What is considered Online Gambling..?

Question

I have an entertainment sportsbook betting website where members can place wagers for fun on certain sports to accumulate points (if they win). If they lost all their points, they can earn more points by playing on our sponsor sites which is a real money betting sportsbooks site. For every dollar they lost on our sponsor site they'll gain 10pts on our site to play. Now is that considered illegal under the IOGA (Internet Online Gambling Act) considering that members can exchanged the points for real cash....?

Answer 1

On the surface it looks like the wagering is on your sponsor sites and is your sponsor's legal problem... but you should check with a lawyer...

Note, the Department of Justice has been quite liberal in interpreting the anti-gambling laws, even hitting Google and Yahoo up for running gambling ads.

Answer 2

Online gambling in my eyes when people part with money in the chance to win more money online.  Using and redeeming points to make money is skill gaming.  However this rule is difficult to inteprete and the best thing to say whereever someone deposits money online in the sole purpose to win money online then that is online gambling.

Are you referring to the 'unlawful internet gambling enforcement act'?