|  Online Gambling Law
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Online Gambling Law
Contrary to the understanding of many casino online gamblers, the majority of countries have made it illegal to operate any type of gambling businesses outside of that actually sponsored by the state including certain legalized operations such as lotteries, horse racing, or riverboat gaming, that vary country by country. For example, the law states that "a person commits an offense who knowingly engages in gambling." Gambling is defined as "risking anything of value for a profit whose return is to any degree contingent on chance," not including a lawful business transaction. The phrase "for a profit" emphasizes that only gambling conducted, as a business will be prosecuted in certain countries and states
Many of the statutes are quite comprehensive. For instance, Massachusetts provides for the following: Whoever knowingly organizes, supervises, manages or finances at least four persons so that such persons may provide facilities or services or assist in the provision of facilities or services for the conduct of illegal lotteries, or for the illegal registration of bets or the illegal buying or selling of pools upon the result of a trial or contest of skill, speed or endurance of man, beast, bird or machine, or upon the happening of any event, or upon the result of a game, competition, political nomination, appointment or election, or whoever knowingly receives from at least four such persons compensation or payment in any form as a return from such lotteries, such registration or such buying or selling shall be punished by imprisonment in the state prison for not more than fifteen years or by a fine of not more than ten thousand dollars, or by both such fine and imprisonment.
More recently, many businesses have become the subject of litigation by states.
On July 18, 1995, the first state action was filed against an Internet gambling operator for its promotion of a gambling operation. Minnesota attorney general, Hubert H. Humphrey, III, filed an action against Granite Gate Resorts, Inc. of Nevada and its president, Kerry Rogers, operators of WagerNet alleging that WagerNet's representation that its service was legal constituted a deceptive trade practice, false advertising, and consumer fraud under Minnesota law. The state sought an injunction, a declaratory judgment, and damages. A memo published by the attorney general's office sets out the jurisdictional basis for prosecuting WagerNet and other entities like it. Minnesota's general criminal jurisdiction statute, section 609.025, provides that a person may be convicted and sentenced if the person "being without the state, intentionally causes a result within the state prohibited by the criminal laws of this state." This has been interpreted by the court to find that an Indian tribe who placed a political advertisement in a newspaper circulated in the state had to register under state ethical practices laws, because "what they did caused something to occur beyond the reservation boundaries, namely, the dissemination of a political message, which is the activity sought to be regulated." The memo concludes from this that "individuals and organizations outside of Minnesota who disseminate information in Minnesota via the Internet and thereby cause a result to occur in Minnesota are subject to state criminal and civil laws." As a result, many businesses may be prosecuted by a state under a similar theory even though the company may not be located in that state.
Once again, the laws vary on a state-by-state basis and can be quite complicated. Consulting an attorney prior to the operation of any gambling oriented site is highly recommended.
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