Free Sports Gambling Website - Illegal? (in US)

[dkr]

Hi,

I own a website service that allow users to bet on certain sports events with 'points'. These points are given upon registration, and can not be purchased with real cash. Would this service, which is hosted in the US, be illegal? Points can later be redeemed for prizes of cash value.

Thank you,
Donny

PS, if I had an option to let users purchases these points to bet with, would that make it illegal? (assuming it wasn't illegal if not).

 

[flamewalker]

Im not real clear on the whole gambling issue, but non-cash value 'points' SHOULD be ok... selling the points on the other hand... I wouldn't recommend it, especially if the only thing you can use them for is the bet. If you made it like namepros and betting was just a small part, it might help your case, but it might not.

If you earn points by posting and whatnot, I personally don't see how this would be gambling in the law sense as there is no cash transactions going on.

Afterall, this is essentially what the fantasy sports leagues are doing, or some variation of it.

Just IMO, not a lawyer yada yada - normal 'im not liable stuff' goes here .

 

[America First]

We do it now and have been for a little over 1 year. We don`t sell them you earn them for post, you can however bet them on sporting events we set through VBookie.
It would be against the US laws to sell them and then let them bet with them to make money or prizes, we offer redemption for the points for collectibles.

Good luck!

 

[Timewarp]

Im not sure of the details but I heard one of the ways gambling sites are sneaking around the rules was selling people phone cards which they somehow bet with and can be paid through.

 

[dkr]

ah ok. Thanks for the replies.