The Truth Behind Offshore Betting And The Law

Kramer · #1 08-17-2006, 08:33 PM

When one considers betting sports with an offshore sportsbook , its not uncommon for that person to wonder whether they are breaking
a local , state , or federal law .

Is it legal to bet offshore ?
Well that depends which lawyer you listen to .

Until recently , the regulation of gambling in the U.S. was left entirely to the
states .
But since the inception of offshore of ONLINE GAMBLING 11 YEARS AGO , IT HAS INCREASED CONFUSION ABOUT JUSRISDICTION .

After all , who runs the laws in cyberspace ? Most current laws meant to apply to gambling in general were created long before the internet even existed .

And thus the application of those laws to offshoe gambling is open to broad interpretation .

The U.S. governament still has the stance that betting within the U.S.
borders with an offshore book is illegal under the 1961 Wire Act .
Well the problem here is that it is very vague and was created 45 years ago way before the internet was even born .

In a nutshell the wire act prohibits the use of wire transactions to foster any gambling persuit .

What this really means is is still open for debate .

Some lawyers have argued that this act means is that any interstate use of
the internet or telephone related to placing or receiving of bets is illegal .

However other lawyers beleive that this cannot be applied to the internet betting due to the extensive use of the wireless internet services
and also due to some vagueness in the language .
The act may only apply to sportsbetting AND NOT OTHER TYPES OF BETTING .

The bottom line is the specific language of the act says it only applies to
those participating in the business of betting or wagering .

That limits its impact to sportbooks or casinos , not individuals.

So the belief of many is this . Last year worldwide gambling revenue was over 10 BILLION dollars for offshore sportsbooks .
The U.S. government beleives a majority of this wagering was done within the borders of the United States .
No tax dollars were paid and they want their cut of the revenue .

They've taken the stance they own the internet , own cyberspace
and are quickly learning that they don't .

Also , U.S. firms such as Goldman Sach's , Merrill Lynch and Fidelity Investments are risking the vagueness of the law in order to make investments on behalf of the American clients
by investing in stocks and mutual funds involving offshore companies .

So can an American person legally bet sports with an offshore sportsbook ?

All we can say is no American citizen has ever been arrested for betting on the internet .
But it could change .

As of now its business as usual until the internet gambling prohibition act
if / ever does get passed which attempts to hamper on line gamling on three fronts :

by criminilizing what had previously been gray areas
by restricting advertising of on line betting venues
and by prohibiting American financial institutions from facilitating transfers of funds
from gambling .

Until then,
Enjoy ...