Is it legal to bet on an exchange in the US?

[beaumo1985]

Something like betfair where you can exchange bets with another user for example, offering odds that other users can accept, etc

Is this too close to bookmaking? (Which would be illegal in most states).

What about if its offshore?

[Optional]

If there was any possible way to do it under current laws then Betfair would be.

And users around the world would be cheering about having Americans back in the pool.

[beaumo1985]

I'm referring to the side of the punters, not betfair itself.

Contrary to common belief, there is no law against placing bets online in the US.

However, If you use an exchange are you acting as a 'bookmaker" and therefore breaking the law?

[Optional]

I think the problem comes in when you want to transfer money to and from the central gambling enterprise.

I've mentioned a few times that a blockchain based peer to peer exchange without a centralized ownership would be interesting to see if it worked. But there is no financial incentive for anyone to invest in building something so complex when they can't own it.

[Hareeba!]

I'm referring to the side of the punters, not betfair itself.

Contrary to common belief, there is no law against placing bets online in the US.

However, If you use an exchange are you acting as a 'bookmaker" and therefore breaking the law?

I don't believe you could be seen as acting as a bookmaker if you are a mere punter using an exchange.

Those in trouble would be the operators of the exchange.

[Bill Dozer]

I think the problem comes in when you want to transfer money to and from the central gambling enterprise.

I've mentioned a few times that a blockchain based peer to peer exchange without a centralized ownership would be interesting to see if it worked. But there is no financial incentive for anyone to invest in building something so complex when they can't own it.

Thats interesting. Because as the bettor, I don't believe it is illegal to transfer you money, just illegal for the processors to knowing do so, especially under a fake merchant code.

But when you start doing peer to peer, are you transferring someone else's money?

[Optional]

Thats interesting. Because as the bettor, I don't believe it is illegal to transfer you money, just illegal for the processors to knowing do so, especially under a fake merchant code.

But when you start doing peer to peer, are you transferring someone else's money?

Not certain, but there would have to be some sort of holding account or escrow service that releases matched bet funds to the winner. I am thinking that is the key under current laws. If no one owned that, then there is no one to come after.