Bitcoin gambling website - legal or illegal ???

[BitcoinSolutions.com]

I live in USA.
I want to create a Bitcoin gambling website on my domain name WinBitcoins.com

Some simple game like...
11 people send me .1 BTC each to play.
I pick one random winner and pay out 1 BTC and keep .1 BTC

Is this considered gambling and is it legal or illegal in USA?

[1714866987]

1714866987

[lightlord]

The problem is, you benefit more if you keep all 11 people's .1 instead of taking .1 for yourself.
We have to trust that you won't run away and be legit. All that for very low RTP.
Unless you did escrow, or so. What stops you from just running away creating a new newbie account
and banking 11 times more?

And you only created your account like 23 mins before your OP

I live in USA.
I want to create a Bitcoin gambling website on my domain name WinBitcoins.com

Some simple game like...
11 people send me .1 BTC each to play.
I pick one random winner and pay out 1 BTC and keep .1 BTC

Is this considered gambling and is it legal or illegal in USA?

[bitbaby]

There is the trust issue as already explained above plus not many people would be interested in this. It's much easier and entertaining for them to play on so many different gambling sites offering so many games.

[ComboChris]

As far as i know online gambling is a legal problem in the USA, furthermore there is really no point for people to gamble on your site if you don't provide anything new and revolutionary.
Otherwise everbody would just make their own online casino.

[Testing123]

Other than the trust and legal issue mentioned already, you have to thing of a provably fair scheme to pick the winner, and lower your house edge % significant, or you cannot be able to attract players.

[Stars]

Other than the trust and legal issue mentioned already, you have to thing of a provably fair scheme to pick the winner, and lower your house edge % significant, or you cannot be able to attract players.

This. Why would anybody play with your extremely high house edge when they can play with a 1% house edge at places that have already proven there legitimacy?

[NeuroticFish]

I'd say that it is clearly gambling.
As people has already stated, your "example" game has a lot of flaws, I really hope that it's not the game you actually intend to provide.

Now, if you indeed have a good game to offer, I think that you should ask again, maybe on another thread, about the laws related to this (I am not from US and I cannot help); maybe registering (another) site in Cayman Islands fixes the problem :p

[Omikifuse]

Yes it is probably illegal.

But it is small fish, so if you don't shout you are from US and don't disclose personal info hen I think you will have no problem. I guess the FBI would not bother to make Theymos reveal your IP and stuff.

About the game: I would lower the minimum investment and the house edge. Maybe by giving lower rewards too?

About trust: if everything is doing using escrow, including the way of selecting winner, I think trust won't be an issue

But still need to think about a fair way of selecting the winner

[Snail2]

As I seen there aren't too much interest in raffle like games here, so probably you would struggle to find players. Not to mention that not much ppl would bet 0.1 BTC with such slim chances to win.

[KeyserSozeMC]

I live in USA.
I want to create a Bitcoin gambling website on my domain name WinBitcoins.com

Some simple game like...
11 people send me .1 BTC each to play.
I pick one random winner and pay out 1 BTC and keep .1 BTC

Is this considered gambling and is it legal or illegal in USA?

So, 90% of people should pay you to lose in other words?
Or what if you or some of your buddies is the "winner"?

Wake up. That's robbing.

[philiveyjr]

I live in USA.
I want to create a Bitcoin gambling website on my domain name WinBitcoins.com

Some simple game like...
11 people send me .1 BTC each to play.
I pick one random winner and pay out 1 BTC and keep .1 BTC

Is this considered gambling and is it legal or illegal in USA?

So, 90% of people should pay you to lose in other words?
Or what if you or some of your buddies is the "winner"?

Wake up. That's robbing.

I agree with the robbing part! the idea is pretty ridiculous in itself!!

[Reynaldo]

I've made this kind of game, still finishing the design, i hope you'll enjoy it as soon as i release it with my partner

[zetaray]

The game play is irrelevant. If it is gambling, it is illegal if you do not have a licence. Unless you host it in a country where online gambling do not need a licence, keep all the funds separate and hidden, you might be able to get away with it, but still illegal.

[NUFCrichard]

I agree that you need a licence to run a gambling site.
There are probably ways around it, like have 10 people donate money with one getting a 9x money back special, but it's still dodgy

[ndnh]

Question is about licensing and legality and half the people here talk about the raffle he is thinking of providing.

Well, I admit, the part is boring. especially with the 10% edge. Legality depends on country. And you need a license.

[Criterion]

Question is about licensing and legality and half the people here talk about the raffle he is thinking of providing.

Well, I admit, the part is boring. especially with the 10% edge. Legality depends on country. And you need a license.

Exactly. Also keep in mind that a license can be somewhat expensive.

[BitCoinNutJob]

I live in USA.
I want to create a Bitcoin gambling website on my domain name WinBitcoins.com

Some simple game like...
11 people send me .1 BTC each to play.
I pick one random winner and pay out 1 BTC and keep .1 BTC

Is this considered gambling and is it legal or illegal in USA?

wouldnt risk stuff like this in the USA, run the website from outside the US if needed.

[Tschai]

Question is about licensing and legality and half the people here talk about the raffle he is thinking of providing.

Well, I admit, the part is boring. especially with the 10% edge. Legality depends on country. And you need a license.

Exactly. Also keep in mind that a license can be somewhat expensive.

Approx 40K/50K euros in the Netherlands...!!!!!!

[ComboChris]

Question is about licensing and legality and half the people here talk about the raffle he is thinking of providing.

Well, I admit, the part is boring. especially with the 10% edge. Legality depends on country. And you need a license.

Exactly. Also keep in mind that a license can be somewhat expensive.

Also you shouldn't underestimate the time and cost it would take to make a company, since you would most certainly need a company if you wanna handle reasonable amounts of cash. Additionally you will probably have to pay higher taxes than usually since most countrys have an additional gambling tax. That's also the reason, why most bitcoin gambling sites simply choose the easy and illegal path.

[brownboy]

no law against bitcoins gambling but still it said to illegal....