Hi, Mr. Cohen. Thanks for posting. (I'd forgotten you sometimes post here.) I'd imagine you know more about Federal law in regards to internet gambling than just about anyone. Personally I'd love to see you write a book.
FWIW, I do agree with you about the distinction between placing a bet (ie, being a consumer), and running a business. Federal law generally prohibits the latter.
It's worth it for folks to remember, though, that state law is just as much law as the federal variety - and that every state either prohibits gambling outright, or limits it to state-owned or state-licensed facilities. And no internet casino/sportbook/poker room has a license from any American state.
I'm honestly not trying to hurt your business (I'm assuming here you still own WSEX). Hell, I gamble everyday - and won one of your tournaments just the other night. It's my personal belief that the (legal) risks of gambling on the internet (as a player) are extraordinarily small - to the point of not being worth worrying about.
But I do think people should understand the legal status of what they're doing, if they're going to do it.
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I'm the guy from WSEX who went to prison.
First, there is no federal law against placing a bet, online or otherwise.
I could write a book here but I just want to make a few points right now. In the early stages of my case, we found cases going back to the telegraph about "Where a bet takes place?" The courts in the early 20th century ruled that the bets took place where they were received. I will try and dig up the cases.
Moving forward to today. The Appellate Body of the WTO ruled that the US has made commitments to Antigua in the area of gambling services. The AB ruled that the US needs to allow Antiguan remote gaming companies access to consumers in the US market. They ruled that the application of Wire Act against Antiguan operations was in violation of the United States' commitments under the GATS.
For details see:
www.AntiguaWTO.com
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