[AsylumWarden]

I'm curious how this would work. If I were to use this API to create, let's say, Bingo for money. How would I use the API without going to jail for running a gambling operation? I mean, I'm in the US so I guess I could always find an indian casino to back but that isn't likely without them taking a huge cut.

[davidtyleryork]

AsylumWarden, with us you don't need a gambling license and you run no risk of "going to jail" in the US. Betable handles and hosts all of the gambling transactions, so you don't touch any gambling. Therefore, you don't need a license and can be anywhere in the world.

[rprasad]

That's not true in the U.S. If he uses your site's gambling API, he is engaged in the business of gambling and must have a license. Since the U.S. generally does not allow online gambling, it is effectively illegal regardless of where the servers are physically stored.

FultTiltPoker and Bodog were both hosted from offshore (and generally run from offshore), but that did not help their U.S. owners in the slightest when the FBI came knocking.

Moreover, by using a gambling API on your own site, you place all of your bank accounts at risk of being frozen by your financial institution (if they are U.S. based) as U.S. financial institutions are not permitted to transfer funds to gambling sites. You could use an offshore bank, but this would increase compliance costs and guarantee an annual audit by the IRS.

EDIT: This assumes games are played for cash. Games played for virtual currency are not considered gambling unless they are easily convertible back into cash.

[davidtyleryork]

> That's not true in the U.S. If he uses your site's gambling API, he is engaged in the business of gambling and must have a license. Since the U.S. generally does not allow online gambling, it is effectively illegal regardless of where the servers are physically stored.

It's perfectly legal for an individual or company in the U.S. to develop and operate gambling software. What's not legal is offering services to players in the United States or elsewhere where gambling is illegal[1]. Betable offers the gambling services to players, not the developer partnering with Betable.

Furthermore, Betable does not allow real money play by players in jurisdictions where gambling is illegal. Game developers in the United States (or anywhere else) do not need to be licensed since the regulated bits of the infrastructure are all developed and operated by Betable. We strive to meet and exceed the regulatory standards that we're subject to and provide a legitimate and trustworthy ecosystem for players.

> FultTiltPoker and Bodog were both hosted from offshore (and generally run from offshore), but that did not help their U.S. owners in the slightest when the FBI came knocking.

Full Tilt Poker and Bodog are both examples of online gambling operations that flagrantly and publicly disregarded regulatory requirements and/or the law, offering their services illegally in the United States or, in the case of Full Tilt, (allegedly?) defrauding customers. Unsurprisingly, the FBI took offense to these violations. However, there's really no comparison between those operations and Betable. As I said before, Betable does not offer online gambling to players in the US, which is the main issue the FBI took offense to.

> Moreover, by using a gambling API on your own site, you place all of your bank accounts at risk of being frozen by your financial institution...

Betable manages all of the banking and accounting systems associated with gambling using its own accounts. Developer accounts are not used for gambling. Betable acts as the arbitrator of all gambling transactions.

1. In fact, with the recent re-interpretation of the Wire Act even that statement is now inaccurate at a Federal level, but that's another post.