Online Pools

I am considering trying to develop an online sports pool. I am wondering about the legalities of this. I've read some articles about some people running sport books online getting jail time (since running books is illegal).

The pool doesnt payout on odds, so I'm taking 'bets' (i dont think)so Im thinking that maybe this falls into another category?

(Ie, everyone pays $5 to enter, and winner takes the pot)

Anyone have any information in regards to this?

stacker

i just saw an article the other day about march madness bets and pools. Some lawyer went on to say that office betting between coworkers is legal because it is private and not open to the public. All other gambling here is illegal. So I would think that online pooling would automatically be illegal since it would be available to the general public.

Maybe within that lays a solution. Sell 'private' memberships and only members can bet. Then you have private wagering.

A small city near me does something similar with alcohol. The city is in a county where sale of liquor is prohibitied. So all the restaurants and bars give away 'private' memberships and therefore bypass the county laws. Of course the membership is a joke and is only used for drinking.