Federal Gambling Defense Lawyer in California
Gambling is legal under certain circumstances, but engaging in illegal gambling can result in federal or state criminal charges, depending on the facts, circumstances, and jurisdiction or location of the alleged crimes.
Cron, Israels & Stark, with our extensive experience in federal and state courts, can help you fight against criminal charges in California state courts or federal courts.
We have a proven track record of achieving the best possible outcomes for our clients facing illegal gambling charges, including reduced charges, minimized penalties, or even case dismissal.
Legally, gambling on games of chance, sporting events, and horse races is heavily regulated by the federal and state governments. Many people participate in illegal gambling through backroom poker tournaments and bookmakers, or “bookies,” to circumvent these laws.
The United States government is mainly concerned with illegal gambling businesses, not individual illegal gamblers. Federal law regulates companies that are licensed to take bets and facilitate gambling.
Under federal law, illegal gambling businesses are those that violate state or federal laws, involve five or more people, have operated for more than 30 consecutive days, and have grossed more than $2,000 in a single day.
Legal vs. Illegal Gambling
The complexity of gambling laws, governed by separate sovereigns with distinct and often conflicting regulations, underscores the need for professional guidance in determining the legality of gambling activities.
The federal government often defers to state statutes regarding gambling, but the federal government still maintains its own laws on gambling, especially internet gaming.
Violating federal gambling laws can lead to serious charges, including substantial fines, potential imprisonment, and a criminal record with long-term consequences.
A criminal record can affect your employment opportunities, housing options, and even your personal relationships. This underscores the urgency of seeking the services of a federal criminal defense attorney.
This is why it's critical to retain the services of a federal criminal defense attorney who has the experience to reduce the likelihood of conviction and limit the penalties that you may face.
Common Federal Gambling Laws
Illegal gambling can be prosecuted under several different federal criminal statutes, each with different punishments. Notably, getting charged in federal court means an individual or business can face enhancements that can lead to harsher sentencing and steeper fines.
Let's review some of the common federal laws that are related to illegal gambling, such as the following:
- The Illegal Gambling Business Act of 1955 (18 U.S. Code § 1955). This law prohibits owning, operating, supervision, financing, or management of an illegal gambling business anywhere in the United States. It imposes a penalty of a fine and/or imprisonment for up to five years. It also includes a provision that allows the United States government to seize any property, including money, used in violation of this law.
- The Federal Wire Act (18 U.S. Code § 1084). This law prohibits the use of telephones, the internet, or fax machines to place interstate bets or wagers on sporting events or to engage in illegal gambling. It also makes it unlawful to launder the money made by an illegal gambling business. Violating this law carries the penalty of a fine and/or two years in prison. The primary purpose of this law is to prohibit individuals engaged in the business of betting or wagering from using wire communication facilities to transmit bets or related information across state or international borders.
- Unlawful Internet Gambling Enforcement Act (UIGEA). This law targets financial institutions, payment processors, and Internet Service Providers. It makes it illegal for a business to accept or process credit cards, electronic transfers, or funds, or accept checks or similar instruments for payment related to unlawful internet gambling. Notably, the act makes exclusions for certain fantasy sports, skill games, and horse racing. Section 5366 of the UIGEA imposes penalties of five years in prison, a fine, and being barred from involvement in gambling.
Other related federal laws include 18 U.S.C. 1082, which pertains to gambling ships, and 18 U.S.C. 1083, which addresses transportation between shore and ship.
Related Federal Crimes and Enhancements
The investigation of illegal gambling typically falls under the jurisdiction of the Federal Bureau of Investigation (FBI), which commits resources to online gambling and sports betting.
The FBI often collaborates with local and state law enforcement agencies, the United States Marshals, the Internet Crime Complaint Center, the Internal Revenue Service (IRS), and state gaming commissions.
These agencies work together to gather evidence, conduct surveillance, and build cases against individuals and businesses suspected of engaging in illegal gambling activities.
These criminal investigations are typically detailed and well-researched. This means that people facing federal illegal gambling charges will often face charges related to operating an illegal business, such as the following:
- Conspiracy (18 U.S. Code § 371). A conspiracy is an agreement between two or more people to commit a crime. Since federal illegal gambling businesses often involve five or more people, conspiracy charges will apply. The penalties for federal conspiracy charges vary depending on the crime related to the conspiracy. Federal prosecutors often charge conspiracies requiring five, ten, or twenty-year mandatory minimum prison sentences.
- Tax Evasion (26 U.S.C. § 7201). Since some illegal gambling businesses will launder their profits or not claim the income from the illegal endeavor, they often do not accurately declare their income. This means they could face tax evasion charges that carry a penalty of up to five years in prison and fines of up to $100,000 or $500,000 for a corporation.
- Money Laundering (18 U.S.C § 1956). To obscure the source of their income, some people involved in illegal gambling businesses will engage in money laundering. If convicted, you could be ordered to pay twice the value of the money laundered, up to $500,000, and be sentenced to serve a federal prison sentence based on any underlying felonies related to the money laundering charge, possibly up to 20 years.
- Racketeering. The Racketeer Influenced and Corrupt Organizations Act (RICO) is often related to operating an illegal business. Depending on a defendant's criminal history and the other crimes for which they may be charged, the sentence can be enhanced. The maximum punishment for violating RICO is 25 years in federal prison. It also includes a fine of either $250,000 or twice the amount of the proceeds from the illegal enterprise.
Common Defenses Against Illegal Gambling Charges
If you are accused of violating gambling laws, our federal criminal defense attorney can employ a range of effective defense strategies, tailored to the specifics of your case. Our track record of successful defenses should instill confidence in our ability to protect your rights and interests.
Perhaps we can argue that you were not operating a gambling business. If your activities were those of a casual bettor and not an operator, the federal statutes may not apply to you.
Perhaps we can argue that you were unaware that your actions involved transmitting illegal wagering information or that the communication did not cross state lines, thus falling outside the jurisdiction of federal statutes.
If the transmission of information occurred between two states or countries where the specific type of sports betting is legal, your conduct may be protected under the law's exception.
We can navigate the nuances between legal and illegal gambling, the unique laws pertaining to sports betting, the relationship of interstate statutes, and the vagaries of offshore online gaming laws to raise reasonable doubt about your guilt. For more information, contact our federal criminal defense law firm, Cron, Israels & Stark, located in Los Angeles, CA.
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