Gambling license USA

Gambling license USA

We summarize the most important online gambling laws pertaining to gambling operators and users of gaming services in the countries where online gambling is legal to some degree or other.

Gambling license USA

The USA is a very lucrative market for online gambling companies, although there are many legal risks involved. Since 24% of all online gamblers in the world reside in North America, and the majority of gambling companies doing their hosting in Curacao (where we have our operations – to find out more Click here), we go into detail about the legal situation in this country.

The individual States in the USA have the power to make laws pertaining to their state only, but on the other hand there are Federal Laws that is applicable to the whole country, while protecting State rights. This makes the online gambling legal situation in the country very complex.

We start by giving an overview of the main Federal laws that address the legality of online betting, wagering and gambling in the USA, and then we will have a look at the situation in the individual States.

USA Federal gambling laws:

1. The Interstate Wire Act of 1961 (commonly referred to as the Federal Wire Act).
This law addresses only the issue of online sports betting and wagering and does not address the legality of online gambling as such.

Here is paragraph (a) from that law:
“Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.”

Source: http://www.law.cornell.edu/uscode/text/18/1084

2. Illegal Gambling Business Act of 1970

The Illegal Gambling Business Act was enacted as part of the Organized Crime Control Act of 1970. This Act was designed to be a companion to other laws, such as the Federal Wire Act, in targeting a source of income for organized crime. Unlike the Federal Wire Act, the Illegal Gambling Business Act is designed to assist states in enforcing their laws with regard to interstate gambling activities and is dependent on a predicate state offense.

Here are some extracts from that law:

18 U.S.C. 1955 the Statute
Prohibition of illegal gambling businesses
(a) Whoever conducts, finances, manages, supervises, directs, or owns all or part of an illegal gambling business shall be fined under this title or imprisoned not more than five years, or both.

(b) As used in this section-
(1) “illegal gambling business” means a gambling business which-
(i) is a violation of the law of a State or political subdivision in which it is conducted;
(ii) involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business; and
(iii) has been or remains in substantially continuous operation for a period in excess of thirty days or has a gross revenue of $2,000 in any single day.

And:

(e) This section shall not apply to any bingo game, lottery, or similar game of chance conducted by an organization exempt from tax under paragraph (3) of subsection (c) of section 501 of the Internal Revenue Code of 1986, as amended, any private shareholder, member, or employee of such organization except as compensation for actual expenses incurred by him in the conduct of such activity.

3. Interstate Wagering Amendment of 1994

This Act relates mostly to lotteries:

“Whoever brings into the United States for the purpose of disposing of the same, or knowingly deposits with any express company or other common carrier for carriage, or carries in interstate or foreign commerce any paper, certificate, or instrument purporting to be or to represent a ticket, chance, share, or interest in or dependent upon the event of a lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, or any advertisement of, or list of prizes drawn or awarded by means of, any such lottery, gift enterprise, or similar scheme; or, being engaged in the business of procuring for a person in 1 State such a ticket, chance, share, or interest in a lottery, gift, enterprise or similar scheme conducted by another State (unless that business is permitted under an agreement between the States in question or appropriate authorities of those States), knowingly transmits in interstate or foreign commerce information to be used for the purpose of procuring such a ticket, chance, share, or interest; or knowingly takes or receives any such paper, certificate, instrument, advertisement, or list so brought, deposited, or transported, shall be fined under this title or imprisoned not more than two years, or both.”

4. Unlawful Internet Gambling and Enforcement Act of 2006 (UIGEA)

This is the major gambling law that has to be considered by any online gambling operator. It targets large online gambling operations, and does not criminalize the consumers who participate in online gambling.

The Act prohibits gambling businesses from knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the Internet and that is unlawful under any federal or state law (termed “restricted transactions” in the Act). The Act also requires Treasury and the Federal Reserve Board (in consultation with the U.S. Attorney General) to promulgate regulations requiring certain participants in payment systems that could be used for unlawful Internet gambling to have policies and procedures reasonably designed to identify and block or otherwise prevent or prohibit the processing of restricted transactions.

The Treasury and the Federal Reserve Board have issued a joint rule that designates five payment systems which are covered by the Act. These systems are:
(i) automated clearing house (ACH) systems,
(ii) card systems,
(iii) check collection systems,
(iv) money transmitting businesses, and
(v) wire transfer systems.

The Act starts with the following paragraphs:

“(a) Findings.- Congress finds the following:
(1) Internet gambling is primarily funded through personal use of payment system instruments, credit cards, and wire transfers.
(2) The National Gambling Impact Study Commission in 1999 recommended the passage of legislation to prohibit wire transfers to Internet gambling sites or the banks which represent such sites.
(3) Internet gambling is a growing cause of debt collection problems for insured depository institutions and the consumer credit industry.
(4) New mechanisms for enforcing gambling laws on the Internet are necessary because traditional law enforcement mechanisms are often inadequate for enforcing gambling prohibitions or regulations on the Internet, especially where such gambling crosses State or national borders.”

