I think a site like this can easily make more money then say a drug-store on darknet, but perfectly legal.
There are some challenges though, like multi account cheating, and bot players.
There are some challenges though, like multi account cheating, and bot players.
http://www.pokernews.com/news/2015/02/seals-with-clubs-chair...
The truth is, Micon was the "chairman", but the actual operations and such all took place out of country.
Crypto currency gambling is legal in the United States so long as there is no USD involved because crypto currencies are akin to stocks. You don't pay capital gains until you convert stocks into USD or other fiat currencies.
The implication is that somehow Micon may have been turning BTC from seals into USD and not giving a cut to the Nevada Gaming Commission.
Here's what it says:
(4) Financial transaction provider.— The term “financial transaction provider” means a creditor, credit card issuer, financial institution, operator of a terminal at which an electronic fund transfer may be initiated, money transmitting business, or international, national, regional, or local payment network utilized to effect a credit transaction, electronic fund transfer, stored value product transaction, or money transmitting service, or a participant in such network, or other participant in a designated payment system.
No person engaged in the business of betting or wagering may knowingly accept, in connection with the participation of another person in unlawful Internet gambling—
(1) credit, or the proceeds of credit, extended to or on behalf of such other person (including credit extended through the use of a credit card);
(2) an electronic fund transfer, or funds transmitted by or through a money transmitting business, or the proceeds of an electronic fund transfer or money transmitting service, from or on behalf of such other person;
(3) any check, draft, or similar instrument which is drawn by or on behalf of such other person and is drawn on or payable at or through any financial institution; or
(4) the proceeds of any other form of financial transaction, as the Secretary and the Board of Governors of the Federal Reserve System may jointly prescribe by regulation, which involves a financial institution as a payor or financial intermediary on behalf of or for the benefit of such other person.
Crypto coins are stocks, not money, according to the IRS. There are no written checks for crypto currency. There is no financial institution involved in the transmission of crypto currency.
How are they preventing underage gambling if the site is completely anonymous?
The anti-gambling/anti-poker laws from "Black Friday" in 2011 actually have to do with banking and USD.
This is why there are actually several US-facing card rooms operating out of country semi-legally - they do not do banking in the US, so they are not afoul of laws in most states. I believe New York is a notable exception along with a few other states which sites like Bovada will not accept US users from.
any idea if there's a way i could play on any of these sites in this manner ?
On the other hand, all of them have low volume of users, so you may not find a game immediately on any of them.
...for tax purposes by the IRS. That's completely separate from its treatment in regard to other things, like financial services (e.g., money transmitter) regulation, and potentially gambling regulation.