Legal Question in Business Law in New Jersey
Legality regarding business idea?
Over the past 2 years I have developed and successfully executed a strategy to win at the game of Roulette. Before you jump to conclusions and assume I have some sort of gambling problem please hear me out. I'm a math nut, always have been. The idea of gambling never appealed to me, but when I saw an opportunity to capitalize I figured why not. For just over a year and a half I have taken 2 trips a month to various casinos (AC, Mohegan, etc.) to put my system to the test and has provided a great source of supplemental income being that it has been smooth sailing from the get-go. I'm an equity trader by profession so I have tremendous discipline by nature and understand the importance of sticking to the plan. On to my business idea...
Often used in poker, the term "staking" involves a person/investor fronting money for a player to enter a table or tournament in return for a cut of the winnings. A contract is usually drawn up and lists the terms and conditions. Usually it's a 50/50 split on all profits. Now I tried googling the legality of staking in poker and couldn't find a credible source of information. In short, I would like to do the same with Roulette. I would only take on a few clients (friends & family) and requires a minimal investment which I would agree to pay back if the said system was to ever fail. I'm not looking to be greedy and make loads of money; simply a legitimate, private, small business (if legal). No online gambling would be used, strictly legal casinos such as Atlantic City.
SUMMARY:
-Is it possible to legally launch a business in which you handle a clients $ in a casino where the client receives a % of the winnings?
-If not, which law does it violate? Are there any possible loopholes?
-If it would be legal, which formation would be best? LLC?
1 Answer from Attorneys
In general, gambling is regulated by the federal government, each state individually and the casinos themselves. As you can imagine, the set of rules that govern your proposed gambling scheme are quite complex.
In NJ, for example, gambling statutes specifically exclude a bookmaker, which is defined as unlawfully accepting bets as a business, from the legal definition of a player. As a result, a bookmaker cannot gamble. At the same time family members and friends have been known to pull their money together or nominate one another to play on behalf of the other. So, as you can see, here are two conflicting examples that relate to your query.
Therefore, your questions require a careful analysis of the relevant laws in each jurisdiction in the context of your proprietary method of play. In addition, it would also be necessary to review the legality of any contract between individuals that would want to band together for such a purpose as such a contract may be invalid from the onset as a matter of law.
As such, unfortunately, the questions cannot be meaningfully answered in this forum. I suggest that you approach this as you would likely approach any business proposition that needs clarification and invest in an opinion letter from an attorney.
Feel free to contact my office at your convenience if you have any additional questions.
Roman R. Fichman, Esq.
www.TheLegalist.com │ @TheLegalist
email: Info (@) TheLegalist (dot) com
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