What Is the USEA?

The Uniform Fairness Act or UFA is in place to protect against discrimination on the basis of race, nationality or age. As it stands now in the United States, UFA covers betting from non-American customers as well as customers of the European Union. Although sports betting is legal in the United States, UFA prohibits individuals from placing wagers on sports where they are subject to the jurisdiction of the game in which they are participating. In the European Union, this extends to betting on sports events that take place outside of the member’s country. There are many sports that are covered by UFA and some of the more popular sports are soccer, basketball, cricket and horse racing.


The problem with this law is that it makes sportbooks illegal. The United States Justice Department considers sportbooks gambling venues and therefore is subject to all the same laws and regulations. Many state prosecutors have claimed that sportbooks have encouraged their clients to bet illegally, thus allowing the sportbooks to be shut down by states. This is a troubling trend, especially since state governments and the U.S. Department of Justice have been making aggressive moves to crack down on illegal gambling. The UFA makes it illegal to operate in any way that encourages or makes it possible for gambling to take place. This includes placing bets or conducting transactions on sports events.

Although there are many sportbooks that operate legitimately and offer reliable services, there are others that are not so innocent. The UFA makes it illegal for them to accept deposits or pay for results or to disguise the nature of the bets made on sporting events. This makes the practice of placing bets on sports, basketball, baseball, soccer and other events difficult. In order for a sportbook to remain legal and operating in the United States, they must follow all of the regulations set forth by the UFA. This includes not participating in transactions or accepting deposits that would violate the law.

Since illegal sportbooks have caused so much headache for law abiding citizens, some states and cities have placed taxes on sports books. This has made sports betting more expensive for illegal bookies, thereby reducing the number of individuals who partake in the activity. It is important to remember that the UFA doesn’t target legitimate sportbooks per se. Rather, the UEA targets publishers and knowingly violates their regulations in an effort to force closure. For example, if a publication is selling sports picks which turn out to be incorrect then they must publish a disclaimer acknowledging this. Likewise, they must also inform their patrons that they accept responsibility for their actions.

Despite being illegal in some cases, online sportbooks can benefit from being recognized and allowed to participate in revenue sharing programs. This can help to maintain a strong and respectable online reputation, which is critical to long term success. By participating in revenue sharing programs, sportbooks can ensure that a portion of each bet they make is given back to customers, which in turn creates long term revenue for the sportbook. Unfortunately, in some cases the IRS has threatened to block these tax-free activities, which is what’s commonly referred to as a “divergence” IRS position.

Despite these issues, UEA still provides a number of legal ways for sportbooks to conduct their business and still work within the law. UEA covers all forms of gambling, including sports betting and horse race betting. In fact, the Internal Revenue Code actually states that gambling is treated as income for tax purposes if it is part of an event sponsored by an organization. As long as all wagering activity is held in an honest and legal manner, it will be perfectly legal. This means that sports books can engage in sports betting without having to worry about breaking any laws and, therefore, enjoy complete freedom in their decision making process.