Is it legal as a <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com
ffice:smarttags" /><st1:country-region><st1
lace>US</st1lace></st1:country-region> citizen to place a wager or gamble?
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-comfficeffice" /><o> </o>
This is a question that I have always asked and while I was confident in the answer, as of today I am positive. Today I visited my attorney. Not only any attorney but one of the nations leading authorities on gaming law. If you google gambling or gaming law, his name will appear on almost every legal paper you read. He is expensive, but in the line of work I have chosen invaluable.
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At the Federal level, gambling as a casual or professional gambler is LEGAL. The Wire Act covers businesses who are in the business of accepting bets and running casinos. In the case of the United States vs Robert Baborian in 1981 it was established that “Congress never intended to include a social bettor within the prohibition of the statute (the Wire Act) and that Congress did not contemplate prohibiting the activities of mere bettors, even where, as with Mr Baborian, they bet large sums of money with a great deal of sophistication.” In a nutshell this means that no matter how much you bet or how you do it, you are legal.
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At the state level, there are statutes in 25 states that prohibit gambling. But because of this federal level statute not supporting the states statutes, they have never been tested. There has only been 1 person ever brought up on state charges for internet gambling and he did not fight the charges. It is a second degree misdemeanor punishable by $500 and up to 60 days in jail. He paid the fine and moved to another state. So if you live in one of the states that has statutes on the books, and they decide that they would like to test the law on you for the first time in 45 years, you could potentially have a problem. Lets just say that the odds are very long on that happening.
<o> </o>
Enter the Goodlatte, Kyl, and Leach Bills. These bills could pass at any time this year, and according to my attorney are on track to do so. The bills are set up to attack the monitary providers of gambling along with internet sportsbooks and casinos. The bills are not set up to attack the gambler. But here is where it gets tricky. Once one of these bills is law, in order for you to fund an offshore account or bet anywhere you will now be in violation of aiding a criminal enterprise and now you are on the hook. So while the act of gambling is not illegal, the act of funding and supporting a criminal enterprise is illegal. Neteller is an offshore legal enterprise in a sovereign nation – so if they decide to thumb their nose at the <st1:country-region><st1lace>USA</st1lace></st1:country-region> and continue to take transfers from US citizens – there would be little the <st1:country-region><st1lace>USA</st1lace></st1:country-region> could do to them. But they could cut off the source by scaring the <st1:country-region><st1lace>US</st1lace></st1:country-region> public in to not using them by a few timely prosecutions. Not something to play around with. The bill would also make offshore books circumvent normal internet service providers and play “cat and mouse” with emails etc to direct you to their site. In effect, Joe Public will find the barriers too much and just forget about it. That is the goal of the bill.
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There are a line of offshore companies and <st1:country-region><st1lace>US</st1lace></st1:country-region> citizens waiting to challenge the legality of these bills even if they pass. So from what I understand, if this bill passed tomorrow there would be a court injunction very soon putting it on hold until it can be deemed constitutional and legal. This could take years and the favorable conclusion could be that even if the courts deem the law legal – the political climate and public awareness would be at a point where it would be repealed anyway. All speculation, but it does appear that we have a few year window on any of these bills taking hold as firm law at the minimum.
<o> </o>
As I have stated before, you still need to pay your taxes. Not paying your taxes is a crime in and of itself whether the gains are from wages or gambling. But if you pay your taxes and gamble on the net, as of today, you are 100% legal on the federal level and it would be the same odds as winning the lottery 5 times in a row to even be approached on the state level.
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Everything stated in the above editorial is my opinion, and should not be considered legal advice. There are facts referenced above but the conclusions are just my opinion. Before doing anything you should consult your attorney for legal advice and don’t rely on anything in the above editorial to be correct.
ffice:smarttags" /><st1:country-region><st1lace>US</st1lace></st1:country-region> citizen to place a wager or gamble?<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com
fficeffice" /><o> </o>This is a question that I have always asked and while I was confident in the answer, as of today I am positive. Today I visited my attorney. Not only any attorney but one of the nations leading authorities on gaming law. If you google gambling or gaming law, his name will appear on almost every legal paper you read. He is expensive, but in the line of work I have chosen invaluable.
<o
> </o>At the Federal level, gambling as a casual or professional gambler is LEGAL. The Wire Act covers businesses who are in the business of accepting bets and running casinos. In the case of the United States vs Robert Baborian in 1981 it was established that “Congress never intended to include a social bettor within the prohibition of the statute (the Wire Act) and that Congress did not contemplate prohibiting the activities of mere bettors, even where, as with Mr Baborian, they bet large sums of money with a great deal of sophistication.” In a nutshell this means that no matter how much you bet or how you do it, you are legal.
<o
> </o>At the state level, there are statutes in 25 states that prohibit gambling. But because of this federal level statute not supporting the states statutes, they have never been tested. There has only been 1 person ever brought up on state charges for internet gambling and he did not fight the charges. It is a second degree misdemeanor punishable by $500 and up to 60 days in jail. He paid the fine and moved to another state. So if you live in one of the states that has statutes on the books, and they decide that they would like to test the law on you for the first time in 45 years, you could potentially have a problem. Lets just say that the odds are very long on that happening.
<o
> </o>Enter the Goodlatte, Kyl, and Leach Bills. These bills could pass at any time this year, and according to my attorney are on track to do so. The bills are set up to attack the monitary providers of gambling along with internet sportsbooks and casinos. The bills are not set up to attack the gambler. But here is where it gets tricky. Once one of these bills is law, in order for you to fund an offshore account or bet anywhere you will now be in violation of aiding a criminal enterprise and now you are on the hook. So while the act of gambling is not illegal, the act of funding and supporting a criminal enterprise is illegal. Neteller is an offshore legal enterprise in a sovereign nation – so if they decide to thumb their nose at the <st1:country-region><st1
lace>USA</st1lace></st1:country-region> and continue to take transfers from US citizens – there would be little the <st1:country-region><st1lace>USA</st1lace></st1:country-region> could do to them. But they could cut off the source by scaring the <st1:country-region><st1lace>US</st1lace></st1:country-region> public in to not using them by a few timely prosecutions. Not something to play around with. The bill would also make offshore books circumvent normal internet service providers and play “cat and mouse” with emails etc to direct you to their site. In effect, Joe Public will find the barriers too much and just forget about it. That is the goal of the bill.<o
> </o>There are a line of offshore companies and <st1:country-region><st1
lace>US</st1lace></st1:country-region> citizens waiting to challenge the legality of these bills even if they pass. So from what I understand, if this bill passed tomorrow there would be a court injunction very soon putting it on hold until it can be deemed constitutional and legal. This could take years and the favorable conclusion could be that even if the courts deem the law legal – the political climate and public awareness would be at a point where it would be repealed anyway. All speculation, but it does appear that we have a few year window on any of these bills taking hold as firm law at the minimum.<o
> </o>As I have stated before, you still need to pay your taxes. Not paying your taxes is a crime in and of itself whether the gains are from wages or gambling. But if you pay your taxes and gamble on the net, as of today, you are 100% legal on the federal level and it would be the same odds as winning the lottery 5 times in a row to even be approached on the state level.
<o
> </o><o
> </o>Everything stated in the above editorial is my opinion, and should not be considered legal advice. There are facts referenced above but the conclusions are just my opinion. Before doing anything you should consult your attorney for legal advice and don’t rely on anything in the above editorial to be correct.
