In 1996 the National Gambling Impact Study Commission Act was signed into law which established the National Gambling Impact Study Commission, “charged by Congress with a ‘very broad and very difficult task – to conduct a comprehensive legal and factual study of the social and economic implications of gambling in the United States.’” The Commission efforts included “holding a series of hearings around the country…received testimony from hundreds of experts…making several site visits, commissioning original research, conducting surveys of the existing, wide-ranging literature, and soliciting and receiving input from a broad array of individuals and organizations.” This process took two years, and the final report was published in 1999. During the report’s introduction, the Commission addresses Internet gambling specifically, “Thus, with only a few exceptions in areas such as the Internet, we agree that gambling is not a subject to be settled at the national level, but is more appropriately addressed at the state, tribal and local levels.”

It seems that the authors’ limited understanding of cyberspace permitted them to treat the Internet as a unified jurisdiction capable to being encompassed by a national law, since any state would be hard pressed to enforce a law governing the de-centralized Internet’s transmissions across state lines. They did include a specific section devoted to Internet gambling in which they came to no clear conclusion, but rather harped on the uncertainty that the technology has brought to the legal field. Mainly they assert that the most likely law to invoke is the Wire Act, but simultaneously admit that “wire communications” may not apply to the World Wide Web that can employ satellite technology and other wireless technology. They also raise the issue that the statute does not clearly define gambling “contests” and if it should apply to nonsports betting such as Internet bingo, lotteries, or casino-style games. More poignantly, the Commission asks relevant but unanswered questions such as “What are the legal jurisdictions when it comes to Internet gambling? Where are the bets and wagers actually taking place?” Such questions were already covered for brick-and-morter establishments and accompanying telephone communications as a result of the RICO laws and the like.

In conclusion, the Commission made four recommendations regarding Internet gambling: 1) the federal government should prohibit…Internet gambling not already authorized, 2) prohibit wire transfers to known Internet gambling sites or the banks who represent them, 3) prohibit states from permitting the expansion of gambling into homes…, 4) the federal government should take steps to encourage foreign government not to harbor Internet gambling organizations that prey on US citizens.

While the report focused on addressing both the social and economic situation regarding gambling, the only technological solutions in regards to Internet gambling they came up with were recommending enforcement strategies that targeted ISPs, credit card providers, money transfer agencies, and makers of wireless communication systems. In order to police the nebulous Internet, they planned on holding the financial facilitators responsible.