A new State Legislative idea

[permafrost]

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A 'skin' can reside in any computer server. Thus, it is made and received within the state. It does not say the other person(s) participating have to be in the state as well. Nor does it specify it must be a single state system.

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Yes it does say all participants have to be in the state, that's the meaning of the intrastate "exemption". An out of state resident can't "initiate" a bet in the authorizing state; the bet is no longer "exclusively" intrastate.

That still leaves very viable opportunities for dealing lawful online poker in most/all states.


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Example: One state sells tickets to a muliti-state lottery online to residents of that state only, however, most participants are not from that state, the states then pool the money. There is no reason they cannot do the same with in other online gaming.
An area I am going to explore a little more.

obg

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The MUSL model and the horse betting model are both good. We have a ways to go before we get to those levels, but first get a few states allowing online poker businesses, with those models as a further goal.

[Skallagrim]

For once I am not disagreeing with you permafrost, but there has been ZERO movement along the lines of trying to get individual state online poker sites. Nevada already has a law that looks to do exactly that, but no one has even sought a license, from what I have been told. Apparently the cost of setting up a site is just to great in a market limited to one state, and where the players in that state can very easily bypass it for other "illegal foreign" sites (that will probably have cheaper rake).

But a money transfer service is far cheaper to set up and run. In fact, having the stamp of government approval, it ought to be able to make deals with banks to transfer money far cheaper than any one else out there is currently doing, even with a % going back to the state.

The market viability of a money transfer service that is cheaper and easier than other current options and under which you could legally play AT ANY SITE seems pretty obvious. Why would a NH resident choose ePass type fees with dubious legality when they could play at any site (even Party!) legally by using a cheaper money transfer service.

The only reason not to use it would be to hide from the IRS, not a good reason in my book.

It being a hot Friday afternoon where my attention can no longer focus on real work, I have drafted the following:

THE NEW HAMPSHIRE ONLINE POKER ACT OF 2008

WHEREAS, many citizens of the state of New Hampshire enjoy the ability to play the great American game of skill called Poker for money on the internet, and

WHEREAS, these same citizens would enjoy this pastime even more if its legal status were definitively clarified, and

WHEREAS, there exists the possibility that without legal framework a certain percentage of citizens may show addictive behavior towards the playing of poker, and

WHEREAS, it is in the interest of the state to insure that adequate safeguards are in place to protect the money of its citizens engaged in such games, and to insure that underage citizens are not involved in such games, and to identify and help any citizen who develops problems associated with addiction to such games,

BE IT ENACTED THAT

1) NH Gambling law be amended by adding the following provision:
"The playing of the game of poker on the internet or any similar communication medium by any person within the borders of New Hampshire shall be deemed lawful and not a violation of any law provided that the player is over the age of 21, and the player uses a method of money transfer for the playing of the game that is licensed by the NH Lottery Commission."
"Any person found to be using the internet to play poker for money without using a licensed money transfer service shall be guilty of a violation and may be fined not more than $500 for each transfer in violation of this law."

2) The NH Lottery Commission shall create a new executive position to monitor compliance with the above law, and to approve licenses for Financial Services providers to act as the money transfer agent for internet poker playing. This executive shall be responsible for approving all applications for a license under this section and shall devise a set of criteria for the issuance of any such license that will include the following:
a) Assurance that all users of the service are above the age of 21,
b) Assurance that adequate methods exist to identify and offer treatment to individuals identified as suffering from "gambling addiction,"
c) Assurance that the funds of NH citizens are at all times protected, both while in the hands of the FS provider, and by transferring said money only to reputable sites that offer poker games,
d) Assurance that methods exist to identify and report and activity that may be deemed money-laundering or otherwise unlawful, and
c) Assurance that proper reporting of all transactions shall occur.

3) Any company issued a license pursuant to this act shall be responsible for payment to the state of 1% of the gross total of money transferred out of the state on a schedule to be determined by the Lottery Commission.

Feel free to use this if you want, and again, all comments are appreciated.

Skallagrim

[TheEngineer]

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I come up with a new thought recently and am wondering what you folks would think.

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I'll leave interpretation of the law to you and the other lawyers here. From my layman's perspective, it sounds good. Hopefully we can find many loopholes along the way.