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Dwayne B.
Dwayne B., Attorney
Category: Business Law
Satisfied Customers: 32354
Experience:  Practicing for over 20 years and helped a number of businesses with litigation.
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Looking to start a sports website that runs office pools for

Resolved Question:

Looking to start a sports website that runs office pools for people but also runs a "suicide, king of the mountain" type pool that pays out the winner a lump sum. We wouldn't be taking any bets but is this considered a type of betting website?
Submitted: 7 years ago.
Category: Business Law
Expert:  Dwayne B. replied 7 years ago.
In my opinion it is, and rtsports.com is as well. The problem you have is that it may be legal in some states and not others so unless you are going to only allow certain states to join and play, it would be a better idea for it to be a foreign corporation and website.

Thank you for allowing me to assist you. I believe I have answered all of the questions you asked so I would request that you please click the ACCEPT button so I receive credit for my work and leave feedback if you have a chance. Please consider clicking "BONUS" as a nice way of saying "thanks" for a job well done, although this is neither required nor expected. Please remember that we can only base our answers on the information you provide and sometimes a misunderstanding as to what you are looking for or already know occurs so feel free to ask additional questions. Please be aware that my answer is not legal advice, it is merely information and no attorney client relationship has been formed. You should always contact a local attorney for legal advice.

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Customer: replied 7 years ago.
You say in your opinion it is, can you be a little more specific? What is your opinion based on? I was told by a colleague that sites like RTsports are allowed to pay out because it is a "skill" they are rewarding and they are not simply paying you out for putting 20 bucks down on Tampa.
Expert:  Dwayne B. replied 7 years ago.
The problem is that the website is taking money and paying it out for a fee to a winner.

I am not sure that sports handicapping has ever been ruled to be a skill, but I do know that in federal courts poker playing has been ruled to be a skill and yet it is illegal to play online poker for money in the U.S.

In addition, the owners of several websites, including Bodog, have received federal indictments for running their websites and allowing people in the U.S. to bet on sports on the websites.

There may be a way around it, but not simply running it as a pay to play website. I haven't looked into rtsports.com in depth, and they may have a loophole they are working under, but just as a general rule what you are proposing is not legal at this time.

Thank you for allowing me to assist you. I believe I have answered all of the questions you asked so I would request that you please click the ACCEPT button so I receive credit for my work and leave feedback if you have a chance. Please consider clicking "BONUS" as a nice way of saying "thanks" for a job well done, although this is neither required nor expected. Please remember that we can only base our answers on the information you provide and sometimes a misunderstanding as to what you are looking for or already know occurs so feel free to ask additional questions. Please be aware that my answer is not legal advice, it is merely information and no attorney client relationship has been formed. You should always contact a local attorney for legal advice.

Several customers have asked how they direct a question to me in particular. If you specifically want me to provide information for you just put “FOR TEXAS ATTY” in the subject line and I will pick up the next time I am online.


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