Online Gambling Is Illegal in the US

[Benjamin]

I've been thinking about this more. This thread opened my eyes a little bit on the issues involved.

On the one hand we have Federal regulation of online gaming. Currently that is pretty much non-existant. The Wire Act is the closest thing they've got, and that addresses the business of offering sports bets over telephone lines. They have busted one of the owners of WSEX online sports-book using this, IINM. But, it doesn't address the individual bettor, and it doesn't address offering/playing poker, again IINM.

Currently efforts are afoot to change that state of affairs and make clear federal restrictions on on offering online gambling, and on moving gambling money around. Hypocritically the changes will, in fact, allow intrastate online gambling.

State law, on the other hand, varies by state, but in most states it is probably already illegal for Party Poker to be offering raked games to you, and for you to play them. In NC, where I live, there is a general ban on gambling, Indian reservations and state lottery excepted, so when I place a bet online, or in a home game, I'm committing a misdemeanor. Operating a game for profit is a more serious offence, and the sites are probably violating those related laws by advertising to me, emailing, swapping money, and operating the games I play in NC. Enforcement is problematic, though.

Similar laws are probably in place in most states, which would make offering raked games to you in the state illegal. Some states allow raked games if properly licensed. I wonder how it would go if Party Poker offered California to buy a license, and they changed their rake scheme so that it's no longer a 'percentage game'.

I wonder if there are any states that make offering and operating raked games illegal, but playing in as a participant is not illegal? If that were the case, then the online player may not be breaking a law, while the operator is.

Some states allow unraked home games. Perhaps playing on WPEX, an unraked site, would be legal in these states?

Love to hear other's thoughts and any corrections. Also interested in what the law is in other states about playing in raked home games.

B.