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Is Being a Poker Affiliate Legal? The short, correct answer is, "It depends". (That's the short, correct answer to most questions though.) Don't misconstrue this article as legal advice. It's meant to be a summary of the best information I could find on the subject. Newbies to promoting online poker often ask if being a poker affiliate is legal. They usually ask this question in a discussion forum online somewhere. The first point I'd like to make in this article is that under almost no circumstances should you rely upon a bulletin or discussion board online for legal advice. All legal questions should be referred to an appropriate professional, and you should make decisions based on the counsel of someone in the legal profession you trust and your own best judgment.
To my knowledge, there is no federal law which prohibits online wagering. The justice department points to the Wire Act in letters to large media companies when it wants them to stop running advertisements for Golden Palace and Party Poker. In fact, Google and Yahoo both stopped running advertising for online gambling when the justice department sent them letters advising them that they could be aiding and abetting a federal crime.
Casino City filed a lawsuit against the federal government regarding the chilling effect this action had on free speech in the USA. The case has been dismissed, but Michael Corfman and Casino City are appealing that decision. Casino City's contention is that the government's tactics have made it difficult for Casino City to continue to run their business, since they relied on Google and Yahoo for advertising. The government contends that the lawsuit is bogus because if Casino City's doing nothing wrong, they're not under any kind of real threat from the government.
All of this is merely background. The question you're interested in is whether or not you can safely promote online poker and make money at it. The answer again is, "It depends". It depends on the state laws where you reside. It also depends on the nature of your relationship with the poker room. Are you working on a revenue share basis, an advertising basis, or a CPA basis? Each option has a different legal risk, and each option has advantages and disadvantages from both a legal and a monetary perspective.
One very sticky legal situation is running a rakeback or rake rebate site. If you're on a rev share program, and you're sending a percentage of the rake back to the player in exchange for their signing up under your affiliate code, you've become much more of a participant or 'partner' in an online gambling transaction than if you simply received a flat monthly payment for an ad on your website.
Paying a rake rebate back to a customer implies that you know where a customer lives, and if they live in a state where online gambling is explictily illegal, then you could be considered to be a partner in a gambling business. Or you could be aiding and abetting. That's a big difference from running a banner on a website for $1000 a month. If you're merely running an ad on your site, you're allowing visitors from anywhere in the world the opportunity to make their own decision about whether or not to place a wager online.
Running a business always involves risk/reward evaluations. One question you need to ask yourself is how can you minimize your legal and financial risks while maximizing your financial rewards. Consulting with an attorney is a step in the right direction. Reading some of the better information on the web is another step in that direction too.
I recommend taking a look at some of the following articles online:
Do your homework and make an educated and responsible choice about promoting online poker. There is more information available on the web, but please consult a professional and also do some thinking about risk vs. reward. I'm sorry I can't provide a clearcut answer as to whether or not it's 100% legal to promote online poker. But I do hope I've pointed you in the right direction so you can make some educated decisions regarding the legality.
And if you leave this article with nothing else, please leave it with the knowledge that listneing to legal advice on a message board is a bad idea usually. This article is for entertainment and informational purposes only, and is in now way to be construed as offering professional legal advice. |
Jun 17, 2008
