I’m interested in using Intrade with some fun money, but I’m very confused about its legality, and the state of internet gambling laws in general. I live in California, if it’s important.
First, is Intrade legal for users in the US? It seems like it’s functionally the same as sports betting, which as far as I know is illegal when not on the internet. The fact that Intrade is incorporated in Ireland but denominated in USD makes me suspcious that they’re exploiting some loophole in the law, or just trying to make their assets inconvenient to seize.
I know that, a little while ago, the law that was passed regarding internet gambling had something to do with banks and transferring money. Intrade takes Visa and Mastercard, which certainly makes it appear to not be affected by that law.
I have a feeling the answer is fairly murky, but any clarification you can offer is greatly appreciated.
Here’s the last thread on online poker specifically and online gambling in general, including links to a number of other articles. AFAIK there’s been no changes since that thread regarding online gambling from the US.
As long as Intrade isn’t offering wagers on the results of “sporting events or contests” it doesn’t appear to violate the plain text of the Wire Act. No idea on California law specifically. IANAL, YMMV, etc.
Off topic, but if you are interested in sports-betting-as-stocks (which is just one part of the InTrade site), www.protrade.com is a free and legal site for that.
In November 2012, the Commodity Futures Trading Commission, “…filed a civil complaint accusing the company of offering the contracts outside traditional exchanges and without regulatory approval.” Intrade then closed its website to US investors.