Online sports betting siteis online gambling legalIs online gambling legal in the US?

March 13, 2018 | By kDfL4q | Filed in: Online sports betting site.

The odds are always against you when you gamble, so it pays to play at a casino that offers good odds.I spent some time looking for an online casino with good odds, and I found it in Bovada. Let me first tell you about the competition, though.

Its disappointing that most online casinos are greedy when setting the odds on their games.They think theyll make more money by setting the games tighter, so the player has less chance of winning, but theyre wrong. Most gamblers eventually gamble away all their playing budget anyway. Theyre going to lose the same amount of money no matter what, the only question is how long it takes them to do so. And when they play at a tight casino and lose quickly, theyre less likely to return.

A casino which offers good odds will make just as much money as a tight casino,because the players will usually gamble away whatever they deposit anyway, no matter what the odds. The only difference is that with better odds, theyll get to play longer before they go bust. And that means they had more fun in the process, and theyre more likely to return.

Bovada is one of they few casinos that understands this.They offer games with good odds, knowing that if your money lasts longer, youll be a happier, loyal customer. Among their offerings are:

You dont have to play at Bovada, but wherever you play, make sure they offer odds at least this good!

All in all, I think Bovada is the best bet for U.S. players.

Also, know thatParkinsons drugs encourage gambling.Play these

Also, know thatParkinsons drugs encourage gambling

We answer the question:Is online gambling legal in the U.S.?by Michael Bluejay, • Last Updated: November, 2015.

Im not a lawyer. Do not rely on this article as legal advice. I also cant guarantee to have heard of every relevant case.

Short answer:Not illegal under federal law, possibly illegal under state law, but even there prosecution is rare.

There is no U.S. federal law against gambling online

There is no U.S. federal law against gambling online.On the federal level, gambling online is perfectly legal, because of the lack of a law against it.Its possible to run afoul ofstatelaw (especially in extremely conservative states), but even there prosecution is extremely rare. This article focuses mostly on federal law.

U.S. Attorney Catherine Hanawayadmitted in a House hearingthat just placing wagers online doesnt violate federal law.No American has ever been arrested, indicted, or prosecuted by the feds for gambling online, because theres no law against it. If online gambling were illegal I wouldnt be running his website for fifteen years, as an American citizen, living in the U.S., using my real name. And I occasionally gamble online, too, and I admit that publicly, like Im doing right now.

This might be confusing because other outlets erroneously reported that Congress banned online gambling in 2006.Those reports are simply wrong. The 2006 law makes it illegal for banks to move gambling money when the bets arealreadyillegal (like from a state law), but doesnt make it illegal forplayers to make bets. The law simply does not create or extend any ban on gambling itself. In fact, the law says quite clearly, No provision of this subchapter shall be construed as altering, limiting, or extending any Federal or State law or Tribal-State compact prohibiting, permitting, or regulating gambling within the United States. If you want to check for yourself, heres thefull text of the law.

(Its against federal law for a site to take the bets, not for you to place them.) Federal law doesnt specifically allow or prohibit sites from taking casino or poker bets, just sports bets. For many years the Dept. of Justice

the Wire Act to prohibit sites from taking casino/poker bets too, but most legal observers disagreed, and in Dec. 2011 the DoJ finally agreed that the Wire Act doesnt prohibit sites from taking casino/poker bets.

AdvertisingPublishing advertisements for online gambling isnt specifically illegal, and it would be quite a stretch to make a case under a different statute (like racketeering or conspiracy).Small publishers (like me) have never faced fed action running ads for online gambling. The only publishers to face penalties were some huge publishers (Google, Yahoo, and Microsoft, in 2007), and a mid-size publisher in 2006 (The Sporting News). I wish they had contested the charges, since legal observers say they werent breaking any law, but each simply paid a fine to end the matter quickly. None ever faced any criminal charges. The Sporting News fine was equal to the money theyd collected from gambling ads. Googles penalty was less than half a single days profit for them.()Other publishers who took ads (like Esquire, who ran Bodogs poker ads) were warned by the DoJ not to take them any more, stopped doing so, and faced no penalties.

