I want to start a gambling website. Is it legal? What is considered Gambling?

Minneapolis, MN Viewed 52 times. Posted 29 days ago in Business

So, for example if I have 10 people and they all pick a tempurture on a certain day for a certain dollar amount (lets say $5) and person who is closer to the correct temputure stated by a certain (Consistant) weather station wins all entry fee's minus a small fee for me. Do I need a gambling licence? If I did not get a small fee would it be differant? Does this need to be ran out of country? This is just an example but on the same page. Thanks

Answers (2)

Todd Francis Mctavish

This attorney is licensed in New York and 1 other state. Posted 27 days ago.

Generally speaking, probably not. The Unlawful Internet Gambling Enforcement Act of 2006 generally prohibits accepting cash for taking bets or wagers. If you're interested in reading more about this topic, Nelson Rose is a nationally recognized expert and publishes many articles for free on the internet.

Kaiser Wahab

This attorney is licensed in Connecticut and 1 other state. Posted 24 days ago.

What you describe is generally referred under many states' laws as a "game of chance," which is usually forbidden to those without a license. Moreover, gambling of any kind (internet or otherwise) is highly regulated on a state by state basis. That is why you will notice that most internet gambling operations allegedly operate out of off shore entities (e.g., Antigua). That is because to do so in the US might expose the principals to liability under each state's laws in which the site is accessible. Online gambling is also problematic considering the US courts' and government's use of the federal Federal Wire Act to punish online gambling operations, though such approach is being contested in the WTO.

Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.