Is This Legal?

As the football season approaches we had several requests to clarify the legality of betting online with an offshore bookmaker. The bottom line on the million dollar question of “Is this legal”, is no – according to the Catherine Hanaway, US Attorney in St. Louis, Missouri. She testified this past winter in front of the

As the football season approaches we had several requests to clarify the legality of betting online with an offshore bookmaker.

The bottom line on the million dollar question of “Is this legal”, is no – according to the Catherine Hanaway, US Attorney in St. Louis, Missouri. She testified this past winter in front of the House sub-committee that the Department of Justice sees all Internet gambling as illegal. However, she has not gone on to prosecute racing sites like BrisNet or YouBet for accepting racing wagers or the NJ lottery for it’s online Slingo game. So clearly, her statement was pokies online a bit misguided.

Unfortunately for gamblers, the UIGEA did clarify all of this to some extent and does provide some backing for her statement. In essence, the US government now bears no distinction between the corner bookie or speakeasy card game and the online operator – both are accepting illegal bets. This is why some of the largest gaming companies, and all of the publicly traded ones, exited the US market after the November 2006 passage of the UIGEA. Certainly investors would not sink money into a company that is accepting ‘illegal’ bets.

Still, we have not heard of a single gambler being prosecuted. In fact, an Arizona case in 2006 found a local bookie using a price-per-head service offshore and the local sheriff organized a year-long sting that successfully busted the entire illegal betting ring. They also were able to garner his complete list of clientele. And, the sheriff who headed the operations came out at the time stated that he also expected to net 200 to 300 other people who made bets. None have been indicted to date. In addition, back in February of this year, another ring, this time in Massachusetts, was popped, again using the Internet to process wagers. This time the lead officer was asked if investigators might take legal action against the bettors themselves and said, “Historically, we haven’t.”

So, even though these bets may be construed as illegal, online gamblers should have little fear of prosecution. It’s all about the money……and there is not much to be gotten from the gamblers. But there is from the operators and banks who process these illegal transactions. After all, Neteller coughed up $136 million, the US government seized almost $20 million from FirePay and Catherine Hanaway’s office was able to extort $31.5 million from Miscrosoft, Google and Yahoo for ‘past promotion of illegal gambling’.

Does the $100 online weekend football bettor have to worry about heading to the can or forfeiting their life savings? Probably not, but the question and subsequent cloudy answer is still clearly on the minds of many players nearly 2 years after the passage of the UIGEA. With no indictments against bettors, it is fairly safe to assume that the bettor, though not shielded from prosecution, can wager with little worry.

And, doesn’t this country have enough problems with banks going under, two wars that appear will last for years to come and an economy that dips lower everyday, without going after its own citizens for what they do with their own money in the privacy of their own homes? The answer here is clearly a resounding yes – leave the gamblers alone to their own vices!

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  • Geronimo Pender
    July 31, 2008, 1:38 pm

    Hey they should leave us alone and let us play. How can you let them bet in Nevada and we cant bet in Florida. I’ve always thought why cant we bet online with a las vegas casino’s sports book. Problem solved

    REPLY
  • cedric
    August 24, 2008, 5:13 pm

    I strongly agree with geronimo, it’s my hard earn money I should be able to do what I want with it, as long as I pay my taxes. Our government is the most corrupted law makers in the world. Wagering on sports is no different from the stock market, buying lotto tickets, trading, buying mutual funds etcs. It’s all investing!!! It’s just that the government hasn’t come up with a way to regulate sports wagering, so they just rather ban it! And don’t give me this crap that sports wagering is an addiction, hell buying lotto tickets is an addiction, you don’t see the government trying to ban it. It’s because they have it regulated and make large amounts of money off of it. We have way bigger problems in the us like dogfighting, drug smuggling, illegal animal smuggling, older men praying on early teenage girls and the list goes on and on. The bottom line is the government will never be able to stop it and should just embrace it and try and find a way to regulate it or just let us sport wagers be! Other countries already embrace it, the us needs to follow suit. But If It ever came down to the us really outlawing sports betting, I’ll just move to a european country!!!!

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  • woodstocker
    September 9, 2008, 12:01 am

    to the powers that be law etc. —The Stock Market is a gamble. Marriage is a gamble. Medicine is a gamble. What is not a gamble? Lots of tax money to be made here. Dont be stupid. Take the dough and everbody is happy!

    REPLY
  • bandit
    September 11, 2008, 8:19 pm

    researched this subject a little myself. i am no legal eagle though and still have some questions. Federal law to me remains cloudy and the wire act doesn’t seem very applicable to the casual internet bettor. So to me federal law doesn’t really scare me at this point in time. However, state law on some basic level, in my state does declare sports gambling illegal (without specifically addressing internet gambling), and the UIGEA seems to have solidified the thought that internet gambling is illegal. My question is, although the individuals placing the bets have not been targets in the past, would it not be rather easy if the feds did some how shut down an offshore sportsbook for state authorities to gain access to all the personal info these sites require to open an account and follow the trail right back to my home PC. Like I say I am no legal expert and obviously this is a complex subject but would be curious as to anyone else’s thoughts. Obviously, I agree with the above posts.

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