State lawsSomestatesmight have laws against online gambling, but even there prosecution against players is rare.I know of only two cases a player ran afoul of state laws (in extremely conservative states), both of whom were charged under their statesgeneralanti-gambling laws, not any specific anti-online-gambling law. The first was Jeffrey Trauman ofNorth Dakota, who in 2003 paid a $500 fine on what was probably over $100,000 in online sports bet winnings.(Gambling & the Law)The other was online sports bettor Roland Benavides ofOklahoma, who was charged in 2011 and in 2012 received a deferred sentence (which means that if he doesnt violate the terms of his probation, he will likely face no jail time).(News OK)Some states have gone the other way and legalized online gambling in at least some form. (See the bottom of this page.)

Rather than just considering the law, its more useful to look at thepotential riskof each activity.That is, which activities are more likely to result in a fine or maybe even jail time? Below is my take on how things stack up, from most risky to least risky.But first, some important caveats:

Ill consider only federal law, not individual state laws.

The law and the enforcement are constantly changing, and whats true today could be different tomorrow.

I dont guarantee to have heard of every relevant case.

Im a layperson, not a lawyer, and god help you if you rely on this article instead of seeking appropriate legal counsel for your situation.

Taking sports bets on a server located in the U.S.

Facilitating the transfer of funds to online casinos (payment processors), and then visiting the U.S.

In December 2011, after they prosecuted the cases below, the feds finally agreed that poker bets arent covered by the Wire Act.

•FullTilt Poker, PokerStars, Absolute Poker(2011)

Accepting advertising for Internet gambling, smaller media

Buying advertising in a U.S. publication as a casino, poker room, or affiliate

Taking bets (i.e., operating a casino, sportsbook, or racebook) on a website located in the U.S. is assumed to be illegal, and nobody does this in the U.S. for that reason. All Internet gaming websites are located in other countries where its legal for them to operate. (The U.S. government maintains that its not legal for them to serve U.S. players.)

Taking sporting bets over the phone lines is clearly illegal thanks to the Wire Act.

BetOnSportstook bets over the phone, and were blatant about it, buying big billboards in the U.S. advertising their phone number. They were also really big potatoes, taking in $4.6 billion wagers from 2001 to 2005. In July 2006, their then-CEO, David Carruthers, was arrested while changing planes in Texas on the way to Costa Rica from the U.K. In April 2009 he pleaded guilty to federal racketeering charges, and in January 2010 was sentenced to 33 months in prison. The companys founder, Gary Kaplan, was arrested in the Puerto Rico in March 2007 and in November 2009 was sentenced to four years in prison and ordered to forfeit $44 million in revenue. (He was reportedly released in Oct. 2011, according toGambling911.) Kaplans brother and sister pleaded guilty in June 2009 to two felony conspiracy charges and agreed to turn over more than $6 million held in Swiss bank accounts. They were also sentenced to 10 months of house arrest. In December 2009, the company itself was fined $28.2 million.(GPWA,USA Today,The Register)

Most observers agree that the Wire Act applies to online sports betting. The feds sure think so.

In February 2012, the feds indicted Calvin Ayre, founder of Bodog, along with three other Canadians, James Philip, David Ferguson and Derrick Maloney. But as I write this, the feds dont have anyone in custody, and many are wondering whether theyll actually be able to find the accused in the foreign countries they reside in. Ayre et al were charged with running an online sports gambling business, and money laundering. The former carries a possible sentence of five years, and the latter charge, years. The feds also seized the domain, which didnt matter much, since Bodog had been smart enough to move its business to other domains (like months before the feds seizure.

Small operators (2011).In May 2011, the feds issued indictments against some small companies taking sports bets online. It also seized their domain names.(Casino City)

Sportingbet (2006).While federal law is murky, some new state laws are not. In September 2006, the chairman of London-based Sportingbet was arrested in New York by the request of Louisana authorities for violating Louisianas ban on Internet gambling. One wonders why Peter Dicks thought it would be a good idea for a chairman of a UK-based Internet gambling operation to visit the U.S. right after the CEO of another UK-based Internet gambling operation just got arrested after visiting the U.S. (David Carruthers of BetOnSports, above). Perhaps he thought hed be safe because unlike BetOnSports, Sportingbet wasnt pushing the envelope on phone-based bets. He also probably had no idea that an individual U.S. state would consider his company to be breaking the law and would have him arrested over it.(iGamingNews)

World Sports Exchange (2000).American Jay Cohen located his sportsbook offshore in Antigua, but when he returned to the U.S. but when he returned to the U.S. he was arrested, and in 2000 he was convicted, fined $5000, and sentenced to 21 months in prison, of which he served 17.(NY TimesGambling 911)In January 2016, his business partner, Haden Ware, returned to the U.S. from Antigua to surrender, and pleaded guilty, with sentencing set for May 9. Hed been a fugitive since 2002.(AP)

Gamblers used to get money in and out of casinos with a service called Neteller,

which is kind of like PayPal. But in January 2007 the founders of Neteller were arrested in the U.S. and charged with money laundering.

