Legal Question in Technology Law in North Carolina
Pari-mutuel betting, Internet law
What is the law for a private organization setting up a internet lottery service in the US.
1 Answer from Attorneys
Internet Gambling
The law in this area is in a state of flux. The final answers are not yet available.The major problems that companies have found are mostly related to the inter-state nature of the 'Net. A Nevada company, Granite Gate Resorts, has been sued in Minnesota because Minnesota residents were gambling over the Internet and gambling is illegal in Minnesota. The court is likely to find (although no decision has yet been reached) that the gambling occurred in Minnesota, rather than in Belize where the Webserver was located. If you restrict the gambling to only residents of your home state, then you may be able to set up some games. Check with a local attorney to determine the laws of your state that would affect the venture.A bill has been introduced in Congress that would prohibit gambling that takes place over state lines (H.R. 2380). You can read the text of this PROPOSED law by going to http://thomas.loc.gov/home/c105query.html and entering the bill number.