The US market’s gaming industry has embraced technology and continually presents new game formats providing more entertainment and greater access as US regulatory structures play catch up.
Entertainment markets attract US disposable income and gaming entertainment garners its share. Gzesh Law brings a grounded approach to helping emerging gaming and skill gaming clients avoid pitfalls associated with getting labelled as unlicensed “gambling” under State or Federal regulatory approaches.
US gambling laws generally cover offering customers an opportunity to risk something to play games of chance or bet on something to win real money. “Gambling” law resides generally at the State or tribal level, save for some Federal prohibitions on certain activities like operating sports-betting, live or online.
Gzesh Law’s practice has focused on US gaming and gambling law for over 25 years, from serving as legal counsel to Nevada gambling license holders and social gaming and skill game providers to furnishing consulting services regarding US markets to a variety of Internationally-based companies seeking to understand our rules.
-iGambling services flow across borders, in theory has been subject to International trade agreements and local regulation.
Some notable igambling jurisdictions license operations beyond their own borders, offering a regulatory framework sufficient to provide a level of comfort to banking and payment processors to conduct business with igaming operators. Basically, such licenses, and payment processing, allow operators to access those markets and jurisdictions which permit igaming to conduct business with little or no specific regulatory oversight.
Gambling operators serving cross-border customers in other markets may face regulation at the national level in many jurisdictions, varying from marketing and advertising restrictions to requirements for a national license, payment processing restrictions, national taxation and server co-location within their borders.
Gzesh Law is investigating the rights of BFX Token holders and will post information here as it becomes public. GzeshLaw is providing such information as a public service and not as legal advice.
Requirements for BFX Token Transfers
Tokens have been issued in connection with certain property that was stolen from iFinex Inc. ("iFinex") and from BFXNA Inc. (collectively, the "Bitfinex Group) on August 2, 2016 (the "Losses"). You can read more about the tokens here. A token may be transferred only on notice to, and with the prior consent of, the Bitfinex Group. The Bitfinex Group has determined that a token may be transferred on the following terms with prior notice to the Bitfinex Group:
A U.S. person may only transfer the token to another iFinex customer, but may not purchase tokens.
A customer who is not a U.S. person may purchase and transfer tokens without restriction if, in connection with each trade, the customer verifies to the Bitfinex Group’s satisfaction that the customer is not a U.S. person.
To transfer a token to another person, a transferor must assign to the transferee any claims that the transferor has against the Bitfinex Group on account of the Losses.
By transferring a token to another person, all transferors thereby assign to the respective transferees any claims that the transferor has against the Bitfinex Group on account of the Losses.
If engaged to do so, Gzesh Law can provide legal services to crypto-currency clients, including disputes or resolution of claims, assignment of claims, and, to the extent trading of BFX becomes available, to traders of BFX Tokens or the required assignment of claims related thereto.
Gzesh Law has been active since 2012 in its blockchain/bitcoin gaming legal practice, has represented clients with cross-border operations reaching into markets throughout the Americas, Europe, Africa and Asia, and has helped clients adapt to changing regulatory opportunities and challenges.
As early as 2012, gambling-related activity drove bitcoin blockchain transactions. One “dice gambling” operation alone accounted for over ½ of all blockchain transactions, adapting its operation entirely to the new cross-border technology. In 2014, an ethereum blockchain technology launched, specifically outlining adaption of smart contracts to gambling and betting applications. As this industry evolves, a world wide gambling and betting market mechanism is again developing. In 2016 and beyond cross-border gambling faces this ongoing disruptive wave as blockchain technology will increasingly drive both processing payments and gaming operations themselves.
Gzesh Law advises both start-up emerging operators and established industry players as to what the applicable law is, what challenges and opportunities may be ahead, and practical considerations on how to evolve their businesses and comply with both igaming and ancillary regulations, including anti-money laundering and payments regulations.