Would it be legal for a company located in NV to broker a bet between a player and a regulated casino? That is, could I call them up and pay them a fee to go to a casino and place a bet for me? They would take on no risk, if the line changes there'd be no bet (or maybe i take the worse line). Can I call a Las Vegas casino up and do this?
-
-
Not legal.Comment -
A. "The Business of Betting and Wagering"
According to §1084(a), anyone in the "business of betting or wagering" is at risk of fine and imprisonment under this statute. Enacted under Congress's power to regulate interstate commerce, the statute prohibits knowingly using a wire communications facility to transmit interstate or foreign bets and wagers. Transmitting information assisting in betting and wagering as well as transmitting the proceeds of bets and wagers to the winners also falls within the statute's ban.
The key term "wire communications facility" is cross-referenced in §1081. "The term 'wire communication facility' means any and all instrumentalities, personnel, and services (among other things, the receipt, forwarding, or delivery of communications) used or useful in the transmission of writings, signs, pictures, and sounds of all kinds by aid of wire, cable, or other like connection between the points of origin and reception of such transmission." This definition appears to embrace the nation's entire telecommunication's infrastructure, and therefore, render online gambling illegal under 18 U.S.C. §1084 so long as the transmission travels interstate. §1084(a) requires proof of the content of the transmission which may present problems in the case of transactions conducted using encrypted transmissions.
In any case, legislation has been offered to correct any deficiencies in the Federal law. The proposed Internet Gambling Prohibition Act of 1997 would add a "§1085 Internet Gambling" to Title 18, and criminalize any betting or wagering in any State via the Internet. The Senate voted to support the Act in 1998, and the House is expected to address the bill in 1999. Once enacted however, an important jurisdictional issue will remain -- the extent to which U.S. law can reach offshore providers, as distinguished from the U.S. Internet users taking advantage of their gambling services?
B. Where Does this Leave the States?
§1084(b) states that "Nothing in this section shall be construed to prevent the . . . transmission of information assisting in the placing of bets or wagers on a sporting event or contest from a State or foreign country where betting on that sporting event or contest is legal into a State or foreign country in which such betting is legal."
Congress has given the individual States the power to regulate gambling within their own borders. Since the Federal statute focuses on interstate commerce, gambling is permitted as long as the activity remains within the state. Congress emphasizes the State's power in §1084(c)--"Nothing contained in this section shall create immunity from criminal prosecution under any laws of any State." Since States are free to regulate within their borders, they are free to regulate online gambling.
For instance, the State of New York investigates and prosecutes online gambling companies for promotion of gambling activities under Article 225. Currently, such prosecutions are limited to companies physically located within the state's borders. State prosecution of online gambling providers located out of the state, but accessed by state residents may be possible, given Missouri's efforts to prosecute the Coeur D'Alene Tribe of Idaho. Recently, Missouri's case was remanded to the lower courts for further litigation of the jurisdictional issues. The Coeur D'Alene operated an Internet lottery service accessible from Missouri residents' home computers. The Indian Gaming Regulatory Act governs gambling activity on Indian reservations, but the extent to which it preempts state action in the Internet arena is uncertain.
Hope This Helps. Short answer in my opinion is no.Comment -
The key here is
Congress has given the individual States the power to regulate gambling within their own borders. Since the Federal statute focuses on interstate commerce, gambling is permitted as long as the activity remains within the state.Comment -
Thanks, I greatly appreciate the timely and thorough response.Originally posted by Aces
The only loophole I could think of is if I'm a business who brokers bets with people in Las Vegas. Someone in Vegas would contact me and I would do the legwork in terms of placing the bet for him at a legal sportsbook. I would essentially place the bet as an agent for him. Since I would require him to be in state, I don't think this would violate interstate commerce. (Unless he uses a phone whose service runs throgh another state?). Would I need a gambling license for this?
This is useful for the bettor in that someone else does the legwork that he could just as easily do himself. Now whether he accepts orders from people out of state (an illegal activity), that would be up to me and my hands would be clean.
Feasible?Comment -
Originally posted by Korchnoi
I'm not sure if it is still the case, but Nevada used to prohibit people from acting as agents for bettors UNLESS the agent received a piece of the profits.
I'm not even sure where/when I heard this, but I'm pretty sure it was from a source that I felt was reliable.
That being said, the Wire Act could come into play if said agent is in Nevada and the person for whom said agent is acting is in another state.Comment -
The key would be that the business would only deal with people from Nevada. I would assume that many people from Nevada who use the service might make deals with people out of state. That might not be legal (the companys individual clients may be breaking the law), but what the business is doing would be legal...?Originally posted by kokoComment -
Korky forget it before you get locked up, its not worth the hassle.Comment -
i think you're right.Originally posted by jjgoldComment