Due to the nature of the Internet, stopping gambling
will be a challenge for any institution. If you believe
the websiteies, the markets where Internet gambling
is most popular are Hawaii and Utah, which prohibit
all gambling.14 Since websites are accessible to the
entire world, it is hard to demonstrate that an e-casino
is targeting a particular state's residents. An Internet
casino could be allowed to set up in one state, and
of course it would then be accessible to people in
another state, but that does not necessarily prove
intent to accept prohibited bets. State's attorney
generals who have examined the problem admit that
there is no "bright line rule," or clear
demarcation between what's acceptable and what isn't.
States would be limited in their authority to go after
ISPs and financial institutions. Only the federal
government can regulate interstate commerce, and these
companies' electronic communications cross state lines.
Theoretically, a state could forbid its citizens from
gambling, but it could not interfere with electronic
information crossing its borders to legal jurisdictions.
It would be even harder to go after gambling servers
based overseas. States cannot extradite persons outside
the country because the constitution allows only Washington
to do that." Local governments would have to
get federal cooperation on this, but extradition for
gambling offenses is not high on the agenda of' American
foreign relations. The US does not have extradition
treaties with all countries, and such actions are
understood to be done only for high-profile, serious
crimes. State extradition of overseas operators would
be well-nigh impossible.