Referrals illegal?

[drunkguy]

This is a quote from a news story in another thread:

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> According to the U.S. Attorney’s Office, the men are accused of getting money for gambling advice and referring clients to offshore gambling casinos and receiving referral fees back from those casinos. <HR></BLOCKQUOTE>

RX thread link

Is this actually illegal? What are the legal prescedents?

 

[Dante]

Drunk... there is NO cut and dry law on offshore wagering yet , Hence the Kyl bill still stuck ...... its all in the Interpetation .

IMO

 

[FloydGondolli]

By taking a cut of the losses or the bets placed by the people you refer, you are essentially a bookie. I would think just giving selections and referring customers is OK, but when you take a % of their losses or bets, then you have broken the law. You become an agent.

Just my 2 cents, I could be wrong.

 

[drunkguy]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Floyd Gondolli:
By taking a cut of the losses or the bets placed by the people you refer, you are essentially a bookie. I would think just giving selections and referring customers is OK, but when you take a % of their losses or bets, then you have broken the law. You become an agent.

Just my 2 cents, I could be wrong.<HR></BLOCKQUOTE>

That could explain why some gambling sites are now offering a "flat fee" per referral as an option, instead of the typical % on loss.

 

[FloydGondolli]

drunk,

Yeah that makes sense. A flat ad rate like a newspaper charges (and is not dependent on the amount the person referred deposits, wins or loses) would seem perfectly OK, but any deal that involves how the referral does would seem to cross the line.

 

[JohnnyDeMarco]

Dante
Look up Federal law "1084" and then edit your post.

 

[Dante]

JD.... key word "WIRE COMMUNICATION" gray area... was he on the net or phone at the time. that is what I was refering to when Drunkguy asked about is it "Illegal"

[This message was edited by Dante on April 12, 2004 at 03:00 PM.]

 

[drunkguy]

FYI

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> Sec. 1084. - Transmission of wagering information; penalties


(a)

Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.

(b)

Nothing in this section shall be construed to prevent the transmission in interstate or foreign commerce of information for use in news reporting of sporting events or contests, or for the transmission of information assisting in the placing of bets or wagers on a sporting event or contest from a State or foreign country where betting on that sporting event or contest is legal into a State or foreign country in which such betting is legal.

(c)

Nothing contained in this section shall create immunity from criminal prosecution under any laws of any State.

(d)

When any common carrier, subject to the jurisdiction of the Federal Communications Commission, is notified in writing by a Federal, State, or local law enforcement agency, acting within its jurisdiction, that any facility furnished by it is being used or will be used for the purpose of transmitting or receiving gambling information in interstate or foreign commerce in violation of Federal, State or local law, it shall discontinue or refuse, the leasing, furnishing, or maintaining of such facility, after reasonable notice to the subscriber, but no damages, penalty or forfeiture, civil or criminal, shall be found against any common carrier for any act done in compliance with any notice received from a law enforcement agency. Nothing in this section shall be deemed to prejudice the right of any person affected thereby to secure an appropriate determination, as otherwise provided by law, in a Federal court or in a State or local tribunal or agency, that such facility should not be discontinued or removed, or should be restored.

(e)

As used in this section, the term ''State'' means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a commonwealth, territory or possession of the United States

<HR></BLOCKQUOTE>

Cornell Law

 

[Journeyman]

That sure does open many of us up, who hasn`t at some point gotten a bonus for referring someone?

 

[WildBill]

You can refer someone without assisting in the placing of wagers, although I guess you could see some really aggressive attorney trying to push that angle. I definitely though can see a case though if you get a portion of a player's losses, that is clearly benefitting from the bookmaker's operation and makes you a partner.

 

[oldmantime]

Journeyman, Not I.

First of all--if worse came to worse; a book might try to say you were "partners". (I think I've read where some had trouble in this area). Secondly, if the person you were to reccommend got in some type of trouble gambling---guess who they just might point to. Third--even walls have ears. They tell someone--who tells someone and guess what--you get a knock on the door.
All in all very little to be gained-much to worry about. IMHO

 

[lander]

Oddly enough, Floyd's thought process makes sense this time. (Halelujah - two more miracles and I'm Pope

)