Bitcoin Forum
December 16, 2017, 01:50:55 PM *
News: Latest stable version of Bitcoin Core: 0.15.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1] 2 »  All
  Print  
Author Topic: Some basic legal questions about opening a bitcoin gambling site  (Read 980 times)
BobBoga
Newbie
*
Offline Offline

Activity: 2


View Profile
August 27, 2016, 09:33:38 PM
 #1

I'm looking into the possibility of starting a small esports bitcoin betting site but I'm pretty uninformed on the legal aspects involved. My biggest question is about transferring bitcoin from the site to USD. From what I've read, it seems like this is where you can get into trouble. Is there a way to legally transfer profits from a site like this to fiat money?
Also, would it benefit for a site like this to be based outside of the US in a place like Costa Rica? If it were, would there be any legal issue with accepting users from the US?
Thanks for any help you can give me.
1513432255
Hero Member
*
Offline Offline

Posts: 1513432255

View Profile Personal Message (Offline)

Ignore
1513432255
Reply with quote  #2

1513432255
Report to moderator
1513432255
Hero Member
*
Offline Offline

Posts: 1513432255

View Profile Personal Message (Offline)

Ignore
1513432255
Reply with quote  #2

1513432255
Report to moderator
"Bitcoin: mining our own business since 2009" -- Pieter Wuille
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1513432255
Hero Member
*
Offline Offline

Posts: 1513432255

View Profile Personal Message (Offline)

Ignore
1513432255
Reply with quote  #2

1513432255
Report to moderator
1513432255
Hero Member
*
Offline Offline

Posts: 1513432255

View Profile Personal Message (Offline)

Ignore
1513432255
Reply with quote  #2

1513432255
Report to moderator
1513432255
Hero Member
*
Offline Offline

Posts: 1513432255

View Profile Personal Message (Offline)

Ignore
1513432255
Reply with quote  #2

1513432255
Report to moderator
Hellacopter
Hero Member
*****
Offline Offline

Activity: 700


View Profile
August 27, 2016, 10:39:05 PM
 #2

I think there is no issue about opening a bitcoin gambling site as far as you don't scam people and you install the provably fair game into your site. Then you can exchange the bitcoin from your wallet to your banking ewallet easily too
European Central Bank
Hero Member
*****
Offline Offline

Activity: 812



View Profile
August 27, 2016, 10:42:57 PM
 #3

i seriously doubt you could afford to run a compliant gambling site. if you're anywhere near the us you're gonna get yourself in a world of legal pain. better to stay anonymous and host it elsewhere.

if you try to cash out via places like coinbase or bitpay or anywhere with American presence and they find out it's gambling profits they'll get rid of your custom asap.

       ▀
   ▄▄▄   ▄▀
   ███ ▄▄▄▄  ██
       ████
    ▄  ▀▀▀▀
▄▄
      ██    ▀▀
██▄█▄▄▄████████
▄▄▄▄▄▄▄▄▀▀███▀▀▀
██████████████████
████▄▀▄▀▄▀███▀▀▀▀▀
████▄▀▄▀▄▀███ ▀
████▄▀▄▀▄▀████████
▀█████████████████
]
,CoinPayments,
█████
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████
█████
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████
█████
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████
nejibens
Hero Member
*****
Online Online

Activity: 672


View Profile
August 27, 2016, 11:01:57 PM
 #4

I don't think there is lagal issues about opening a bitcoin gambling site, or about exchange the btc into fiat, the real problem is that you have to start with really good budget to start such site

Velkro
Legendary
*
Offline Offline

Activity: 1288


<3 Vanity Addresses :)


View Profile
August 27, 2016, 11:03:59 PM
 #5

I don't think there is lagal issues about opening a bitcoin gambling site, or about exchange the btc into fiat, the real problem is that you have to start with really good budget to start such site
Additionally, face massive competition. Its tech people world, and you are im assuming not tech person.
Anyway, good luck, you will need it. Make one mistake and community will eat you alive.

