Online Bitcoin Gambling in the US Arizona

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Online Bitcoin Gambling in the US Arizona

I’m trying to understand the legality of online gambling in the U.S. From what I see, it’s forbidden however, with Bitcoin not being recognized as legal tender, can the U.S. regulate, require a license for and/or shutdown a Bitcoin gambling site hosted in the U.S.? If so, does it matter where the website is hosted, or where the owner of the aforementioned site lives? I’m looking to venture into this technology and start a dice gambling site. I live in AZ so I’m wondering if you’d be able to shine some light onto this topic.

Asked on September 17, 2018 under Business Law, Arizona

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Gambling is only legal when conducted in accordance with the laws of the jurisdiction (government) where it is conducted. In the U.S., that means you have to comply with the laws (which generally, among other things, requires licensing) of the state (since gambing is primarily regulated at the state level) and/or tribal area (Indian reservation) where it is conducted. Conducted means both provided and having gamblers, so you need to comply with the laws of where you host and where people gamble. 
Gambling law is very technical, and it is easy to violate it, which you do not want to do--violations carry considerable penalties.
Consult with a gaming law attorney: you can find them through the American Gaming Association or International Masters of Gaming Law websites. Describe to the attorney what you want to do and let the attorney advise you as to where that might be legal or how to modify it to make it legal. If it's not economcially worth the cost to consult with a lawyer, it's not worth doing and taking the risks that come from providing illegal gambling.


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