Legal Question in Entertainment Law in New York
Online Sportsbooks
Is it against the law to make bets on online sportsbooks. If so how often are users of sportbooks prosecuted.
What is the typical penalty for using online sportsbooks.
2 Answers from Attorneys
Re: Online Sportsbooks
You raise an interesting question, which has yet to be fully resolved by the United States courts and local authorities. Each state has its own regime regarding bookmakers and their ilk. It is more likely than not that online bookmakers are engaging in activity that would be considered illegal in the United States; hence that is why they go offshore to jurisdictions that permit it, such as Antigua (probably the most popular jurisdiction).
As for the online bettor, many states would argue that engaging in online betting is illegal. However, few have attempted to prosecute these customers at this time, but there is no guaranty.
For a more detailed explanation, I suggest that you look up articles written by Professor Nelson Rose, a law professor in California who has written extensively on this matter.
Re: Online Sportsbooks
It is probably illegal to engage in on-line betting in jurisdictions where sports betting is illegal. It is certainly illegal to run a sports-betting site and collect bets in jurisdictions where sports betting is illegal. The nature of internet traffic makes it difficult to prosecute, and to date hasn't been a prime target of prosecutors.
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