BobBoga
Newbie
*
Offline Offline

Activity: 2


View Profile
August 27, 2016, 11:39:00 PM
 #6

i seriously doubt you could afford to run a compliant gambling site. if you're anywhere near the us you're gonna get yourself in a world of legal pain. better to stay anonymous and host it elsewhere.

if you try to cash out via places like coinbase or bitpay or anywhere with American presence and they find out it's gambling profits they'll get rid of your custom asap.

Thanks for the reply man, I'm new to all of this and I'm more just curious about how it would be done. Could you elaborate on what you mean by staying anonymous? I'm also not sure what you mean that they'll get rid of my custom.
European Central Bank
Hero Member
*****
Offline Offline

Activity: 812



View Profile
August 27, 2016, 11:45:17 PM
 #7

Thanks for the reply man, I'm new to all of this and I'm more just curious about how it would be done. Could you elaborate on what you mean by staying anonymous? I'm also not sure what you mean that they'll get rid of my custom.

Coinbase, Circle and any other US based place is legally obligated to have nothing to do with gambling. they shut down regular customers if they trace one of their addresses to a gambling site so you won't have a chance if they discover the coins you're selling to them or through them have come from gambling.

I dunno how thorough they are but these guys are super uptight about staying compliant.

as for staying anonymous, this is what happens in America if you're operating a gambling site without spending a billion on lawyers - http://www.pokernews.com/news/2015/02/seals-with-clubs-chairman-bryan-micon-police-raid-20740.htm

       ▀
   ▄▄▄   ▄▀
   ███ ▄▄▄▄  ██
       ████
    ▄  ▀▀▀▀
▄▄
      ██    ▀▀
██▄█▄▄▄████████
▄▄▄▄▄▄▄▄▀▀███▀▀▀
██████████████████
████▄▀▄▀▄▀███▀▀▀▀▀
████▄▀▄▀▄▀███ ▀
████▄▀▄▀▄▀████████
▀█████████████████
]
,CoinPayments,
█████
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████
█████
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████
█████
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████ ██
█████
wintermeasures
Sr. Member
****
Offline Offline

Activity: 322



View Profile
August 28, 2016, 02:14:46 AM
 #8

I'm looking into the possibility of starting a small esports bitcoin betting site but I'm pretty uninformed on the legal aspects involved. My biggest question is about transferring bitcoin from the site to USD. From what I've read, it seems like this is where you can get into trouble. Is there a way to legally transfer profits from a site like this to fiat money?
Also, would it benefit for a site like this to be based outside of the US in a place like Costa Rica? If it were, would there be any legal issue with accepting users from the US?
Thanks for any help you can give me.

I Don't Think Their any Legal Issues If You Open  Bitcoin Gambling Website......
There is No Problem Until You Are Paying And Provably Fair and Don't Scam People.....
Kprawn
Legendary
*
Offline Offline

Activity: 1330


★Bitvest.io★ Play Plinko or Invest!


View Profile
August 28, 2016, 03:56:45 PM
 #9

They {government} will come down on you like a ton of bricks, if you are not properly licensed. Some big sites moved to places like Curacao to be

governed by them, and these places benefit from the taxes. Curaçao is an island country in the southern Caribbean Sea, approximately 65 kilometres

(40 mi) north of the Venezuelan coast. These sites still have to filter users based on their country of origin, to prevent legal action.  Roll Eyes

sukamasoto
Legendary
*
Offline Offline

Activity: 1092


DIMPAY: Invest for Tomorrow. Today.


View Profile
August 28, 2016, 04:01:18 PM
 #10

My goverment also forbid bitcoin usage but they did not punish bitcoin user ( get into jail )
Bitcoin holder only able to help theirself !! Our goverment will not take care of us

So just make sure that your goverment will not against for who using bitcoin before try to do something with bitcoin

zoave.com
Newbie
*
Offline Offline

Activity: 8

Free PDF eBooks of seduction at https://zoave.com/


View Profile WWW
August 30, 2016, 12:31:41 PM
 #11

Even if it is illegal to gamble in your country you can always use a VPN and Tor browser to be anonymous when you are creating your site.

Free PDF eBooks of seduction at https://zoave.com/
ethereumhunter
Hero Member
*****
Offline Offline

Activity: 602


★777Coin.com★ Fun BTC Casino!


