Rakeback Terms & Conditions

jschell · #1 04-05-2005, 06:13 PM

Hi All,

I'm thinking about starting a rakeback program. How do I go about making up my terms & conditions agreement? Would I need to consult a lawyer, or is there an easier way, say some standard agreement that I could modify? Also, are there any other legal issues that I need to be aware of (I'm located in the US)? Thanks.

Justin

cavaliers09 · #2 04-05-2005, 06:52 PM

Offer to sign up as someones subaffiliate if you can use their terms and conditions for your site. Benefits both of you.

jschell · #3 04-05-2005, 07:28 PM

Too late for that, I already have my affiliate account for the site I would be starting with.

PPP · #4 04-05-2005, 09:56 PM

"Also, are there any other legal issues that I need to be aware of (I'm located in the US)?"

You mean aside from it being a felony in every state?

You don't have a license to run a gambling operation in your state, let alone any states where players live. Other people do it anyway of course.

absentx · #5 04-06-2005, 01:08 AM

Man PPP!!! you are the biggest antagonist ever!!!! Mention rake back and you just jump all over us!!!!

I still dont understand why you think being a "normal" affiliate is any different?!?!?!?

We all make commisions for referring players. What does it matter what we do with the money?!?!?!?!?!?

PPP · #6 04-06-2005, 01:42 AM

Jump all over who? (Take a pill and chill on the punctuation please...)

"Mention rake back and you just jump all over us"

I don't know what you mean by that, but anyway, rakeback is prohibited by some sites, and if you do it with them you are a cheat. Other sites allow it, so that is completely different and you have their permission.

"I still dont understand why you think being a 'normal' affiliate is any different"

What is not to understand? With rakeback you send money to individual people based on their play at an online gambling site where you profited from their play. Obviously that is illegal. It is different than "normal" affiliates in that you deal with specific people, where you clearly knowingly break some state laws, like if you have a player located in Utah. "Normal" affiliates can just throw up their hands and say they don't know where these players are located. They could all be in the UK for example.

"We all make commisions for referring players. What does it matter what we do with the money"

No we "all" don't. I never take MGR because it is illegal for a US citizen. (More importantly to my own personal choice, I believe it illegal.)

It should be clear that it matters "what you do" with the money if you are paying a person to break laws in their state. Duh. It is clearly a major extra step on a legal spectrum.

1) Taking upfront paid advertising doesn't require you to have anything to do with whether someone gambles after clicking a link of yours or not.
2) Taking CPA is a next step where you still don't care how much anyone gambles.
3) Taking MGR you are now in partnership with an online gambling entity where you benefit directly from whether people gamble online or not. However, in general you don't know where these people are, or what laws of their localities are.
4) Doing rakeback you deal with specific individuals in specific geographic locations where your interaction with this person is subject to not just your local laws, but theirs also, and your involvement in the gaming process is doubled over just taking MGR, literally you have money coming and going.

Do what you want, but the answer to the person's question is that there is much greater legal risk involved in rakeback.

Nelson's Rose's article is very helpful in thinking about this stuff:
http://www.gamblingandthelaw.com/Int...uidelines.html

jschell · #7 04-07-2005, 07:11 PM

So, I would like some opinions on this. I am based in the US. If I start a small rakeback site on a privately registered domain, how likely is it that I will get in trouble? I don't plan on getting some massive player base or providing programs for a large number of sites (plan was to only start with one). I am doing affiliate work in my spare time for some extra cash, so I don't expect to be generating a huge chunk of revenue. Thanks for any opinions, and I know that the most I can hope for is an eductated guess.

Justin

texignweb · #8 04-07-2005, 10:32 PM

Trust me, you won't find yourself in trouble with the law.

cavaliers09 · #9 04-07-2005, 11:11 PM

Just tell them the WTO said it was ok.

richardb · #10 04-08-2005, 01:41 AM

Quote:

Originally posted by texignweb@Apr 7 2005, 08:32 PM
Trust me, you won't find yourself in trouble with the law.

Instead of saying that you will not get in trouble, I think it would be best to say that everyone should do their own research and "play at your own risk."

I have not heard of any casino/poker affiliate getting in trouble with the law, but who knows what is going on behind the scenes.