New online sportsbook is legal in the U.S.
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A new online gambling business based in the United States called Centsports.com is operating within the law by giving its customers money to gamble with.
The site works like this: CentSports gives members ten cents of “play money” to gamble with on just about any sporting event. Members can accumulate money if they win their wagers, and once they get to $20, they can cash out their balance, trading the play money for real money. Cash out is not as easy as just clicking a button on the site, but it is possible to earn real money from nothing.
If members lose, they’re given another ten cents of “play money.”
Here’s why the site can be considered to operate within the law, according to a story at Forbes.com:
Three elements have to be present to violate most state gambling laws–namely “prize, chance and consideration,” says attorney Chuck Humphrey, a gaming-law specialist and author of the Gambling Law U.S. blog. Because Centsports.com doesn’t allow users to bet their own stash, no “consideration” is involved, and thus all is kosher. Quips founder Victor Palmer: “Congress assumes if you’re dumb enough to give away money, then go for it.”
The site profits mostly on advertising, Skype, Pizza Hut and the NBA have all signed on, according to the Forbes article.
