Imagine this: You visit a Web site, download a program and register with the site. A few minutes later, you're sitting at a virtual poker table, happily playing Texas Hold 'Em.

You're playing with real money. You've paid for virtual betting chips via an escrow service. And, if you're lucky enough to win, your account will be credited with money.

What's wrong with this picture? It's illegal, according to the Department of Justice.

Thousands of gambling Web sites operate offshore, beyond the grasp of U.S. regulation.

Online casinos have been around for about a decade, and the recent rise in the popularity of poker has spurred their growth. According to Keith Furlong, deputy director of Interactive Gaming Council, an industry trade organization located in Canada, online casinos will attract about $10 billion this year, with U.S. gamblers ponying up 60 to 65 percent of that.

Some states have passed laws prohibiting online gambling, but no federal law specifically addresses it. Instead, the federal government relies primarily on the Wire Wager Act to prosecute online casino operators.

Under the act, business owners who accept bets via a "wire communication facility" face fines and imprisonment. The act was intended to curb the use of the telephone to accept bets.

Opponents are quick to note that the act was written in 1961 -- long before the Internet. They question whether the law applies to online gambling. And they insist online gambling is a gray area at best. However, the Justice Department is adamant that online gambling is illegal. And in 2000, it successfully prosecuted American Jay Cohen, part owner of the World Sports Exchange in Antigua.

Since 2002, the Justice Department has pressured media companies to pull ads for online gambling. Clear Channel, the nation's largest radio company, stopped airing ads for online casinos that year, and other mainstream media companies have followed suit.

Banks also have come under pressure from the Justice Department. Many decline credit-card transactions from online casinos. Bank One, which recently merged with JPMorgan Chase, is among them.

'[It's] because of the high likelihood of fraud," said Mary Jane Rogers of Bank One. "Bank One may restrict transactions that appear to be Internet gambling." She adds that the bank can't always tell that a charge is from a casino.

Other payment options also are becoming scarce. PayPal stopped processing payments for gambling in 2002. That left only a few lesser-known escrow agents that work with the casinos.

Gannett News Service

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