What is the National Physical Activity Guidelines?

Guidelines for Defining an Online Activity as Gambling

• What are the legal guidelines that define a game or activity as gambling? We have created an online game in which people can buy and compete for "credits". We would like to host our site in the US instead of offshore. When does a game become gambling related?

• Answer:

  Hi tssbish: Every state has different rules with regards to what legally constitutes "gambling". However, most follow the basic tenet of: "The classic legal definition of gambling is any activity that involves three things: consideration (i.e., a cash bet), chance, and a prize." From: http://www.chron.com/cgi-bin/auth/story/content/chronicle/ae/books/9899/11/15/badbetch1.html From what you've mentioned of your idea, you definitely have the first (bets) and third (a prize) elements. Is there *any* element of chance in your online game? If so, I'm afraid that you fall under the definition of gambling and will likely have to operate offshore. The whole idea of trying to avoid the last element (a prize) by issuing "credits" has been tried before and most states have closed that loophole quite effectively. For more information on this see: Video Gambling Devices URL: http://www2.tltc.ttu.edu/Cochran/Gaming%20Law/rychlakvideo.htm Quote: "In one early attempt to avoid the reach of gambling statutes, machines were modified so as to dispense tokens, rather than cash to a successful player.24 The tokens could then be exchanged for cash. Such machines, however, were soon outlawed in most states. Another early tactic was to dispense a small mint candy or piece of chewing gum each time the gambling machine was played. Use of the candy, it was argued, effectively converted a slot machine into a legitimate vending machine because the player received some consideration for each coin.26 Other variations included machines that paid off in cigars, golf balls, and, during World War II, ration tokens." The following website gives some very good information about the legal implications of online gambling in the U.S. in general: Internet/Online Gambling Questions URL: http://www.wsgc.wa.gov/FAQ/InternetGamblingFAQ.htm Quotes: "Is online gambling legal in Washington State? No. State law prohibits the transmission or receipt of any wager or gambling information intended to be used for bookmaking or other unauthorized gambling activity. It is also illegal under federal law, including the Federal Wire Wager Act (18 U.S.C. § 1084 (1994), to operate a betting or wagering business using telephone lines or other 'wire communication facility.' Federal prosecutors have successfully prosecuted United States citizens with businesses based offshore under the Wire Wager Act." "If online gambling is illegal in the United States and Washington State, then why do I see them all over the Internet? It is not illegal to operate an online or Internet gambling website in countries which permit it and when the people placing those bets are in those countries; it is illegal, however, to solicit bettors from the United States, under the federal Wire Wager Act. Also, people in Washington State who place bets on the Internet can be charged with Professional Gambling in the Third Degree, which is a gross misdemeanor." "Has anyone ever been prosecuted for online gambling? Yes. Jay Cohen was convicted in February 2000 for violating the Wire Wager Act in connection with his operation of World Sports Exchange (WSE). Mr. Cohen was sentenced to 21 months in prison and fined $5,000." I hope this information has been of help to you. If you need any clarification of the information I have provided, please ask using the Clarification feature and provide me with additional details as to what you are looking for. As well, please allow me to provide you with clarification(s) *before* you rate this answer. Thank you. websearcher-ga Search Strategy: "legal definition of gambling" chance OR luck ://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&safe=off&q=%22legal+definition+of+gambling%22+chance+OR+luck online gambling illegal united states ://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&safe=off&q=online+gambling+illegal+united+states