A question on the legality

[Sinister_Kane]

I am unsure if anyone can give me a clear answer here, but I will take a shot anyways.

I want us to ASSUME a few things (For the sake of risks involved)

Assuming Poker is illegal in the USA (More the HOUSE than the player)

Being an affiliate to such sites as Full Tilt Poker \ Ultimate Bet etc, would MOST LIKELY be Illegal (I believe this would fall under aiding and abetting)

This leads me to my question, all things being equal, me being from the USA, would it be 100% LEGAL for me to become an affiliate and get paid by such sites as Party Poker \ Noble poker, sites that DO NOT allow US Players?

Thanks in advance

[MiltonFriedman]

"Assuming Poker is illegal in the USA ... "

It's not, but go ahead ...

"Being an affiliate to such sites as Full Tilt Poker \ Ultimate Bet etc, would MOST LIKELY be Illegal "

It's not, see above, ... but continue ....

"would it be 100% LEGAL for me to become an affiliate and get paid by such sites as Party Poker \ Noble poker, sites that DO NOT allow US Players?"

A very good question ..... The answer is "Yes". For example, a US company like World Poker Tour Entertainment, actually owns/operates a subsidiary site which allows non-US players and WPTE does NOT have any special license from anyone in the US to do so.

This post does NOT constitute legal advice and may not be relied upon as such by any reader.

[oldbookguy]

Adding to the WPTE is AOL entering Sports Betting in the E.U. and YAHOO! entering Poker as well.

These three examples are good for us to remember in our letters as well, the US is invading the foreign markets and the same is being barred from our domestic market. This only ADDS to the Trade Sanctions claims filed and being negotiated.

obg

[Sinister_Kane]

[ QUOTE ]

A very good question ..... The answer is "Yes". For example, a US company like World Poker Tour Entertainment, actually owns/operates a subsidiary site which allows non-US players and WPTE does NOT have any special license from anyone in the US to do so.


[/ QUOTE ]

Milton- Thanks for the answers, your responses help me breath easier more than you know. Long time reader and I look forward to reading your postings. While I agree with you that poker is 100% legal, my situation is risk vs reward. I have a career job, family, etc.. I don't know if it's worth the risk (Even though we both feel it's legal) how can one know for sure?

Here's the LAST question:

Again, we are assuming online poker is illegal. Is it LEGAL for me to get paid by an affiliate site who ALSO offers rakeback to such sites at Full Tilt, Absolute etc. I basically would only be promoting \ handling non-us customers?

If you could Milton, is there someone I COULD hire for legal advise? I have talked to I Nelson Rose a bit, he says it's very murky at best.

Again, thank you

[MiltonFriedman]

I like Nelson, he is a nice guy. He is basically correct that you cannot know "for sure", but I do not think it is very murky.

You hypothetically could set up an offshore entity for contracting with the site(s). Get paid offshore as well, but report your income for US/State personal income taxes. Again, think WPT.

(Privately held poker operators set up offshore, not because they necessarily think the US-facing poker operation is illegal, but because they do not want to be the test case.)

Under the facts you described, you should be okay, but a zealous Assistant US Attorney somewhere could see it differently. However, though your original hypothetical circumstances should never come to anyone's attention in the US, the last scenario could bring your activites under more likely scrutiny than the original hypo.

You could try a lawyer named Tony Cabot in Las Vegas at Lewis & Roca or Chuck Humphries in Denver (?). I do not know what they would tell you.

[MiltonFriedman]

Good examples. Add to that Paypal taking gaming business overseas, after paying off the threat to get prosecuted in the US for handling gaming business. (The USDA announcing the Neteller arrests even alluded to Paypal having paid off the US.)

[oldbookguy]

great example, I had forgotten payPal.

As a note: they STILL fund wagering in the U.S. at 'skill' sites via AOl, MSN, YAHOO! and world winner.

obg