A few days later Neteller stopped serving U.S. customers.

Neteller eventually paid a big fine and agreed to stop serving U.S. customers. (As a result, its now harder for players to get money into or out of an online casino; heres our article that explainshow to make deposits and withdrawals.)

Some processors handle only payments to players from the casinos (sending checks to the players), not helping players get moneyintothe casino. These havent been safe either:

InJanuary 2011the feds seized nearly $8 million from processors serving PokerStars, Full Tilt Poker, Ultimate Bet and Absolute Poker.(Forbes)One processor, Ira Rubin, was sentenced to three years.(ESPN)Another, Bradley Franzen pleaded guilty in May 2011,(Forbes)though as of Nov. 2015, I cant find any report of whether he was actually sentenced. Absolute Poker co-founder Brent Buckley was sentenced to 14 months for defrauding banks.(iGamingBusiness)The whole case is explained in detail onWikipedia.

Douglas Rennick who ran a Canadian-based processor was arrested in

, forfeited $17 million, but didnt get any jail time.

feds seized money in accounts belonging to payment processor eWalletXpress. The company was forced out of the U.S. market.

Daniel Tzvetkoff (founder) and Andrew Thornhill of the payment processor Intabill were charged with conspiracy, money laundering, and bank fraud in

. Thornhill pleaded guilty in June and in October was sentenced to three months in prison and fined $25,000.

The Feds seized $13 million from Ahmad Khawaja and Allied Wallet in

In 2003 the U.S. Dept. of Justice sent a letter (PDF) to the National Association of Broadcastersand to Google, Yahoo, Microsoft, The Sporting News, warning them that accepting ads for online gambling could be illegal. So they all stopped accepting ads. In reality, it doesnt appear that taking ads for casino & poker is illegal at all, since online casino & poker themselves arent illegal. Only the ads for online sportsbetting would have been clearly illegal. But all those warned stopped running the gambling ads anyway.

The Sporting News (TSN) took its time in stopping the ads(six months), which pissed off the government, which three years later fined them $7.2 million, in January 2006. The settlement represents TSNs profits on the ads for the three years it accepted them (2000-2003), and was paid with $4.2 million in cash, and $3 million in public service ads in its own publications explaining how online gambling is illegal.(more from theCorporate Crime Reporter)

In December 2007 the three big Internet giants paid a fine for accepting ads for online gaming.

Googles fine was only about a third of a single days profit.

The three companies had actually ceased taking online gambling ads about four years before the settlement, when they got the warning, but the feds fined them anyway — years later.

Esquire, 2005.In April 2005 the feds subpoenaed Esquire magazine for taking ads in its March issue for online poker operator Bodog.

The Dot-Net Workaround.Many online operators found a way around ad restrictions years ago: They advertise theversion of their website, which is a play-for-free space. Of course, theyre hoping that players will click from there over to the.comversion and wager for real money, or that players will just type in.comout of habit.(NY Post)

The webmaster of the portal was indicted by New Jersey authorities in Nov. 2004 for facilitating gambling. The affiliate apparently took money from would-be players directly in order to help them place bets. It seems that if he had simply advertised the gambling operations and not gotten directly involved he probably would have been okay. Even so, his sentence was light: the eight days hed already served in jail, $1330 in fines, and 90 days of community service.

Taking casino/poker bets online(Risk Level: 3)

Offshore companies taking bets from Americans for poker and casino games isnt against the law.In 2002 the U.S. 5th Circuit Court of Appeals ruled that the 1961 Wire Act applies only to sporting events and contests and not gambling in general.(World Law Direct)But that didnt stop the feds from prosecuting offshore poker rooms anyway, through 2011. Then in Dec. 2011, the feds finally agreed that its only sports bets that are illegal to accept online, not casino/poker bets. Thats got to be cold comfort to the poker sites the feds busted earlier. But in any event, now that the feds have supposedly come around, Im downgrading the risk of taking casino/poker bets online. Of course if there are more prosecutions then Im moving the risk right back up.

