Bitcoin Forum
November 20, 2017, 12:22:41 PM *
News: Latest stable version of Bitcoin Core: 0.15.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: NPR: Is Online Gambling Legal If Bitcoins, Not Dollars, Are At Stake?  (Read 890 times)
BCB
CTG
VIP
Legendary
*
Offline Offline

Activity: 1036


BCJ


View Profile
February 06, 2013, 03:41:16 PM
 #1

Podcast an article today.
http://www.npr.org/blogs/alltechconsidered/2013/02/06/171182974/is-online-gambling-legal-if-bitcoins-not-dollars-are-at-stake



by Cyrus Farivar
February 06, 2013 3:01 AM
Morning Edition
3 min 32 sec

With no government ties, Bitcoin is used to buy everything from blogging services to Brooklyn-made cupcakes. Theoretically, millions of dollars are being kept in the digital currency, and it's increasingly being used by specialized online gambling websites. But is Bitcoin gambling legal?

Purely in the interests of journalism, I decided to get my hands on some of the currency. When I did so, Bitcoin, which has been around for a few years now, was fetching around $17 on most exchange sites. It has since risen to more than $20.

It turns out that it's really easy for someone to give you Bitcoin, but it's less easy to just buy them from a third party. I ended up asking a friend with some Bitcoin to help — I told him I'd buy him a couple beers later. So, I created a Bitcoin account, and he shot me a few.

The first gambling site I tried was SatoshiDice, an online dice game specifically designed for Bitcoin. Honestly, it's a pretty boring game. You just bet on whether a random dice roll will come up below a certain value.

After I bet 0.02 Bitcoin, SatoshiDice sent an email saying I won. So, I bet the equivalent of 34 cents and I won 38 cents, meaning I came out a little bit ahead.

The federal government says online gambling is a no-no. In the last few years, the Justice Department has made it very clear: You can't just open up an offshore casino online and start taking bets using actual money from the United States.

But last year, a couple of entrepreneurs asked themselves — what if you were only betting with Bitcoin?

"What Bitcoin does is that it totally circumvents that," says Jerry Brito, who studies the currency as part of his work as a senior research fellow at the Mercatus Center at George Mason University. "There is no Bitcoin company, there's no Bitcoin building that regulators can get their hands on. It's basically cash."
One bitcoin will get you this nerd merit badge.
Planet Money
What Is Bitcoin?
Room 77
Life in Berlin
Berlin Restaurant Experiments With Virtual Currency

This month, Brito has been following news of SatoshiDice's financial reports. The dice-game company says it made the equivalent of over half a million dollars in profits in just six months of operation in 2012, accepting bets in Bitcoin. But that betting could turn into a legal black hole.

After all, no one knows if Bitcoin is money, a financial instrument or something else.

"We don't have a bank account at Seals with Clubs," says Bryan Micon, the spokesperson for SealsWithClubs.eu, a Bitcoin-based poker site. "There's no bank account. There's no bank of any sort that we do. We only do this one weird brand-new Internet protocol transaction that some of the nerds out there are calling money."

Micon says it might be tough for the Feds to regulate what is just a piece of computer code and not real money.

I started to wonder if I broke the law by gambling online using Bitcoin. So I called the Justice Department. It declined to comment for this story.

But here's the thing with gambling with Bitcoin: My winnings are still in Bitcoin. It's up to me to convert those back into dollars. And that extra step is deliberate, says Brito of George Mason University.

"The fact that they are doing that seems to suggest that they themselves are not 100 percent sure that this will be seen as perfectly legal by regulators," he says, "wherever they're based."

For now, I still have 0.8 Bitcoin in my account, worth about $13 — assuming that it's not raided by the feds.
1511180561
Hero Member
*
Offline Offline

Posts: 1511180561

View Profile Personal Message (Offline)

Ignore
1511180561
Reply with quote  #2

1511180561
Report to moderator
1511180561
Hero Member
*
Offline Offline

Posts: 1511180561

View Profile Personal Message (Offline)

Ignore
1511180561
Reply with quote  #2

1511180561
Report to moderator
1511180561
Hero Member
*
Offline Offline

Posts: 1511180561

View Profile Personal Message (Offline)

Ignore
1511180561
Reply with quote  #2

1511180561
Report to moderator
Join ICO Now A blockchain platform for effective freelancing
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1511180561
Hero Member
*
Offline Offline

Posts: 1511180561

View Profile Personal Message (Offline)

Ignore
1511180561
Reply with quote  #2

1511180561
Report to moderator
1511180561
Hero Member
*
Offline Offline

Posts: 1511180561

View Profile Personal Message (Offline)

Ignore
1511180561
Reply with quote  #2

1511180561
Report to moderator
1511180561
Hero Member
*
Offline Offline

Posts: 1511180561

View Profile Personal Message (Offline)

Ignore
1511180561
Reply with quote  #2

1511180561
Report to moderator
debianlinux
Full Member
***
Offline Offline

Activity: 221


View Profile
February 06, 2013, 03:45:17 PM
 #2

For now, I still have 0.8 Bitcoin in my account, worth about $13 — assuming that it's not raided by the feds.

FUD alert.

Coins are not stored in accounts. Coins aren't even stored in wallets. There is no way to "raid" another's coins without a private key. How available your private key is entirely up to you.
BCB
CTG
VIP
Legendary
*
Offline Offline

Activity: 1036


BCJ


View Profile
February 06, 2013, 03:51:31 PM
 #3

For now, I still have 0.8 Bitcoin in my account, worth about $13 — assuming that it's not raided by the feds.

FUD alert.

Coins are not stored in accounts. Coins aren't even stored in wallets. There is no way to "raid" another's coins without a private key. How available your private key is entirely up to you.

Can you post that in the comments??  The author and the general public need to be correctly informed.
debianlinux
Full Member
***
Offline Offline

Activity: 221


View Profile
February 06, 2013, 03:55:15 PM
 #4

Feel free to duplicate my post. There is no way I am registering an account at NPR.
BitcoinINV
Sr. Member
****
Offline Offline

Activity: 448



View Profile
February 06, 2013, 03:55:38 PM
 #5

Price spike alert lol, I love NPR I donate to them every year. Glad they covered bitcoins and knowing NPR this will lead to more reporting on the subject.

JustJake
Member
**
Offline Offline

Activity: 61


Numisalis - Physical Tradable Bitcoin


View Profile WWW
February 06, 2013, 04:47:33 PM
 #6

So ... many ... factual ... inaccuracies.  Received an email from SatoshiDice?

Anyway, I think the law is purposefully ambiguous so the powers that be can come after you for anything.  I was thinking about a gambling game I could make and thought that instead of running the risk of interpretative law by some ass hat I would sell the source code to an overseas operation where running it would be legal and wash my hands of it.  The next day I read an article about someone who licenses gambling software to companies that can legally run the software and his house is raided by the swat team.  Proof that gestapo tactics work.  I am not putting myself under that risk even if I think I would win in court.
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!