Notwithstanding section 5362 (2), a financial transaction provider, or any interactive computer service or telecommunications service, may be liable under this subchapter if such person has actual knowledge and control of bets and wagers, and-
(1) operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers may be placed, received, or otherwise made, or at which unlawful bets or wagers are offered to be placed, received, or otherwise made; or
(2) owns or controls, or is owned or controlled by, any person who operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers may be placed, received, or otherwise made, or at which unlawful bets or wagers are offered to be placed, received, or otherwise made.”

More information can be found at: http://en.wikipedia.org/wiki/Unlawful_Internet_Gambling_Enforcement_Act_of_2006

Because of these Federal gambling laws, online gambling companies are hosting their operations in off-shore countries that supply legal gambling licenses and also using off-shore money transfer services. But even doing that has its risks as can be seen from the recent arrests of the founders of companies like PokerStars, Full Tilt Poker, and Absolute Poker.

The United States judiciary system seems to target only the largest online gambling operators (many of them quoted on the Stock Exchanges), which leaves the market open for the smaller companies. Indeed, we see a spike in these smaller companies’ business turnover as gambling enthusiasts moved over to them after their main resources were cut off.

According to Department of Justice the companies allegedly tried to circumvent UIGEA rules with the help of others who acted as “payment processors” by helping to disguise gambling revenue as payments for non-existent goods such as jewelry or golf balls. A bank in Utah was charged as an accomplice.

State Laws:
There are no States at the moment that issue online gambling licenses.

The question if online gambling is legal in some States is a complex one, since many States do not have explicit laws on this question. Nevertheless, the following States have instituted specific laws that prohibit internet gambling that make it illegal for their citizens to participate in online gambling activities:

Illinois
Indiana
Louisiana
Montana
Nevada
Oregon
South Dakota
Washington
Wisconsin

That does not mean that States not on the list allow online gambling – there may just not be a specific current law dealing with that issue.

New Jersey seems to be the first State that is moving towards legalizing online gambling.

We are indebted to http://www.gambling-law-us.com for the following information on the different gambling laws of the individual States:

(Follow the links attached to each State to get the details of the specific legal situation)

For more information:
As gambling is regulated by state and territory, you can review the links under the “Gambling and Licencing” heading.

Get in touch:

I have years of experience with gambling hosting, casino games, Curacao gambling licensing and online casinos

FURTHER INFORMATION ON CURACAO GAMBLING LICENSES

We wrote an article on Curacao Gambling License which may be of interest to you should you be looking for alternative casino licensing information.

Gambling license belarus, how to license a casino in Belarus

Gambling license belarus

Republic of Belarus, is a landlocked country in Eastern Europe bordered by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Hrodna (Grodno), Homiel (Gomel), Mahilyow (Mogilev) and Vitsebsk (Vitebsk). Over 40% of its 207,600 square kilometres (80,200 sq mi) is forested. Its strongest economic sectors are service industries and manufacturing.

Corporate tax: 24%
Gambling tax: TBA%

Who manages E-Gambling in Belarus?

Gambling activities in Belarus are licensed by the Ministry of Sport and Tourism under the presidential decree on gambling issued on January 10, 2005.

Gambling license Belarus – Overview:

On January 6, 2012 a law went into effect making it illegal for the citizens of Belarus to access any foreign websites or any site not hosted on a .by domain. Businesses and individuals cannot provide services through domains not registered in Belarus and owners of Internet cafes or similar facilities can face charges if Internet access is not monitored and reported for violations of the law.

Users of Internet cafes are required to identify themselves, and records of their computer usage are kept for one year. The law goes as far as to monitor individuals with guests in their homes who may visit a foreign website while visiting – the owner is bound by law to report it or face charges. Internet Service Providers are required to register with the Ministry of Communications and Information. ISPs are to provide details of their network, systems, and information resources and disclose all devices connected to the network such as computers and mobile phones. The charges against individuals are a misdemeanor and they can be fined up to $125 USD. The Belarus tax authorities, police, and secret police will be responsible for investigating and prosecuting offenders of the new law.

Who to contact for a Belarus gambling license:

Address:
Ministry of Sports and Tourism
8 Kirov Street
Minsk
Belarus 220050
Website: www.mst.by
Fax: +375 22 776 22

Online casinos licensed in Belarus:

SuperLoto

For more information:
As gambling is regulated by state and territory, you can review the links under the “Gambling and Licencing” heading.

Get in touch:

I have years of experience with gambling hosting, casino games, Curacao gambling licensing and online casinos

FURTHER INFORMATION ON CURACAO GAMBLING LICENSES

We wrote an article on Curacao Gambling License which may be of interest to you should you be looking for alternative casino licensing information.

