Gambling Internet Sports Books
March 16, 2006
In the last several years, dozens of Internet sports
books have sprung into existence. Many are located
offshore, in Central American countries or on Caribbean
island nations where their bookmaking activities are not
illegal. Notably, however, these sports books are
frequently run by Americans and direct their activities
to bettors in America interested in gambling on American
sporting events such as baseball, football, and
basketball. Typically, the books accept bets only in
U.S. currency, and further require that all wagering be
done from pre-funded betting "accounts." Toward this
end, their websites provide instructions to bettors on
how to wire transfer money to the sports books. Many
advertise in U.S. magazines especially devoted to sports
fans, in college newspapers, or on websites devoted to
gambling generally or sports betting in particular.
Sports books
Indeed, some sports books' advertisements have
represented that their operations are legal, and have
sought to reassure bettors that they can be trusted
because they hold licenses from, and are regulated by,
their host countries. While some
sports books operate
entirely through Internet transmissions, others publish
toll-free telephone numbers on their websites or in
advertisements so that bettors can, if they choose, call
and place wagers with a live operator. Notably, although
many Internet sports books purport to accept wagers only
from persons having the legal capacity to gamble, the
fact that most permit betting to be done anonymously or
through pseudonyms precludes meaningful control of
gambling by minors, much less by persons who are
intoxicated, or by persons with gambling addictions.
Conclusion
A
number of sports book operators have argued that they
are immune because their conduct occurs entirely
offshore. Arguing that their offices and employees as
well as the computer servers that host their websites
and record the bets are all physically located in other
countries, defendants have claimed that when Americans
access their websites, they make a "virtual visit" to
the foreign country. Since sports betting is legal
there, the argument continues, the Internet sports book
is no more illegal than a casino in Nevada which caters
to traditional visitors. Indeed, the sports books have
argued, their operations are not subject to the
regulation of any state or nation because everything
occurs in cyberspace.
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