Originally Posted by TheDrew
I was asked a question re: online gambling that I think one of you might be able to answer.
Can a company like Pokerstars park its code/DB in the United States if it is not serving US customers? Or, more generally, do international gambling websites use American servers? Ie. Licensed in Malta, Isle of Man, Alderney etc.
The only information I found was:
excluded from the coverage of "unlawful Internet gambling" are
waypoints along the World Wide Web that are only incidental to the places where the electronic transmission of the bet or wager is initiated and finally received.
I find the ambiguity in all of these laws to be frustrating and I hope that all American players get online again very soon.
That's such a left-field question since the only reason a company would subject itself the a US State's regulation and US taxes would be access to US customers.
But hypothetically, if say Nevada wanted to position itself as the new 'gold standard' IOM type regulator for international online gambling, they would need to get White listed to take UK customers, and they would need to reach a compact with the EU.
Since they wouldn't be in violation of State law and didn't offer sports betting, none of the existing Federal laws could be used to stop them, but Congress would likely pass new legislation to block them.
I've suggested in the past that simply pulling the trigger on accepting interstate or international customers might be the best strategy to force the federal government's hand to exercise their Commerce Clause authority over internet gambling, but they will probably save that as a nuclear option when/if California or another large population State were ever to pass an intrastate online gaming bill.