Gambling Sites - whats the deal?

Discussion in 'Legal Issues' started by James12513, Apr 23, 2007.

  1. #1
    Do you need a licence to host say a lottery website or gambling site?
    I'm very interested in this, but don't know the legal stuff first.

    If anyone has any advice, it would really help me if you could post it :)
     
    James12513, Apr 23, 2007 IP
  2. danielbruzual

    danielbruzual Active Member

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    #2
    If you plan on hosting it in the United States you are going to run into a lot of trouble (I don't think gambling sites are still allowed unless they operate on a membership system).
     
    danielbruzual, Apr 23, 2007 IP
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  3. James12513

    James12513 Well-Known Member

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    #3
    ok thanks danielbruzual, so if I design a membership system and allow them to login and select how many tickets they want to pay for the lottery, that would be allowed?
     
    James12513, Apr 23, 2007 IP
  4. eddy2099

    eddy2099 Peon

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    #4
    Yes, you probably need a license.

    I know that you are not allowed to host such sites on a US server as it is against the law.

    But it appears that you should not have much issue in the UK
    http://www.theregister.co.uk/2006/11/03/uk_net_gambling_haven/

    However, it still means you may need to get licenses as they do not want it to end up as a Money Laundering Haven

    http://www.out-law.com/page-4087

    Check with your lawyers as to what the best cause of action would be.
     
    eddy2099, Apr 23, 2007 IP
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  5. James12513

    James12513 Well-Known Member

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    #5
    great thanks +rep :)
     
    James12513, Apr 23, 2007 IP
  6. eddy2099

    eddy2099 Peon

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    #6
    eddy2099, Apr 23, 2007 IP
  7. James12513

    James12513 Well-Known Member

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    #7
    Thank you very much thats great info! I will have a very very big think about what I am going to do.
     
    James12513, Apr 23, 2007 IP
  8. charlinks

    charlinks Guest

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    #8
    You know becoming an affiliate might be a better way to approach this. They have schedules where you will be getting percentage of the income for life. And you don't have to worry about security, licenses, etc.

    You still have to respect the laws in the USA though. www.cj.com has a lot of products in this area as well (but they will remind you not to run anything if you live in the USA)

    On another note... they have one that says is legal www.e-pokerusa.com but it seems very sketchy to me. It's listed on CJ though.

    Cheers!
     
    charlinks, Apr 23, 2007 IP
  9. Alpha_Publishing

    Alpha_Publishing Guest

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    #9
    Anything that smells of a lottery is probably illegal in the United States. Even if you get a license in another country, if you live in the US, you are still probably violating a law. No way a state in the US will grant anyone the right to host an internet lottery.
     
    Alpha_Publishing, Apr 23, 2007 IP
  10. Alpha_Publishing

    Alpha_Publishing Guest

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    #10
    I just noticed your location is the UK. Laws are very different there than in the States. If you don't accept US bets, then you have nothing to worry about US-wise. If you do accept US bets, you might be violating US law, even if you have a UK license.
     
    Alpha_Publishing, Apr 23, 2007 IP
  11. mkat

    mkat Peon

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    #11
    Hi, I was starting a gambling site and I had done a lot of research regarding the gambling laws.

    You can legally run a gambling site in the UK as long as you dont accept US players or players from other countries where online gambling is banned. To run a online gambling site you can get a gambling license from various countries easily. My suggestion would be try Costa Rica, Panama or Antigua. You can easily get a gambling license within a month for $15,000/yr. I got mine from Panama.

    You sites must be hosted outside USA and other countries where gambling is banned. Again hosting in UK is perfectly fine.

    Are you planning to start just a Lottery Site, Online Casino, Poker Site, or a Sportsbook?

    Again I agree with @charlinks that if you want to play safe or are on a tight budget then you may wanna consider becoming a affiliate but then the level of earning from running your own Gambling site is at a whole new level.

    Also keep in mind starting your own gambling site is not cheap. A decent Casino Software costs around $50,000- $300,000. Also if you want to run such a site successfully be prepared to spend at least $20,000 initially on marketting per month. Later you can up that to 100k/mo. If you dont spend at such levels your business wont be successful.

    Anyways if you have any Q's in particular, PM me I will be more than happy to answer you :)

    PS: I was looking for a partner for my gambling venture, I have a thread opened in the business section. Hit me up if you are interested in knowing more details about the venture.
     
    mkat, Apr 26, 2007 IP