Q: I am looking to take money from outside investors and bet on sports based on an algorithm I created. Is it legal in PA?
There is a law in Nevada that allows this type of business model, however I am located in PA and was wondering if there was a way to make this work from here. I would receive money from investors, and place bets strictly off of my algorithm with no input whatsoever from the investors. I would charge a 2% maintenance fee and a 20% performance fee similar to most hedge fund structures. Is there any way it is possible to set up a business like this in PA?
A:
You need to contact a business attorney as you will need paperwork to cover you in regard to claims from the investors. Anyone can give anyone else money to gamble with--that's not a violation. However you need to have disclaimers and it's not something you'd want to do off the internet.
There are also federal gaming statutes that are implicated, so you really need to get with an attorney to set things up properly.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