View Profile
August 30, 2016, 12:51:29 PM
 #12

how the condition in your country? i mean is bitcoin acceptable by government? if no statement from government so you don't have to be afraid, to transfer profit which is in bitcoin you don't have to choose bank or government service but maybe you can use localbitcoin which near around you to withdraw your bitcoin into US dollar or you use perfect money.

if costa rica allow gambling then you are fine, but if not, then you can be hunt by government, because when you register domain name, and make your gambling site, the government can get your details, and if gambling its allow in your country, then government have the right to shut down your website and hunt you wherever you go.

Coinster
Full Member
***
Offline Offline

Activity: 166


View Profile WWW
August 30, 2016, 07:40:41 PM
 #13

Welcome to the world of Bitcoin!

I'm happy to break things down as I considered doing something similar. To save a bunch of reading my own decision was to work on things other than gambling.

To start you have to decide: try to remain legal, or rebel and do things your way and take your chances. Bitcoin makes the rebellious option possible. It's very tempting and there is much money to be made. The risks can be high, though. Ross Ulbricht made over 20 million dollars in just a couple years, but got caught and is now serving life in jail for running the Silk Road drug marketplace. At the same time there are new drug marketplaces running that learned from those mistakes, and I'm sure they're raking in cash.

Gambling sites are not as likely to attract such high powered law enforcement (as in federal level), but if your operation serves the US and you're not legal you'll still always be looking over your shoulder. The next knock might be from state or federal agents ready to search and seize your property, tie you up in court cases/fines and/or put you in jail.

To be compliant with Bitcoin/Gambling or other sites, the easiest option is to just not serve the US market. Have your server block all US IP addresses and go a step further by asking users to verify they are not in the US. Try to catch someone from the US using your site, kick them out and record that fact. All this makes a stronger defense in any court case about your legality if it came to it (note: this advice comes from an actual lawyer).

To be a legal Bitcoin gambling site in the US will cost a lot. First you need appropriate gambling licenses. Next, since you're holding people's bitcoins you need to register with FinCEN as a money transmitter and all states your operation serves as appropriate. The FinCEN registration is easy, but the state level part can be costly. Then there is the ongoing cost of remaining compliant.

Also note: according to FinCEN any site you set up that holds bitcoins (or other virtual currency) for users requires you to register with them, not only gambling. This is why for many businesses, it's easiest to just skip the US entirely.

Hope this helps.

TrustedCoinTrades.com - Anonymous, Trusted P2P trading  - https://trustedcointrades.com - PayPal / Checks / Bank Transfer / $100 Safety Guarantee!
goldcoinminer
Hero Member
*****
Online Online

Activity: 700



View Profile
August 31, 2016, 06:05:07 AM
 #14

Even if it is illegal to gamble in your country you can always use a VPN and Tor browser to be anonymous when you are creating your site.
If you are really interested in opening a bitcoin gambling site then you can do it, as long as it is online there is no major problem because you can make the necessary measures to hide your important information that will link you on the gambling sites you are operating and the good thing is that is bitcoin and it is anonymous so you are safe though.

██████████████████            ██████████
████████████████              ██████████
██████████████          ▄█   ███████████
████████████         ▄████   ███████████
██████████        ▄███████  ████████████
████████        ▄█████████  ████████████
██████        ▄███████████  ████████████
████       ▄██████████████ █████████████
██      ▄███████████████████████████████
▀        ███████████████████████████████
▄          █████████████████████████████
██▄         ▀███████████████████████████
████▄        ▀██████████████████████████
██████▄        ▀████████████████████████
████████▄        ████████████████▀ █████
██████████▄       ▀█████████████  ██████
████████████▄       ██████████   ███████
██████████████▄      ▀██████    ████████
████████████████▄▄     ███     █████████
███████████████████▄    ▀     ██████████
█████████████████████▄       ███████████
███████████████████████▄   ▄████████████





