What makes a PPH (Pay Per Head) service illegal?

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  • jpveltri
    SBR Rookie
    • 07-08-12
    • 12

    #1
    What makes a PPH (Pay Per Head) service illegal?
    I'm trying to specifically find out what makes a PPH service illegal. For those of you that don't know what a PPH service is, it is the website local bookies use to process bets. By no means do these websites actually accept any wagers, they are basically just a clerk or accounting service for the bookies. These websites are basically all located offshore or in Costa Rica and make their money by the bookie paying usually $10 per client, per week.

    The reason I am asking this is because I have a business idea and I need to specifically know what exactly is illegal about this service. Thank you.
  • sweep
    SBR Posting Legend
    • 10-09-10
    • 16753

    #2
    You live in the U.S. guy?
    Comment
    • jpveltri
      SBR Rookie
      • 07-08-12
      • 12

      #3
      Yes. What is illegal about it in the US?
      Comment
      • sweep
        SBR Posting Legend
        • 10-09-10
        • 16753

        #4
        <!-- title / author block -->Pay Per Head Sites- Legal?

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        • LVHerbie
          SBR Hall of Famer
          • 09-15-05
          • 6344

          #5
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          • InsiderHer
            SBR Sharp
            • 12-18-12
            • 330

            #6
            Booking is illegal, while using a PPH site is not illegal. The act of booking is what gets you in trouble not the act of using a PPH company. PPH is an accounting service.
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            • jpveltri
              SBR Rookie
              • 07-08-12
              • 12

              #7
              Than why are all these PPH companies not in the US? You're saying it's completely 100% legal to open a PPH service....C'mon. I'm shocked no one on this forum really knows.
              Comment
              • TheStandard.ag
                SBR Rookie
                • 02-01-13
                • 24

                #8
                It is certainly grey area, but most PPH sites sit outside of the real problem areas. The main issue that is certainly illegal is the taking of bets from US citizens, a PPH site doesn't handle any bets from anyone, they merely license the software to local agents for a set weekly fee. It is up to a local agent to handle any money and determine what is legal or illegal in their jurisdiction.

                The Wired article referenced above doesn't really apply here since that is a case where the software developer is being prosecuted, though if you read the article it doesn't sound like there is much of a case. Prosecuting a software developer opens pandoras box to any industry that has software being used for illegal purposes. I'm sure something illegal is being done through Google right now, is Google liable for that? Most PPH providers license the software and are not the developers themselves.
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                • InsiderHer
                  SBR Sharp
                  • 12-18-12
                  • 330

                  #9
                  Originally posted by jpveltri
                  Than why are all these PPH companies not in the US? You're saying it's completely 100% legal to open a PPH service....C'mon. I'm shocked no one on this forum really knows.
                  you're fishing here jpveltri. So, I could only surmise the real question goes something like this. I'm thinking about opening up my own pph company, is that legal?
                  Comment
                  • jpveltri
                    SBR Rookie
                    • 07-08-12
                    • 12

                    #10
                    not at all InsiderHer. I do have a business idea, but it is not a PPH service. My business idea is related to it though and I just really need to know what specific action deems a PPH service illegal.

                    I just don't understand because you have companies like WagerMinds and these Facebook games where you can bet on sports with play money. Are these technically illegal? Is the $10 a week that the bookie pays the PPH service the illegal part?
                    Comment
                    • mrjambo
                      SBR Rookie
                      • 07-26-12
                      • 13

                      #11
                      yeah, I was wondering the same--I found these people very reliable BookmakingSoftware .com
                      Comment
                      • InTheDrink
                        SBR Posting Legend
                        • 11-23-09
                        • 23983

                        #12
                        Originally posted by jpveltri
                        not at all InsiderHer. I do have a business idea, but it is not a PPH service. My business idea is related to it though and I just really need to know what specific action deems a PPH service illegal.

                        I just don't understand because you have companies like WagerMinds and these Facebook games where you can bet on sports with play money. Are these technically illegal? Is the $10 a week that the bookie pays the PPH service the illegal part?
                        i can get you set up for $8 a week jvepeltierp gueye
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                        • playersonly69
                          SBR Posting Legend
                          • 01-04-08
                          • 12827

                          #13
                          The main problem is the evasion of taxes
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                          • 8ArIvd5
                            SBR MVP
                            • 04-24-10
                            • 3175

                            #14
                            I didn't shoot him. I drove my cousin to his house, called him outside, then watched it happen.
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                            • Epope3LV
                              SBR Rookie
                              • 02-15-13
                              • 19

                              #15
                              The act of booking a wager across state lines or booking a wager in states where gaming is illegal is illegal.

                              That's like owning a company that helps people transfer files back and forth. If you know someone is distributing child porn in your state or across state lines than you are aiding that person in the commission of a crime.

                              Now having a PPH site that's registered in Nevada with someone else who has a gaming license is legal.
                              Comment
                              • jpb383
                                SBR High Roller
                                • 06-14-10
                                • 242

                                #16
                                Because the bets are being made through you service you're liable. Additionally most serious bookies only use PPH services which they generally have a stake in or a prior relationship with. It's very difficult to "break into" the PPH industry.
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                                • Fishhead
                                  SBR Aristocracy
                                  • 08-11-05
                                  • 40179

                                  #17
                                  Originally posted by playersonly69
                                  The main problem is the evasion of taxes
                                  Comment
                                  • touchback
                                    SBR MVP
                                    • 02-08-12
                                    • 1227

                                    #18
                                    Originally posted by Fishhead

                                    I could write enough on this subject to fill a websters... but not gonna f·ckn touch this frickn thread... foged boud ed. But Fish, you know your sh1t... why dont you teach these pups a thing or two or a thousand...
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