Washington, D.C. is becoming the first U.S. jurisdiction to allow Internet gambling. This provision was part of the 2011 federal budget, approved in part to offset budget cuts and help social service programs.
Historically, online gambling has been an unsettled area of law. In 2006, Congress effectively banned Internet gambling by passing a law prohibiting banks and credit card companies from processing payments from gambling companies to individuals. But, the law did not ban Internet gambling itself.
It is unclear how the federal government will respond. The U.S. Department of Justice, which has traditionally viewed Internet gambling as illegal, declined to comment. Because Washington, D.C. is a federal city, Congress had a 30-day period to object to the legislation, but did not do so.