Legally binding stake deal - possible?

[DCWGaming]

Just curious if this is possible.

Seems like it could be, I figure you could write a contract for anything... But I dont know how a gambling stake contract would hold up in court, if things were to go that far.

thx,
Dan

can't you just write it up as an all purpose loan?

[Rasputin]

You can't make a legally binding contract for an illegal activity so unless poker is clearly legal in your jurisdiction then the contract will be murky.

[Copernicus]

And since youve posted this in the internet forum you would certainly have little protection for an online tourney, since even if anyone were interested in helping you enforce it, the jurisdiction would be unlcear at best, and illegal at worst. (The feds still say online gambling is illegal. Notice the switch in advertising from real money dot.com sites to play money dot.net sites. That has to be in response to pressure to not advertise illegal sites.)

[Recliner]

[ QUOTE ]
You can't make a legally binding contract for an illegal activity so unless poker is clearly legal in your jurisdiction then the contract will be murky.

[/ QUOTE ]

I also learned in my business law I class that I just finished, (I know, I know, some expert I am) that contracts that involve a bet or wager or gambling are unenforceable.

[Nalapoint1]

"Guido" has no problem enforcing any contract. You just have to know where to find him.

[FlFishOn]

Ask Guido, the guy that sells policy. He know how you get paid on gambling debts.

[Maddenboy]

A contract can be valid, and legally binding, for gambling debts or other illegal activities.

The problem, as someone mentioned, is that it will NOT be enforceable.

But its pretty much a distinction without a difference. Its only valid under the technical definition of a contract (offer, acceptance, consideration, capacity to contract).

As to jurisdiction, it would NOT be unclear. It would be where the contract was entered into. maybe New York or California or wherever the parties are. You can also specify in a contract what jurisdiction's rules are to be used in interpreting and enforcing the contract.

So . . . find a jurisdiction where gambling contracts are enforceable, specify in the contract that the laws of "X" apply to this contract for all purposes, have both parties submit to the jurisdiction of "X," and you are fine.

2 problems. First, i dont know where gambling contracts are legal. maybe Monaco. Second, it had better be someplace where you wont mind traveling to in order to sue the bastard (or maybe just hiring a lawyer there).

-Maddenboy, esq.
Licensed in California and Illinois.

[fnurt]

This is not quite right. If there is no actual connection to the jurisdiction, a court is not going to hear the case just because the parties attempted to stipulate to jurisdiction. Two guys in New York cannot make a contract that says, "If you want to sue to enforce this contract, you have to sue in Hawaii." The courts of Hawaii will have nothing to do with the case.

[Maddenboy]

I disagree, but dont want to beat it to death.

First, you can always have your contract subject to the laws of any jurisdiction you like.

Second, the jurisdiction in question may, or may not get involved. Many jurisdictions (I say many without having researched same) take a great interest in interpreting their laws, for uniformity. Alternately, you can have your own jurisdiction construe your contract according to the foreign jurisdiction's laws.

This happens all the time. I dont think it becomes at all exotic because gambling is involved.

But i/we digress. Most people arent going to sue on a gambling contract unless big money is involved anyway.

Which reminds me; you may want to provide in your contract that the losing party (with "losing" well defined) pays the winning party's attorney's fees, so you dont spend $80,000 in attorney's fees to collect a $30K debt.