Is a Pay Per Head Service Legal?

You've seen them all over Google: Ads for Pay Per Head sites.

These are sponsored ads and their mere sighting helps to answer the question: Are Pay Per Heads legal?

The answer is a resounding YES.

Pay Per Heads charge a small weekly fee per customer and in return the bookie and/or agent gets a customized website for his or her players, 24/7 customer service, full reporting, odds and line movements from the experts, prop building (extremely popular with players these days) and even a live dealer casino and race book. 

Google Ads only accepts businesses they determine to be legal. Advertisers must comply with the local laws and regulations of any area their ads target.  A Pay Per Head service is really no different than one of those call centers American Express uses. 

It's still critical to consult with a local attorney prior to setting up your Pay Per Head bookie business.

From AcePerHead:

"The legality of pay per head will obviously depend on where you are located. So the first thing you will need to do is check with your local attorney to see if booking action and using a pay per head service is something that is legal in your specific area. Especially in the United States with a lot of recent laws changing in regards to the gambling business, it is important to find out the specific laws in your state to make sure you are doing everything by the book."

The Pay Per Head service provider will typically operate in places like Costa Rica, where these types of call center and internet provider services are legal and licensed.

"In the United States, a lot has changed over the last couple of years in terms of the legality of bookies. The United States has allowed each state to determine whether or not they want to allow gambling and bookies. As a result, many states have already decided to allow gambling, and other states are in talks to follow suit and allow it as well."

Regardless of the legal status in your location there are some definite "do nots" when operating your online sportsbook.

• Do not associate with individuals or groups who could place your business as risk.
• Do not avoid paying your taxes.
• Do not take phone bets across state lines.

It's interesting to note that when Florida began permitting the Seminoles to operate their mobile sportsbook, it was determined that the bets are placed on the server that is housed on tribal land.  In the case of Pay Per Head operators like AcePerHead, bets are placed on servers located in Costa Rica where the activity is legal.

- Aaron Goldstein, Gambling911.com