is its legality. The worldwide nature of the internet makes it difficult to pass laws governing the industry. That leads to distrust among potential gamblers. Because of this, gaming interests have turned to the example of the movie and music industries and have set up their own regulations.

Industry sites offer newsletters, ratings, and reviews of major gambling sites in an effort to steer gamblers away from disreputable sites. According to GamblingLicenses.com, currently there are 76 jurisdictions around the globe where some form of online gambling is licensed or expressly prohibited.

The majority of these are in Asia and Europe, but there are also five in the United States – New Jersey, Louisiana, Nevada, Oregon, and Washington. A sixth state, California, has passed legislation to make online gambling and advertising of such services illegal

Making this issue even more complex is the contention by online gambling opponents that the federal Wire Act of 1961, which they claim should apply to the internet in addition to telephones, makes internet gambling illegal throughout the United States.

Congress has tried to pass legislation outlawing internet gambling more than once but the legislation has never been signed into law. Still, many members of government contend internet gambling is illegal under current legislation.

Because of this, all internet casinos, even those run by domestic companies, are licensed in foreign countries. Primary among these are Canada and the Caribbean. Even the non-profit Interactive Gaming Council (IGC), which was started in 1996 in the United States, moved to Canada, where it was incorporated in 2000.

The group, which has a published code of conduct and mission statement, was founded “to establish fair and responsible trade guidelines and practices that enhance consumer confidence in interactive gaming products and services,” according to its web site.

The IGC is by no means the only trade association devoted to internet gambling. There are least six others, including the Interactive Gaming Gambling and Betting Association, based in Great Britain, composed of operators, technology companies, suppliers of services, and other interested parties.

While industry experts estimate more than half of the world’s online gambling audience is in the United States, only residents of the state of Nevada can be certain of what is legal. That state has passed legislation licensing in-state casinos for Nevada residents.