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Casino affiliates & the law

Posted by Michael Bloch in web marketing (Saturday November 11, 2006 )

There’s not only the legal aspect, but given the crackdown on online gambling in the USA, a rather sizeable chunk of the market is now, in theory, not available. Affiliates who are still involved with the promotion of online gambling tend to be *very* good at what they do, so you may find yourself lost among the big boys whom are working a smaller market.

That also raises a point I came across in another article. Presuming that some of the casino affiliates have been unsettled by the The Unlawful Internet Gambling Enforcement Act, they are most likely turning their attention to promoting other non-gambling products and services; and given the skill of these affiliates; we could all be in for a lot more competition.

Read the full text of the The Unlawful Internet Gambling Enforcement Act of 2006

Read Professor Rose’s analysis of the Act.

Learn more about affiliate programs and marketing

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Casino and gambling affiliate programs are well known for high payouts to affiliates for referring players. If you’re based in the USA and are considering joining up with these affiliate programs – you may want to get some legal advice first.

I’ve never been involved with promoting casino and other online gambling destinations, purely for personal reasons, but I received an email a few days ago from a reader wanting to know how to promote his casino affiliate site. I was aware of some changes in gambling law recently and I decided to dig around a little to see what the deal was.

The Unlawful Internet Gambling Enforcement Act of 2006 was signed into law in early October, making it illegal in the USA for a party whose business is betting or wagering to accept money to be used for unlawful internet gambling. Unlawful internet gambling is defined as “means to place, receive, or otherwise knowingly transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State or Tribal lands in which the bet or wager is initiated, received, or otherwise made”

.. wow, quite a mouthful.

The penalties for violating this law are up to five years in prison.

OK, so that sounds pretty straightforward, unless you’re the casino or sportsbook or whatever yourself, or a payment processor that processes payments of behalf of the operator, or the bank housing the account, you’re safe.. right?

Maybe not. I. Nelson Rose – Professor of Law, Whittier Law School has this to say:

“The greatest danger here would seem to be with affiliates. Any American operator can be easily grabbed. This includes sites that don’t directly take bets, but do refer visitors to gaming sites. If the affiliate is paid for those referrals by receiving a share of the money wagered or lost, it would not be difficult to charge the affiliate with violating this law, under the theory of aiding and abetting.”

That statement in my opinion is a big red flag for any affiliate; so if you’re promoting online gambling under an affiliate arrangement or considering it and you’re based in the USA, I do urge you to seek independent, professional legal advice as soon as possible.

There’s not only the legal aspect, but given the crackdown on online gambling in the USA, a rather sizeable chunk of the market is now, in theory, not available. Affiliates who are still involved with the promotion of online gambling tend to be *very* good at what they do, so you may find yourself lost among the big boys whom are working a smaller market.

That also raises a point I came across in another article. Presuming that some of the casino affiliates have been unsettled by the The Unlawful Internet Gambling Enforcement Act, they are most likely turning their attention to promoting other non-gambling products and services; and given the skill of these affiliates; we could all be in for a lot more competition.

Read the full text of the The Unlawful Internet Gambling Enforcement Act of 2006

Read Professor Rose’s analysis of the Act.

Learn more about affiliate programs and marketing



 

 
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