Simple English definitions for legal terms
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Gambling is an activity where people risk money or something of value in the hope of winning more money or a prize. It is regulated by both state and federal laws in the United States.
Each state has its own laws about what types of gambling are allowed, where gambling can take place, and who can gamble. For example, in New Jersey, an 18-year-old can buy a lottery ticket or bet on a horse race, but cannot enter a casino until age 21. The federal government also regulates gambling, especially when it involves interstate or international activity. Congress has passed laws that prohibit the unauthorized transportation of lottery tickets between states, outlaw sports betting with certain exceptions, and regulate gambling on Native American land.
Internet gambling has become a popular way for people to gamble, but it is subject to federal and state laws. The Department of Justice maintains that all Internet gambling by bettors in the United States is illegal under the Wire Act, which prohibits the use of a "wire communication facility" to transmit information related to wagering on "any sporting event or contest." However, the Fifth Circuit Court of Appeals has ruled that the Wire Act applies only to sports betting, not other types of gambling. In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, which made it illegal for wagering businesses to knowingly accept payment in connection with unlawful Internet gambling. Some states have also enacted legislation to prohibit some types of Internet gambling.
A person goes to a casino and plays slot machines, risking money in the hope of winning a jackpot. This is an example of gambling.
Another person bets on a sports game with a bookie, risking money in the hope of winning more money if their team wins. This is also an example of gambling.
Finally, a person plays poker online, risking money in the hope of winning more money. This is an example of Internet gambling, which is subject to federal and state laws.