is it legal to wager money on games of skill online?

[geormiet]

Would it be illegal for a us company to operate a website that took wagers on a game such as chess, or starcraft?

If not, what about a tournament with an entry fee and a prize pool featuring chess or starcraft?

[PropPlayer]

To my knowledge it is legal. The backgammon sites have pushed that their business is legal because it is a game of skill. I’m no expert but my understanding is yes its legal.

[bachikarn]

So party gammon is legal? Aren't party poker and party gammon accounts linked? So couldn't want deposit money to play gammon then use some of it to play poker?

[CasinoPimp]

Yes it's legal except for a couple of states. In fact some of the sites have a skill version of blackjack that's fun to play. Most of the skill game sites list in their t&c's the states that they can't allow players from.

[furyshade]

the bill states that games like poker are illegal partially because they have tournament with prize pools based on the sum of their entry fees, games like starcraft or chess usually have preset payouts, therein are legal

[Ron Burgundy]

"Skill" games for money are legal in most states. The problem is that the definition of "skill" is completely bogus. Solitaire is considered a game of skill, while poker is not.

Just go on msn.com and look at the games there. Some are for real money, and have nowhere near the skill element of poker.

[ianlippert]

[ QUOTE ]
"Skill" games for money are legal in most states. The problem is that the definition of "skill" is completely bogus. Solitaire is considered a game of skill, while poker is not.

Just go on msn.com and look at the games there. Some are for real money, and have nowhere near the skill element of poker.

[/ QUOTE ]

Well I guess that online poker is illegal now we should all become professional Bespelled players. Whos with me? Mason when are you going open your Bespelled forum for us? lol, Bespellaments!

[Copernicus]

MSN cash games are considered sweepstakes, which are goverened by state law. From their TOS:

"The rules governing sweepstakes, contests and tournaments with entry fees and/or prizes are established by individual states, not the federal government. If you reside in any of the following states, you cannot participate in fee-based tournaments with prizes: Arizona, Arkansas, Delaware, Florida, Iowa, Louisiana, Maryland, South Carolina, Vermont, or any other jurisdiction in which participation in the games and tournaments offered on this Site is restricted by law. VOID WHERE PROHIBITED OR RESTRICTED BY LAW. "

Its been several years since I had a legal opinion prepared on sweepstakes laws by state, and things may have changed, but the common feature was that if there was an entry fee there had to be an alternative "free" way to enter. "Free" allowed nominal fees such as "shipping and handling". So my guess is that MSN gets around the gaming laws by charging minimal "administrative fees" that are considered no more than nuisance level.

The skill element probably has little or nothing to do with the legality..just the amount charged and some sort of "sweepstakes" distribution method.

[geormiet]

Ok then...how hard would it be to convince the government that poker is a game of skill?

It was done in Cali already, no?

[erastank]

Not hard at all. I just made a post about this. In 1985 Billy Baxter argued and won in 2 courts that poker is a game of skill and that his tourney win should be taxed as earned income. I think that PS could make an argument since they only offer poker.