DRAWING A LINE IN THE SAND: HOW THE FEDERAL GOVERNMENT CAN WORK WITH THE STATES TO REGULATE INTERNET GAMBLING

Traditional hotels and casinos can cost billions of dollars to construct, whereas online casinos require only a few million.12 Internet casinos are easily accessible from the home and do not require traveling considerable distances. In 2002, the chairman of the Nevada Gaming Control Board sent a letter to the Department of Justice (DOJ) to inquire into whether federal law would allow Nevada to legalize Internet gambling within its jurisdiction.17 Assistant Attorney General Michael Chertoff replied that Nevada regulators could not allow "interactive gaming" from outside the state under current federal law.18 Chertoff s letter interpreted federal law to prohibit all types of Internet gambling.19 Under this interpretation, the DOJ would presumably find any type of Internet gambling illegal even if both the state where the bettor originated and the state that operated the online casino had legalized Internet gambling. States would also be able to regulate and monitor online casinos in an effort to help problem gamblers, prevent underage gambling, and minimize any adverse social costs.