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Q: Online Lottery ( Answered,   1 Comment )
Question  
Subject: Online Lottery
Category: Computers > Internet
Asked by: neoalec2k-ga
List Price: $10.00
Posted: 08 Dec 2002 14:49 PST
Expires: 07 Jan 2003 14:49 PST
Question ID: 121517
Are there any restrictions in the US to starting a (purely) online
lottery? Must I file any documents with the federal or local
government(s)?
Answer  
Subject: Re: Online Lottery
Answered By: journalist-ga on 08 Dec 2002 15:42 PST
 
Greetings Neoalec2k!  An online lottery falls under the definition of
Internet gambling and this is currently a sticky wicket of
interpretation.

There have been various acts proposed and passed to deal with Internet
gambling.  The Wire Wager Act is one.  However, with the advent of
wireless Internet and cellular communication, wagers would be wireless
in those instances so that law open to interpretation.  People with
dial-up modems or cable modems would be using a wire to wager.

Wire Wager Act commentary
http://www.4online-gambling.com/legal.htm

Wire Wager Act prosecution commentary
http://www.wsgc.wa.gov/FAQ/InternetGamblingFAQ.htm

Internet Gaming Prohibition Act an analysis - from The UCLA Online
Institute for Cyberspace Law and Policy
http://www.gseis.ucla.edu/iclp/alessani.html

The Travel Act
http://www.unc.edu/courses/law357c/cyberprojects/spring98/cybergambling/op_a2_travel.html

The Interstate Transportation of Wagering Paraphernalia Act 
http://www.gambling-online-casino-guide.com/legalities.html

"5. The Federal Aiding and Abetting Statute - Although this statute
does not specifically mention gambling, it applies to online gambling,
nevertheless. The statute provides that "whoever commits an offense
against the United States or aids, abets . . . or procures its
commission, is punishable as a principal." In order to be punished
under this Act, the perpetrator must assist in the commission of the
offense with the intent to assist and have "guilty knowledge" of the
offense. Further, the illegal act must actually be performed by the
principal lawbreaker."
http://www.casinodynastykorea.com/laws.html


Beside writing a program code whereby only US citizens could access
your proposed lottery (if that is what you intend), you would need to
check gambling laws in each state to ascertain if you would be
breaking the laws in any of those states.  For instance:

Online Gambling Laws
"Virtually all states have a state lottery system, which is considered
a form of gambling. Regulations on casino and Internet gambling vary
from state to state." (I suggest you read this entire article as it
explains the various federal acts regarding online gambling.)
http://www.casinodynastykorea.com/laws.html 

Washington state gambling commission
http://www.wsgc.wa.gov/FAQ/InternetGamblingFAQ.htm

Internet gambling industry wins key ruling - Backlash possible by Liz
Benston
http://www.lasvegassun.com/sunbin/stories/archives/2002/nov/22/514286284.html?gambling

Commissions and Gaming Boards
http://www.gamingfloor.com/Commissions.htm


Other articles of interest:

Regulation of Internet Gambling in the United States By Margaret Smith
Kubiszyn
http://www.gigalaw.com/articles/2000-all/kubiszyn-2000-09-all.html

Gambling regulations
http://www.casino-gambling-reports.com/GamblingStudy/GamblingRegulations/page7.htm

Internet gambling
http://www.casino-gambling-reports.com/GamblingStudy/InternetGambling/index.htm


In conclusion, it would depend on where your operation was based as to
its legality and which states' citizens could participate according to
laws in each state.  If you need clarification of my answer, please
request it (adding additional information regarding your proposed
lottery, if possible) and I will be happy to conduct further research.


SEARCH PHRASES:

Internet gambling license united states
online lottery
Internet lottery US law
"wire wager act"
"internet gambling prohibition act"
lotto casino
gambling commissions
commission gambling boards
internet gambling las vegas law
"The Travel Act"
"The Interstate Transportation of Wagering Paraphernalia Act"
Comments  
Subject: Re: Online Lottery
From: neilzero-ga on 09 Dec 2002 06:11 PST
 
As journelist ablely answered, starting or purchacing an on line
lottery bussiness is very risky. Customers who feel cheated will
report you to state bureaucrats who will likely lean on you even if
they have no clear authority to do so. Most potential customers will
avoid your service as they will expect you to cheat them. New laws,
and new court decissions will make your lottery less practical soon. 
Neil

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