▄█████████████████   ███             ███   ███   ███▄                ▄███            █████            ████████████████   ████████████████▄             █████
███▀                 ███             ███   ███   ████▄              ▄████           ███████           ███                ███           ▀███           ███████
███                  ███             ███   ███   █████▄            ▄█████          ███▀ ▀███          ███                ███            ███          ███▀ ▀███
███                  ███             ███   ███   ███ ███▄        ▄███ ███        ▄███▀   ▀███▄        ███                ███           ▄███        ▄███▀   ▀███▄
███                  ███████████████████   ███   ███  ▀██▄      ▄██▀  ███       ▄███▀     ▀███▄       ████████████████   ████████████████▀        ▄███▀     ▀███▄
███                  ███             ███   ███   ███   ▀███    ███▀   ███      ▄███▀       ▀███▄      ███                ███        ███          ▄███▀       ▀███▄
███                  ███             ███   ███   ███    ▀███  ███▀    ███     ▄███▀         ▀███▄     ███                ███         ███        ▄███▀         ▀███▄
███▄                 ███             ███   ███   ███      ██████      ███    ▄███             ███▄    ███                ███          ███      ▄███             ███▄
▀█████████████████   ███             ███   ███   ███       ████       ███   ▄███               ███▄   ████████████████   ███           ███    ▄███               ███▄

|
  TRUE BLOCKCHAIN GAMING PLATFORM 
DECENTRALISED AUTONOMOUS UNIVERSES

  HOME PAGE                                                                  WHITE PAPER 
|
Stedsm
Legendary
*
Online Online

Activity: 1148


View Profile
August 31, 2016, 11:48:59 AM
 #15

You can make an alternative website where you can create fake invoices for selling some stuff like books, goods, services, and can ask people to buy such things from you and pay you in USD, and in real, these people will be the persons who will be buying your coins from you against fiat, that way you won't be in any trouble.

xht
Sr. Member
****
Offline Offline

Activity: 462

hey you, yeah you, fuck you!!!


View Profile
August 31, 2016, 08:40:44 PM
 #16

I don't know much about legalization but i think you are safe if opened bitcoin gambling site and all circulation money only with bitcoin so you can mixing your profit earning from the business you run.

roadbits
Legendary
*
Offline Offline

Activity: 1078


View Profile
September 01, 2016, 12:40:52 AM
 #17

Even if it is illegal to gamble in your country you can always use a VPN and Tor browser to be anonymous when you are creating your site.
If you are really interested in opening a bitcoin gambling site then you can do it, as long as it is online there is no major problem because you can make the necessary measures to hide your important information that will link you on the gambling sites you are operating and the good thing is that is bitcoin and it is anonymous so you are safe though.
For safer side Bitcoin casino is good. And yes if you can able to create Bitcoin casino means if you have a full source you can create n problem. As a mate said you could hide the necessary information means it is easy to run an online casino. But I don't know your cash out method will work out or not. Because if Bank involved means, it would become legal so govt have a chance to catch. Take some more suggestions and continue all the best.
carriagehoodlum
Full Member
***
Offline Offline

Activity: 135


Tipsters Championship www.DirectBet.eu/Competition


View Profile
September 01, 2016, 12:46:05 AM
 #18

I dont think if any legalization to start gambling site but for example in other country they ban the online gambling this is have a legal act.
Lionidas
Hero Member
*****
Offline Offline

Activity: 756


View Profile WWW
September 01, 2016, 02:16:20 AM
 #19

Don't expect to open a casino online in the united states because online gambling is illegal and you can be fined. It happened to a major gambling outfit in the past and they tried to move into the market there but got chased out from doing it. I think it was bodog from the UK.

ranlo
Legendary
*
Offline Offline

Activity: 1610



View Profile
September 01, 2016, 02:20:35 AM
 #20

I'm looking into the possibility of starting a small esports bitcoin betting site but I'm pretty uninformed on the legal aspects involved. My biggest question is about transferring bitcoin from the site to USD. From what I've read, it seems like this is where you can get into trouble. Is there a way to legally transfer profits from a site like this to fiat money?
Also, would it benefit for a site like this to be based outside of the US in a place like Costa Rica? If it were, would there be any legal issue with accepting users from the US?
Thanks for any help you can give me.


Get an attorney. Don't be stupid enough to accept someone's answer on these forums when it comes to the law. When you get arrested, the judge isn't going to care that "some anonymous person on the Internet" told you through a forum.


 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




















Earn Devcoins by Writing
Pages: [1] 2 »  All
  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!