Please explain this

[PrayingMantis]

Can someone please explain this:

Why wasn't there any online poker site that was based in the USA, if it is just now becoming illegal to accept bets from Americans? Why were all the online poker/casino sites that were/are taking action from Americans were/are doing it from offshore?

(I am familiar with the wire act. However, I don't quite see how the new situation is different from how it was before, if online sites were acting against a federal law to begin with.)

[PrayingMantis]

Bump. I was asked about this by a non-American lawyer and could not come up with a reasonable answer. If it is a stupid/uninteresting question then I apologize.

[benfranklin]

[ QUOTE ]
Bump. I was asked about this by a non-American lawyer and could not come up with a reasonable answer. If it is a stupid/uninteresting question then I apologize.

[/ QUOTE ]

I am beginning to think that this an issue that everyone just assumed about and never questioned.

As far as I know, the Federal government generally leaves the actual operation of gambling businesses to the states. The exception is gambling on tribal land.

The most notable fed gambling law is the Wire Act. This law says nothing about the legality or illegality of gambling. It forbids the interstate transmission of sports betting information. Other federal gambling laws (The Travel Act, The Organized Crime Control Act, The Illegal Gambling Business Act, etc) all deal with interstate aspects of violations of state and local laws.

If that is the case, then the issue falls back on the states. Every state has laws about gambling, stating what is allowed and what is not. The general rule is that the states say what is allowed, and anything else is prohibited. As far as I know, no state specifically allows the operation of an internet gambling site. That doesn't mean that a resident of that state can't gamble online, but does mean that a resident cannot operate an online gambling site.

Assuming that my unlicensed legal analysis is correct, the answer is that you can't operate an online casino in the US because you can't operate one in any state.

If in fact it were legal to operate an online casino in any state, it has been assumed that interstate access to it would be illegal under the Wire Act. As that Act gets more and more attention, it is increasingly doubtful that it does in fact apply to anything other than sports betting.

[raise4value]

why does my antivirus program alerts spyware when i open this topic????

[ichthyologist]

I think it's just that the legal climate was uncertain, with many different laws in different states and differing interpretations of federal laws. Better to base yourself overseas and minimize your risks, then.

[Gregg777]

[ QUOTE ]
Can someone please explain this:

Why wasn't there any online poker site that was based in the USA, if it is just now becoming illegal to accept bets from Americans? Why were all the online poker/casino sites that were/are taking action from Americans were/are doing it from offshore?

(I am familiar with the wire act. However, I don't quite see how the new situation is different from how it was before, if online sites were acting against a federal law to begin with.)

[/ QUOTE ]

There were, a couple of the large casinos had them, but were forced to pull them.

If they are ever allowed in the market, they already have the software and websites...

[Phil153]

What everyone else said, plus tax issues. I understand places like Costa Rica and the Isle of Man (i.e. Pokerstars) offer low or nill tax rates, as well as all sorts of incentives to set up shop.

[RacersEdge]

I think the answer is risk. With the Wire Act and state laws as mentioned here - there was too much uncertainty for future operations in the US. Too many gray areas. So why not just pack up and find a place in Antigua like the guys from WSEX did.