This I believe is legal I'm not a lawyer because people are essentially paying a fixed price per month to use your service rather than being able to use the exact amount they added on the site to gamble with.
As an example, ClubWPT. There are some limitations though as to which states allow it and which states don't. Edit: Also, online gambling is legal in a lot of other countries other than the United States, so it still may be a viable business idea. Not sure I understand, your users will pay you to buy "virtual credits", and will gamble with those virtual credits?
If one can collect his virtual winnings in real cash, this is gambling. Regarding how "others" do it -- they set up shop in some island where gambling is legal, and they spend their lifetime fighting with credit card companies that continue to sabotage their efforts to collect money from users. It's not an easy life for those companies. Playing on Zynga poker is not gambling because Zynga poker chips are valueless.
Zynga themselves go to great lengths to ensure that there is no way for players to sell their chips on ebay etc. It's similar to playing for bottle caps. So, if you wanted to copy Zynga's business model exactly, that would be fine. Having said that, any business idea to do with gambling or anything else treading the fine line of the law would need to be discussed in detail with a good lawyer.
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State Department and a handful of states, but there are still some gray areas. In June, the Feds started cracking down on gamblers in an attempt to clear things up. Frank clearly faces a huge uphill battle from religious groups who see poker as a moral issue.
Maybe not. The answers to the first two are pretty clear—and not contested by Zynga. Poker is clearly considered gambling in the offline world, and poker specifically has been proven in New York State court to be a game of chance not skill in the case of New York v.
Nonetheless, the latter are as much games of chance as the former, since the outcome depends to a material degree upon the random distribution of cards. The third question is where things get murky. Zynga liberally gives people free chips every time they log in. But you can also buy chips. That constitutes the user betting something of value. So what about the outcome? Do users win something of value?
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