|
by Bullajami January has been a tough month for US online sports bettors. First we lost the best online sportsbook - Pinnacle Sports - and then within a week we lost nearly all of our eWallets. Most of us from the US are still waiting on money from somewhere to find its way back into our bank accounts. Count me among that group , as well. I have not placed a sports bet in a couple of weeks and I am planning to wait for the dust to settle and all my cashouts to come home before I do any more betting. In the meantime I have decided to take a deep look at US wagering laws and see what I could find out anbout the legality of online sports betting in the US. Special thanks to http://www.gambling-law-us.com for making the information easy to find and digestible. I encourage anyone with further questions to go to that site for their answers. Here are the questions I wanted answers to before I started my research: Is it illegal for me, a US citizen, to place a sports bet online? Is it illegal for me, a US citizen, to transfer money to (or from ) an online sportsbook? Is it illegal for me, a US citizen, to advertise online sportsbooks on my website?
Here is what I found. The first question is a matter for the Federal Wire Wager Act of 1961. This act was passed into law as a means to combat organized crime gambling rings. The pertinent section describes the applicability of the law: Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.
The language at issue here is "engaged in the business of betting". Federal courts have ruled that this does NOT include casual bettors - even if that bettor shows sophistication and is betting large sums of money. 1. Is it illegal for me, a US citizen, to place a sports bet online? - No, it is not illegal.
The second question falls under the October 2006 Unlawful Internet Gambling Enforcement Act. Once again the statute uses the language "engaged in the business of betting or wagering". This would infer that casual bettors are once again excluded from the law, but this has not yet been tried in court. There is no formal interpretation or precedent. I am confident, however, that this law is intended to be applied as an extension of the Federal Wager Wire Act. Therefore, I will conclude: 2. Is it illegal for me, a US citizen, to transfer money to (or from ) an online sportsbook? - No, it is not illegal.
The third question is also one for the UIGEA. Unfortunately it is not so clear. By providing information and links to online sportsbooks, I may be in violation of 18 U.S.C.2, which states that Whoever commits an offense against the United States or aids, abets, counsels, commands, induces or procures its commission, is punishable as a principal.
It is not yet known whether the Treasury Department and Federal Reserve intend to enforce the UIGEA by holding web affiliates as aiding and abetting the violation of the UIGEA. I will need to wait until more guidance is released from them before I know if it is illegal for me to be an affiliate as a US citizen. 3. Is it illegal for me, a US citizen, to advertise online sportsbooks on my website? - Unknown
So, there it is in a nutshell. US bettors are not violating the law by making bets or transferring money to or from an online sportsbook. I am awaiting further statements from Treasury and the Federal Reserve before I know if I BullsBetting.info is breaking the law by advertising certain sportsbooks. Happy betting! Bullajami is not a lawyer and has no formal legal training.
|
Betting and US Law 
