The Interstate Wire Act of 1961, often called the Federal Wire Act, is a United States federal law prohibiting the operation of certain types of betting businesses in the United States. The Unlawful Internet Gambling Enforcement Act of 2006 (or UIGEA) is United States legislation regulating online gambling. It was added as Title VIII to the SAFE Port Act (found at 31 U.S.C. §§ 5361–5367) which otherwise regulated port security. Neither of these laws prohibits legal activities that are licensed or permitted by states, and focus on stopping activities that are not licensed or permitted. They both establish the requirement of organizations to be licensed or allowed to conduct an activity by law.
The UIGEA does however take gaming activity on the Internet a bit further by establishing baseline standards that systems and software platforms must conform to in order to be used to operate games of chance. Since a raffle by definition is a game of chance, the operation of raffles must meet these requirements.
The law requires systems to establish policies and procedures that are reasonably designed to identify and block or otherwise prevent or prohibit restricted transactions. This is essentially all this law does along with placing enforcement requirements on financial institutions.
However, until the invention of RaffleAmerica.com’s core system, no solution was available that could actually prevent or prohibit restricted transactions on the Internet. With RaffleAmerica.com, problem solved. This is what RaffleAmerica.com’s core system was designed to do. Our patented system recognizes jurisdictional borders on the Internet and determines user eligibility based on user location and residency. With federal requirements addressed, we can now focus on States, Counties, and Municipalities.