I’ve been reading about a number of online poker sites who operate legally or seemingly legally in the United States because they’re taking advantage of some legal loopholes.  The problem with legal loopholes is that sometimes someone pulls the thread at either end and they can collapse. Or get caught in endless court battles.

Betcha.com is one if the sites in a legal battle. Betcha.com came up with a unique approach to online poker to get around Washington State’s gambling law. Since Washington statutes define gambling as a situation where a person risks something of value on the agreement that they will receive something of value, Betcha.com did away with that agreement.  Players were advised when they joined the site that there was no agreement for losers to pay up on their losses.  Players gained reputation points based on whether or not the paid up but any monetary arrangement was directly between players.  Whether or not that keeps the site from violating state law is still being debated, but keep in mind that Washington State is particularly tough when it comes to online gambling laws.

Other sites, such as Pure Play in San Francisco and Triple Jack in Florida are trying a different approach. Instead of advertising themselves as a gambling site, they charge a monthly membership fee then offer tournaments with cash prizes for the winner.   So far these sites haven’t been challenged in court, but in may be more a matter of the states they operate in than a strong legal standing.  I could say it would take a lawyer to determine the legal issues, but the law isn’t always that simple. Most sites like Betcha.com consult a lawyer before setting up operation. It’s just the smart thing to do.  But most lawyers will tell you that almost any interpretation of the law can be challenged.  That doesn’t mean the challenger will win, but it can tie a site up in legal battles long enough to deplete any resources it might have.

So, if you hear about sites like these, while they may sound as if they’ve found a legal way around the gambling laws, most haven’t been challenged or proven their stance.  They could be right or they could be shut down tomorrow.  Don’t pay that membership fee too far in advance.