Feds seized the domain names of these three online poker sites on April 15, 2011, and charged 11 individuals with bank fraud, illegal gambling and laundering billions of dollars.(PokerListings)But this wasnt just about online gambling—FullTilt is alleged to have not kept players money in segregated accounts like they were supposed to, and in fact its operators embezzled millions of dollars in player funds, and thus was unable to repay players in full when the government shut them down. Of course, this is why people such as myself are saying that online gambling should belegalized and regulatedto protect the players.

Another controversial aspect of this case is that the feds seized the .com domain names of the poker rooms in question, which they clearly had no right to do, since they didnt have that kind of jurisdiction — nobody does, since domain names are international. As attorney Nelson Rose said, The next to step through could be an Islamic country, which outlaws alcohol, seizing the worldwide domain names of every retailer and restaurant that advertises beer or wine.(Casino City Times)

Note that the feds didnt seize the domains at the registrar level, they went straight to the .com registry, which happens to be located in the U.S. So companies who think they can shield themselves by registering their dot-coms with foreign registrars are quite mistaken.

In July 2012, Full Tilt CEO Ray Bitar was arrested for the April 2011 indictment.(GPWA)He faces the potential of life in prison. The same month, Brent Beckley, an owner of Absolute Poker, got a 14-month sentence for deceiving banks about the nature of his companys transactions.(Reuters)(Note the technicality they got him on: Not charged with running an online gambling site, but rather charged with misleading banks about the transactions. Its the moving the money through the banks thats illegal.)

Party Gaming (2008, poker).In December 2008 Party Gaming co-founder Anurang Dikshit pleaded guilty to violating the 1961 Wire Act with his poker site (even though the Wire Act doesnt apply to poker) forfeited $300 million, and was sentenced to one year of probation — avoiding jail time. Its a sad world when youre forced to plead guilty to breaking a law that doesnt exist.(Forbes)In April 2009, Party Gaming itself agreed to $105 million to avoid prosecution.(GPWA)

(Risk Level: 3)Its only themajormedia players who have gotten heat from the government for accepting gambling ads,and the only penalty has been fines, not criminal charges. All of theminormedia has been spared so far. Even Casino City, the largest website on the Internet which carries online gambling ads, hasnt received a cease and desist notice from the government.

Of course, just because publishers havent faced heatyetdoesnt mean they never will.Publishers run the risk of being charged wth three separate crimes.:

. In short, advertising something thats illegal, is also illegal. Since online casinos & poker arent illegal there should be little problem, but advertising online sports wagering could be a problem, because sports betting violates the Wire Act. I dont run ads for online sports on Vegas Click.

getting a percentage of player losses when they refer players to an online gambling site. But the argument could be made that if you share in the gambling profits directly, then youre in the business of gambling, and could face the same charges that the gambling operator itself faces. Here again, the gambling operation itself would have to be illegal in order for a publisher to have this liability. Casino and poker arent specifically illegal, though sports betting definitely is. One way around the Being in the Business risk is to sell your adspace for a flat monthly fee, rather than as an affiliate who gets a percentage of sales. Thats what I do, and what the Wizard of Odds does, for that very reason. However, very small publishers will often have a hard time getting gambling sites to pay a monthly fee rather than on an affiliate basis. I dont know how CPA (cost-per-acquisition) fits into this, where you get paid for every new player you refer, regardless of how much they win or lose, though I suspect the risk would be somewhere between revenue-share affiliate and monthly-basis sales.

Conspiracy is two or more people planning a crime. So basically, any time a crime is broken and more than one party is involved, the feds can tack on a conspiracy charge. As with the others, this requires that some other law actually be broken first.

Casino City case.In August 2004 Casino City sued the DoJ to establish its right to accept ads for Internet gambling. A judge dismissed the case, saying Casino City didnt have standing because it hadnt received one of the cease & desist letters. Casino City filed an appeal, but before it could be heard, Casino City withdrew from the case in February 2006, apparently because they felt that theyd made their point: If the government ever tells Casino City that it cant accept gambling ads, Casino City will fight.(Lawrence Walters, Esq.)

State Law.Even if one doesnt run afoul of the feds, theres a chance that state government will come calling. In June 2006 the state of Washington advised the owner of the gambling portal that advertising online gambling violated Washington law. The site owner took the site down, and it appears that he faced no penalty.(Poker News)

The Future.Again, I dont know of any small publisher whos been hit for running ads, though I cant say that will never happen. My guess is that small publishers would get a warning letter first before any criminal indictments were made. Probably the biggest risk is that the government might seize the domain name, so that even if there were no criminal charges, the publisher might be deprived of their livelihood.

