Can you start an online business say for example the practice is gambling in a state where online gambling is illegal, but conduct business in a state where gambling is legal?

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Can you start an online business say for example the practice is gambling in a state where online gambling is illegal, but conduct business in a state where gambling is legal?

This is just an example, but was wondering what the general rule of thumb is for being able to do out of state business due to your state of residency having restrictions. This question will probably depend on the type of business I’m guessing.

Asked on July 21, 2018 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, you may not. All aspects of the gambing business must be housed n a state in which it is legal. In a state in which online gambling is illegal, you cannot operate a gambling business even if you only provide the services out of state. Also, even in states where it is legal, online gambling is highly regulated: you would have to be get the proper license to do this.


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