Its a touchy subject. Right now, sports gambling is a state to state issue, and playing on the internet is pefectly legal. However, making legal nationwide would open a big can of states power vs federal power. Personally, as long as what you are doing is not harming anyone, you should be able to do it online without any gov't interference. I play online as a semi-pro poker player (most 2/4 and 3/6 limit hold'em), and have been following this case very closely. The best argument I've heard is that if you visit another country and participate in an act that is legal there, when you came back, no matter how illegal in the US, the US government could not punish you for it. Thats what your doing when you gamble online. You are 'virtually' visiting another place, most of which are not based in the US. Now, if a company decides to open a large online gambling site based in the US, they would be subject to all federal and state taxes, and would pay them. However, federally 'regulating' internet gambling would open a can of worms that I don't think any senator would have the balls to open up, simply because of the public opinion swing it could have.