Legal Question in Technology Law in Texas

Internet Business

Hi, My friend and I are considering opening up a business closely modeled after a competitor. We have come to notice that online video games are a growing industry and now they are being played for money in a way such as gambling. I know it is illegal to own a gambling company in the United States. However, I am unsure as to the legality of this type of business. A competitor site calls the matches ''1v1 tournaments'' and they also state that it is not gambling because there is no ''house advantage'' and that the games are based on predominately ''skill'' as opposed to luck. They also note that there are 9 states in which players can not be from because in their legal jurisdiction, it is illegal to play in games of chance. My question is whether or not this bypasses the law stating that internet gambling is illegal? My friend and I want to make a website that basically does the same thing but before we do so, we would like to know if it is a legal expedenture before we start something of this magnitude. Any and all input would be appreciated. Thanks in advance.


Asked on 6/21/07, 5:11 am

1 Answer from Attorneys
Johm Smith tom's

Re: Internet Business

I suggest you develop a business concept and consult with an attorney to make sure it will be legal or where it will be legal. This is a hot area both financially and legally right now and you don't want to go through anything close to what BetOnSports.com did. I can work with you on this if you wish. I would have to bill by the hour because this would be consulting and research. I focus on Internet matters and have experience in this particular area...most recently as general counsel for a domain registrar and hosting company that had hundreds of domains owned and used by the owners of BetOnSports.com.

Read more
Answered on 6/21/07, 10:45 am


Related Questions & Answers

More Computer & Technology Law questions and answers in Texas