Gambling license Bosnia and Herzegovina

Gambling license Bosnia

Bosnia and Herzegovina, is a country in Southeastern Europe located on the Balkan Peninsula. Sarajevo is the capital[1] and largest city.[5] Bordered by Croatia to the north, west, and south; Serbia to the east; Montenegro to the southeast; and the Adriatic Sea to the south, with a coastline about 20 kilometres (12 miles) long surrounding the city of Neum.

Corporate tax: 10%
Gambling tax: TBA%

Who manages E-Gambling in Bosnia?

The “Republicka Uprava Za Igre Na Srecu” (RUIS), which is the gaming regulatory board under the Ministry of Finance at Republika Srpska (an entity of Bosnia and Herzegovina)

Bosnia Gambling License – Overview:

In January 2011, Republika Srpska granted the first Internet gaming license to WILLIAMS, a land-based bookmaker and slot hall operator. WILLIAMS’s online gaming site WWin (wwin.ba), offers sports betting and casino games to players throughout the region. Any player that is not registered or does not have an account in a bank within Republika Srpska will be banned.

To ensure winnings payout, organising games of chance fees, and other liabilities can be paid, an Internet games of chance organiser must have a dedicated deposit in the amount of 1.000.000 KM at the bank with a seat in Republika Srpska during the permission period or a banking guarantee in that amount. Consent for activating a banking guarantee for winnings payout is issued by the Board. If activated, the organizer is obliged to renew the banking guarantee within a maximum of 30 days.

Organisers must pay a fee in the amount of 4% of the basis, which consists of total stakes minus total winnings.

What does a Bosnia gambling license cost:

200.000 KM is paid for permission to organise Internet games of chance.

Licence Length:

TBA

Software Testing Requirements:

All equipment must be located in the territory of Republika Srpska, which refers to hardware and software used by players to participate in games of chance through the Global Internet Network (GIN); Internet games of chance organisers must ensure functional IT equipment which enables connection with the Board’s IT system for supervision and control of financial activities.

Regulator Contact Details:

Address:
The Ministry of Finance of the Federation of Bosnia and Herzegovina
Mehmed Spahe 5
Sarajevo
Bosnia and Herzegovina
Website: www.fmf.gov.ba
Email: info@fmf.gov.ba
General Information: +387 33 253 400

Online casinos licensed in Bosnia:

WWin
For more information:
As gambling is regulated by state and territory, you can review the links under the “Gambling and Licencing” heading.

Get in touch:

I have years of experience with gambling hosting, casino games, Curacao gambling licensing and online casinos

FURTHER INFORMATION ON CURACAO GAMBLING LICENSES

We wrote an article on Curacao Gambling License which may be of interest to you should you be looking for alternative casino licensing information.

Gambling license France

Gambling license France

The country is also renowned for its sophisticated cuisine and its wines. Lascaux’s ancient cave drawings, Lyon’s Roman theater and the immense Palace of Versailles are testaments to its long history.

Corporate tax: 33%
Gambling tax: Sports betting 8,5%, Poker 2%

Who manages E-Gambling in France?

Autorité de régulation des jeux en ligne (ARJEL)

Gambling license France – Overview:

France came under a lot of pressure from the EC to adjust their online gambling restrictions, which forced them to amend and legalize onine gambling in a bid to better regulate it.

Even though the new law opened up France’s online gaming market to foreign operators, it came with restrictions. Only limited types of online gaming would be available to the operators, and the established French operators were to get preferential treatment.

French players are cut off from the international poker scene, which means when you play on a licensed French poker site, you only play with people who are located in France. This has caused liquidity problems for licensed sites as they find it difficult to keep the games running with a limited player pool.

Security Requirements / Indemnity for Player Deposits:
All licensees must adopt an IT system known as “Frontal.” All customers’ data and information runs through here and is stored in an access-safe box that only ARJEL can access.

French Gambling Licence Cost:

One type of license with the annual fee based on the amount of licenses issued.
€20,000 for one license
€30,000 for two
€40,000 for three.

Gambling Licence Length:

5 years

Reporting Requirements to Regulators:

All licensees are required to submit a certification issued by a third party, accredited by ARJEL, once a year.

Anti-Money Laundering Policy:

All operators must comply with AML legislation in force.

Country Restrictions:

Players must have the option to self-exclude from play and to limit how much they can gamble, and links to problem-gambling resources must be displayed on the site in a prominent position.

Contact Details:

Address:
Autorité de Régulation des Jeux En Ligne
99-101 rue Leblanc
Paris
France 75015

Website: www.arjel.fr
Email: contact@arjel.fe
General Information: +33 1 57 13 13 00

Online casinos licensed in France:

bwin France
2 Party Poker.fr
3 Winamax
4 ZEturf.fr

For more information:
As gambling is regulated by state and territory, you can review the links under the “Gambling and Licencing” heading.

Get in touch:

I have years of experience with gambling hosting, casino games, Curacao gambling licensing and online casinos

FURTHER INFORMATION ON CURACAO GAMBLING LICENSES

We wrote an article on Curacao Gambling License which may be of interest to you should you be looking for alternative casino licensing information.