However, while there are investors willing to invest on the profitability of gambling on the Internet, there are still many investors that are reluctant to pursue an investment on online gambling because of the financial insecurity of these sites. These gambling sites are also known and are purportedly practicing "illegal transactions," since online gambling in the U.S. is prohibited. The lack of confidence in investing on online gambling and insecurity of the financial channels and transactions of these sites stem from the fact that "[t]here is also a question mark over whether U.S. banks and financial services businesses which process online gambling transactions are in breach of law" (Begum, 2005:13).

However, the question of the legality of these online gambling sites are being put into scrutiny. U.S. legislation has decided to deregulate online gambling through the 1961 Wire Act, with an updated version through the proposed bill Unlawful Internet Gambling...
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