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The first federal legislation to pass after the advent of Internet was the Unlawful Internet Gaming and Enforcement Act UIGEA from , which banned payments on all forms of gambling that were considered illegal under the Wire Act. A common belief is that the UIGEA made online gambling illegal when in actuality it only gave authority to enforce existing laws.

The issue was clarified in late when the Justice Department confirmed conventional wisdom that had existed for nearly two decades by declaring that the Wire Act was only applicable to sports betting and not casino table games or poker. The decision effectively put the legality question on the shoulders of the states to license, regulate, and tax online US casinos and card rooms. Some states have laws on the books expressly prohibiting US online casinos; some do not. Delaware and New Jersey have fully legalized online casinos, but those players are permitted to play only at online casinos expressly endorsed by the state.

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