Articles & Notes on Gambling Laws

Click on the blue titles in the table below to read various gambling law articles

by Chuck Humphrey

Internet Gambling Licensing Bill

A first look at Barney Frank's recently introduced Internet Gambling Regulation, Consumer Protections, and Enforcement Act, which proposes to legalize, license and regulate online casinos and poker rooms.

Some Specific Points on the New UIGEA

A first look at a few of the provisions of this controversial ban on funding betting accounts for players on online sportsbooks, casinos and cardrooms.

North Dakota Internet Poker Licensing Bill

Discusses and analyzes the coverage and some problems with the pending Internet Poker Licensing bill proposed in North Dakota and passed by its House of Representative.

Bar Poker Leagues in Texas

Analyzes the legality of bar or amateur poker leagues under the Texas anti-gambling laws. Variants involving Texas Hold'em tournament with and without the payment of consideration to play are discussed.

Who is Hypo Online Gambling.com?

Sets out the facts about a fictional online gambling website. This fictional site is used as the basis for analysis in some of the articles on this website, and others are encouraged to base analyses of legal questions about online gambling on these "facts."

California: Lotteries versus Gambling

There is an abiding misconception in the gambling community about the legal history of games like poker in the State of California. It is incorrectly assumed that poker is permitted because it is a game of skill, as opposed to a game of chance. The view that California courts have so held is widely held, but wrong.

Fantasy Sports Leagues Legal Challenge

Discusses the now dismissed lawsuit that unsuccessfully challenged the pay-to-play online fantasy sports leagues operated by ESPN, CBS Sportsline and Sporting News.  Full text of the Complaint, the Reply Brief on the defendants' motions to dismiss and the Ruling dismissing the action are also made available.

Online Gambling Arrest History - Carruthers - Dicks

In view of the recent rash of arrests of online gambling operators, here is an article identifying similar criminal actions over the past ten years. There are more of these prior cases than you might imagine.

Full text on testimony on April 5, 2006 on behalf of the Department of Justice commenting on its positions on Representative Goodlatte's bill that tries to ban most forms of Internet gambling

DOJ Testimony on H.R. 4777

Full text on testimony on April 5, 2006 on behalf of the Department of Justice commenting on its positions on Representative Goodlatte's bill that tries to ban most forms of Internet gambling

Wire Act Violation: Internet v. Telephone

Highlights the underlying rationale in United States v. Cohen as to the means of triggering a violation of the Wire Act. Concludes that the decision did not turn on the use of telephone communications versus contacts made over the Internet.

Player Protection Proposal

A collaboration between Bob Ciaffone, noted author of poker books, articles and rules, and Chuck Humphrey setting forth a proposed statute (and related rationale) to be adopted by state legislatures to protect mere players in recreational games of mixed skill and chance from prosecution.

Advertising Online Casinos

Discussion of recent developments in the legality of advertising online casinos, Internet poker cardrooms and other web-based gambling activities.

Online Gaming Licensing Reality

Online casino websites contend they are legal because they have gotten a license in one or more jurisdictions. The online casinos thus contend that they are legal gaming enterprises, not illegal gambling operations. What is the reality of licensing online casinos?

Advertisements Can Violate the Travel Act

Discusses how accepting advertisements for online casinos and cardrooms tied to an arrangement to share in revenues from those online sites may serve as the basis for a violation of the federal Travel Act.

Click-Wrap Agreements

Analysis of enforceability of click-wrap agreements in the context of a dispute between a player and an online cardroom over terms of using a prize the player won.

Online Gambling in Australia

The IGA targets the providers of interactive gambling services, not their potential or actual customers. The IGA makes it an offence to provide an interactive gambling service to a customer physically present in Australia.

W-2Gs: Requirements Before & After Mar. 4, 2008

I have an interest in the legal requirements as to when a W-2G is required to be issued in poker tournaments. An article appearing in Poker Digest and the general attitude in the industry is based on misinformation -- The Big Lie. The purpose of this article is to provide information on which an appropriate decision can be made as to whether to issue W-2Gs in poker tournaments. The recent issuance of Rev. Proc 2007-57, to take effect Mar 4, 2008, changes the previous requirements.

Tax Aspects of Online Gambling

By Russ Fox, a thorough analysis of the tax aspects online gambling.  Russ debunks the several arguments people present for not reporting online gambling. He also discusses the future prospects for the IRS reaching the conclusion that poker tournaments are "wagering pools."   See, however, new Rev. Proc 2007-57, which changes the requirements effective Mar. 4, 2008.

Full Text of Revenue Procedure 2007-57

Here is the full text of Rev. Proc 2007-57, requiring withholding of income tax at a 25% rate from net tournament winnings of $5,000 or more starting March 4, 2008.

Good Questions; Bad Answers

By Russ Fox, Replying to The Mailbag is Overflowing, a March 2004 article in Card Player magazine, by columnists Yolanda Smulik-Roche, E.A., and Roger C. Roche, E.A concerning the answers to questions about federal tax law about gambling income. Russ sets forth the substance of four of the questions, the gist of the answers provided by the columnists and replies showing why he believes the answers were wrong or misleading.

What Is a Gambling Session

By Russ Fox, An analysis of the IRS requirements for reporting gambling wins and losses on your tax return. The article discusses the IRS record-keeping requirements and some logical ways to determine what constitutes a gambling "session" for purposes of complying with those requirements.

Model Anti-Gambling Act

The Act was adopted by only a few states. However, it contains the comments that are instructive in understanding and interpreting the meaning of some state statutory provisions. The drafters adopted a three-pronged approach to defining and criminalizing gambling. Those who conducted gambling activities for profit were treated most harshly. Those who played in the illegal, for profit games were also treated somewhat harshly. The activities of mere social gamblers were not criminalized.

Skill vs. Chance

A white paper defending the proposition that poker is a game of skill, not a game of chance. This paper was prepared by Thomas Goldstein and his associates at the Aikin, Gump Strauss Hower and Feld law firm for the Poker Players Alliance, the leading organization representing the interests of poker players in the U.S. and around the world