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Internet Gaming Tournaments (Monetary Transactions)

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docholiday2006

Junior Member
Texas

I have been delving into the world of online gaming tournaments, and have even decided to create my own tournament website where users can set up their own personal tournaments, or compete in sponsored online tournaments.

My question regards allowing monetary transactions between site users through a third party electronic payment system such as Paypal. My site would take no responsibility for any money won or lost, aside from in sponsored events, and would not manage the personal tournaments users set up in any way other than basic rules as to game play procedures.

My question then is whether or not this is legal under the new federal laws of the US that were recently enacted. Does this constitute illegal gambling, or does it fit under skill-based tournaments and so is exempt from the internet gambling laws?

This will help me greatly as I need to know how to run my tournament system (monetary or play credits with auctions). Thanks.
 



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