First, let me offer a little clarification regarding those infamous "manipulative costs" that everyone seems to be buzzing about lately.
According to Section 51, Subsection 3 of the Gambling Control Act:
"The operator is required to pay a monthly fee to the federal treasury amounting to 5% of the base, which consists of the total amount deposited, due by the fifteenth day of the current month for the preceding month."
So, in essence, we end up footing the bill for what the sportsbook should actually be paying! Does that make things a bit clearer for those who were still feeling confused?
Take a look at this:
Chapter IX FOREIGN OPERATOR REGULATIONS
Section 68
(1) It is strictly prohibited to:
1. Organize games listed under Section 5 or prize competitions under Section 69 of this Act within the United States by foreign operators,
2. Participate in foreign gambling activities if the stakes are being placed within the United States,
3. Collect wagers within the United States for participation in gambling games organized abroad,
4. Sell, hold, commercially assign, issue, advertise, or otherwise promote or market foreign gambling games or prize competitions within the United States.
(2) The prohibition mentioned in Subsection 1, Point 4 applies equally to service providers and publishers.
(3) Individuals who do not hold American citizenship but are temporarily residing in the United States are permitted to hold funds or credits from foreign gambling games for their own personal participation.
- Let us begin our analysis with Section 69, Subsection 1, Point 1 of this legislation.
(Note that betting games fall under Section 5)
Foreign operators conduct their gambling activities (in this case, sports betting) within the territory where they are officially registered; therefore, they are not operating on American soil.
- Now, looking at Section 69, Subsection 1, Point 2:
The wagers are simply not being placed within the United States.
- Moving on to Section 69, Subsection 1, Point 3:
Wagers aren't being collected here in the States, as they are paid out abroad. This used to be a common tactic back in the day—you know, a group of five or six people would gather together, pick their numbers for an overseas lottery, and then send the payments across the border.
- And finally, Section 69, Subsection 1, Point 4:
The actual bettors have nothing to worry about regarding this specific rule (unless, of course, they are the ones running the advertisements). If my memory serves me correctly, following this logic, a network like "24 Hours" should be facing massive penalties for handing out vouchers for "Bet-at-Home." I distinctly remember seeing advertisements for Bwin around Central Park, and just a year ago during the handball championships, there were ads everywhere for that Bet-at-Home sportsbook!
But here is the most vital takeaway:
If the law does not explicitly forbid it (labeling it illegal), then it is perfectly permissible!