Even if it isn't illegal in other countries, you should be very careful marketing it in the US. Because of recent banking and credit card litigations the government is cracking down on online betting. If you do decide to open this venture, you should seek certain ways to build credit, and make sure you familiarize yourself with the options out there.

Ah, you mean like an online casino that you can access from your PS3 and Xbox? I think this can be pretty tricky to get done since these consoles are very controlled and I dont think you can just setup a casino like that.

alexvig, Finding information online about the online gambling business is very difficult, does anyone have expertise in this area? Please feel free to add!

You'll also want to familiarize yourself with the U.S. Safe Web Act of 2006, which you can read about here: http://thomas.loc.gov/cgi-bin/bdquery/z?d109:S.1608:@@@L&summ2=m

ite wher No I mean a website where you could bet on the games people play against eachother.

Have you contacted your state's gambling authority yet to check? What federal organization oversees gambling? Have you contacted them? I'd guess one of these state/federal authorities could help with a step by step list of how to get started. You can also look into current businesses in the online gambling niche and see where they are registered and what type of company they are.

I did a quick search for federal regulations and came across the Unlawful Internet Gambling Enforcement Act of 2006. The American Gaming Association* provides more background on this Act and other gambling legislation, but this seems to be a complicated issue even within the gaming industry. MarkAse has a good point about contacting your state gaming authority, as many gambling laws are decided on the state level. *links to a non-government website

If you could operate a gambling business in your state is the first question. The next problem you will face is that accepting credit cards for online gambling is prohibited and would require you to go off shore. This would prove very expensive and the only players that you would be able to have legally would be outside of the country as well.

Hey thanks for all the great information. I was thinking maybe to solve the credit card problem, that I could start a phone card company or something like that and they would purchase minutes on the card and however many minutes they purchased would equate to dollars added to their account. I am pretty sure the only illegal part of gambling on the internet is accepting or adding money to the site through a credit card. This means that it may not be illegal to send checks. Do you think this is a step in the right direction?

alexvig - The resource I linked to above states that the Act 'prohibits gambling businesses from knowingly accepting payments in connection with unlawful Internet gambling, including payments made through credit cards, electronic funds transfers, and checks.' I also highly recommend that you consult with a small business lawyer to confirm how you should proceed. Message Edited by NicoleD on 12-15-2009 03:28 PM