Having an online gambling business can be a lucrative venture, but it can also be a dangerous one. Online gambling is a popular way for children and vulnerable adults to access gambling sites, and it carries with it the risk of criminal activity. There is a wide variety of sites, and some offer special types of gambling.

One of the most common types of online gambling is sports betting. Sports betting is gambling on the outcome of sporting events. Sports book betting accounted for about one-third of the total online gambling industry in 2005. In contrast, poker accounted for about 18% of all online gambling revenue.

There are a few different federal criminal statutes that are implicated by illegal Internet gambling. These include the Illegal Gambling Business Act, the Wire Act, the Travel Act, and the Racketeer Influenced and Corrupt Organizations (RICO) Act. These statutes have prompted various attempts to estimate the size of the online gambling industry.

In December 2002, the General Accounting Office (GAO) released an Internet Gambling: Overview of Issues report. The report discusses various topics, including state and federal laws regulating online gambling. In the end, the GAO report found that there was a lot of uncertainty surrounding the legality of online gambling. However, it did note that state law played an important role in regulating the industry.

A number of federal and state officials have expressed concerns that the Internet might bring illegal gambling into their jurisdictions. This concern is exacerbated by the fact that online gambling transactions may take place through interstate and foreign elements.