Buying advertising as a casino, poker room, or affiliate

The only buyers of advertising who have been targeted have been offshore sportsbooks.

Casino and poker operators havent faced any action. While the DoJ waved a finger at Esquire for taking Bodogs poker ads, their attention was directed at

, not the operator, Bodog. Affiliates and portals have never received attention from the government, so far as we know.

Even a U.S. Attorney admitted in 2007 thatplacing wagers online doesnt violate federal law. As attorney Nelson Rose said, There is no federal law against being merely a player. About half the states do have ancient laws on the books that sometimes make it a crime to make a bet. But you have a better chance of winning the World Poker Tour than of being arrested.

So far as we know, no U.S. citizen has ever faced federal charges for gambling online.

Now, two players we know of were charged under theirstatelaws. Jeffrey Trauman of North Dakota was charged in 2003 for making sports bets online, but he likely attracted attention since his winnings seemed to be over $100,000.(Gambling & the Law)And Roland Benavides in Oklahoma was charged, possibly attracting attention because hes also a police officer.(Norman Transcript)Oklahoma doesnt specifically outlaw online gambling, but their draconian statutes outlaw just aboutany kind of gambling whatsoever, so Benavides was charged under the general gambling statute.(News OK)In 2012 he received a deferred sentence, which means that if he doesnt violate the terms of his probation, hell likely face no jail time.(News OK)

I dont have the resources to cover all the various State laws, but heres a little bit anyway.

Delawarebecame the first state to legalize online gambling, in June 2012, and the third to launch (Nov. 26, 2013).(USA TodayDelaware Online,)

The District of Colmbiabecame the first jurisdiction to legalize online gambling in the U.S., in April 2011. However, the measure was repealed in February 2012 before it ever became active.(NY Times)

AKentuckyjudge agreed to allow Kentucky seize 141 gambling-related domain names, since online gambling violates Kentucky law. This was plainly absurd — by that logic any country could seize any domain anywhere in the world if the website happened to violate local law. The Kentucky Court of Appeals quickly overturned the action, but then the State appealed, and now the court is saying that the domain name owners have to come forward or else risk losing the domains. However, if they appear in court thenU.S.authorities might arrest them for operating online gaming sites.(EFF2008,KY appealedin 2009,Must appear rulingin 2010 )

New Jerseybecame the third state to legalize online gambling (poker + casino), signed into law in February 2013, and launching on Nov. 25th.(NJ Poker Online)

Nevadabecame the first state to legalize gambling (well, poker at least), on Feb. 21, 2013(CBS)and launching on April 30.(LVRJ)

InNorth Dakota, Jeffrey Trauman paid a $500 fine on what was probably over $100,000 in sports bet winnings.(Gambling & the Law, 2003)

Oklahomadoesnt specifically outlaw online gambling, but their draconian statutes outlaw just aboutany kind of gambling whatsoever, so when police officer Roland Benavides was caught placing sports bets online in 2011, they charged under the general anti-gambling statute. In 2012 he received a deffered sentence (which means that if he doesnt violate the terms of his probation, he will likely face no jail time).(News OK)

InWashingtonState, its afelonyto play poker online, punishable by up to five years in prison and a $10,000 fine.(GPWA2010,PokerListings2008)

Old Summary of State Laws.Chuck Humphrey has asummary of state gambling laws, but as I write this in Nov. 2015, it hasnt been updated since 2007. According to the list, at that time only Illinois, Indiana, Louisiana, Montana, Nevada, Oregon, South Dakota, Washington, and Wisconsin had express prohibitions against Internet gambling.

Before you throw down your hard-earned cash in a casino, PRACTICE FIRST!Learn the games with play money where it doesnt cost you anything if you lose. Seriously.

I like Bovadas practice games the best, because you can play right away without registering for an account. Most every other online casino makes you give up your email address just to play the games ugh. Thats why Bovada is the only online casino that gets space on my site. I hope other casinos will eventually start treating their visitors like human beings rather than walking wallets, but until they do, theres Bovada. One click and youre in.

I believe everything herein to be accurate, but Im not responsible for errors or omissions. Im pretty irresponsible, actually.

Gambling Problem?Call the hotline, andread this. Also,Parkinsons drugs encourage gambling.


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