Could a private betting exchange be legal in the US?

[SBR_John]

Think about it just for a second.

Lets say you joined a club for say $100.

For that fee you get into a club where players post who and how much they want to bet on and set their own market like an exchange. Only difference is their is no juice, commission, ect., hence no bookmaking. The only thing the club would provide is basically a forum type web site.

I know there is the big problem of transfering the money but lets leave that for later. Would this club be guilty of running a gambling business or the wire act?

[bigboydan]

Interesting question John.

I would have to say it would be illegal, because any type of sports wagering no matter if it's with a sportsbook or privately done is considered illegal in 49 states.

[tblues2005]

Thats a very good question for lawyers to answer on. I would say it might be legal to do this, I am kind of surprised that a casino in Nevada hasn't tried that yet or least checked it out as of yet. That is a way for the government to get out of debt here by getting more tax revenue though.

[bigboydan]

Lets say your paying your dues at a social club. Then lets say that place got raided, and they found people gambling (vegas type action). Correct me if I'm wrong guys, but wouldn't that be considered illegal even if it's done offshore?

I tell ya this much I sure wouldn't try it if I lived in the states

[jjgold]

sports betting illegal period, you also cannot technically make a wger with a friend with no juice either.

[increasedodds]

There is so much wrong information here that it is comical.

Gambling is not federally illegal.

It is illegal to take a vig federally.

It is also illegal to profit from membership fees or even selling drinks in the cases of bars offering poker. (Makes those charity tournies questionable).

It is not illegal to run a sportsbook in many states that makes no money.

In about 7 states online betting is illegal.
In about 25, any sports betting is illegal.

In the other 25, you could offer betting if you made no money.

Some states allow straight bets. Others allow pools, so you'd need parlays.

Now the question is, would it be illegal to have links on your page?

Would it be illegal to make interest on the money?

Who knows and who wants to try...

-Sean

[increasedodds]

BTW, the smart poker rooms now have another location for the cash.

It is going to infuriate authorities when they show up to raid a poker hall and find no money. The good poker rooms are now running cashiers a few miles from the game.

Sean

[jjgold]

Oddsman it is highly illegal even to place a wager with your buddy. I know a guy that got arrested for it, small fine only but had to go to local court.

[EBone]

Check out, All Sports Market. Chris Rabalis (owner of All Sports Market) claims he is as legal as baseball, apple pie and Chevrolet. I don't think I can put a link in here but his concept is interesting to say the least.


E

[raiders72002]

Gambling is not federally illegal.

It is illegal to take a vig federally.

It is also illegal to profit from membership fees or even selling drinks in the cases of bars offering poker. (Makes those charity tournies questionable).

It is not illegal to run a sportsbook in many states that makes no money.

In about 7 states online betting is illegal.
In about 25, any sports betting is illegal.

In the other 25, you could offer betting if you made no money.

Some states allow straight bets. Others allow pools, so you'd need parlays.

Now the question is, would it be illegal to have links on your page?

Would it be illegal to make interest on the money?

Who knows and who wants to try...

-Sean

What are the laws in Illinois?

[WWTSblows]

I think Illinois is one of the strictest states, in regards to anti-gambling laws.

[increasedodds]

The only state to ever try someone for betting online was one of the Dakotas. The guy paid a $250 fine.

FL tried Macpherson and included gambling, but he plead to writing a forged check (Why the case came up anyways)

Many states have anti gaming laws. Only the one Dakota state has arrested someone for betting online. It's just not a crime worth pursuing - much like jaywalking, etc.

It would also take an incredible about of privacy invasion for a state to randomly arrest people.

The guy in Dakota was a grade school teacher and brought up his sports betting in class. The guy in FL forged a check.

If you link it up with something else illegal or act stupidly (Telling your gradeschool class how to gamble...) then the state's hands are tied and they have to file a charge.

-Sean

[bookie]

I gotta believe that some authorities somewhere would find a way to hassle the club whatever some lawyer can make the law say.

A side question is why haven't betting exchanges been more popular? The last one to try, BetBug, just bit the dust recently. 121bets and a host of others before that. I know matchbook is thought to offer some value to small players, but with the two fee I find competitive but not attractive numbers there.

I believe that the reason the exchanges havent' been more popular is that whoever offers a bet is vulnerable to a line change unless they've got a screen and are sitting there watching the bet. If the market is -7 and you put up an offer for -7, -102 there's a good chance your offer will sit there unless the line starts popping to -7.5. So even though it might "only" happen on fifteen percent of your offers you don't realize as big a savings over time as you think you will.

[increasedodds]

Mansion was pretty damn popular - mostly cause they seeded bets with $50-100k.

Most people want to place a bet, not place it and wait a while to see if it is good to go.

Sean