In the United States, 48 of the 50 states allow some form of legalized gaming. Many of these 48 states, however, have laws in place that limit the ability of their citizens to make wagers with out-of-state providers of gaming. The increase of Internet gaming sites is putting these laws in the spotlight. One rationale in support of these laws is the protection of the economic interests of in-state providers, often the state itself in those states that operate state lotteries. Perhaps because states have general police power to regulate in areas of "legitimate local concern," there have been no legal challenges specifically aimed at the state laws that discriminate against out-of-state gaming providers. But, this may change in light of U.S. Supreme Court's recent decision in Granholm v.
Heald.
Click here to view the entire article "Internet Gaming: The Role of the Dormant Commerce Clause" from the Betting & Gaming practice at Kirkpatrick & Lockhart Nicholson Graham LLP.
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