offshore online gambling - legal?

gala

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Sep 9, 2002
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So it's pretty clear to me that under Canadian law it is illegal to set up or operate an offshore online gambling service to people living in Canada. Canadian law may not be able to reach you; but it seems to be illegal.

My question is, what about Canadians accessing these sites? Just because the site has committed a crime by offering the service doesn't automatically mean people who use it are also committing any crime.

I thought I'd ask here because the relevant section of the criminal code is the same one that makes incalls, living off the avails, procuring, etc., criminal in Canada, for reference it's here:

http://laws.justice.gc.ca/en/c-46/42271.html

The troublesome section might be section 206, in particular (b), "sells, barters, exchanges or otherwise disposes of, or causes or procures, or aids or assists in, the sale, barter, exchange or other disposal of, or offers for sale, barter or exchange, any lot, card, ticket or other means or device for advancing, lending, giving, selling or otherwise disposing of any property by lots, tickets or any mode of chance whatever" or perhaps (c) or (e).

However I'm not a lawyer and I don't know, and I haven't been able to find a judgement or a legal reasoning of the matter that would clarify the issue.

I'm wondering in particular about sites like http://TradeSports.com which don't claim to be making a book, but which essentially are set up as a futures market. However, the definition of "bet" in the Canadian criminal code makes it pretty clear that these "event futures" would be covered (right at the top of the link above).

On the other hand, what if you restricted yourself on TradesSports.com to just those contracts that relate to a stock market--for example, their E-Tiny futures for the US stock market S&P 500. How can that be illegal, when the same product is legally offered to Canadians by exchanges? The criminal code doesn't seem to have any exemption that says "except for commodities, derivatives, and futures markets" which makes me think somehow the gambling laws are construed not to apply to futures.

Food for thought? TradeSports.com had some pretty fun bets you could make during the 2004 election--you could bet for or against Bush and walk away with a pile of money if you got it right. Now they've got bets on when Osama will be captured, who will be the Republican and Democrat presidential nominees in 2008, as well as a series on currency, commodities, stock markets, and of course an array of sports betting contracts.

Anyone have any thoughts? Links to relevant material? Any lawyers got an answer? If I threw a few hundred bucks into something like TradeSports, can I be convicted of a crime?
 

gala

New member
Sep 9, 2002
318
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So if it were legal... one nice thing about Canadian law is that gambling income is tax free... so this would provide you with a way to invest money in the S&P 500... tax free.
 
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