Horse racing is legal in California but dog racing is not. One of the online wagering sites is racingchannels.com, located in San Jose.
By all means, you are the provider for web-hosting, or a provider of interactive computer services which allow multiple users to access the server.
Your first concern is whether you can contract with the internet service provider (ATT for example), to host that website. Most residential service
providers do not allow commercial website hosting so this remains a question. Second,technology. Not sure what kind of equipment you will need for web hosting. This is beyond this author's knowledge and not the point in this discussion.
Your liability as a host is drastically different than a computer content provider. For the most part, your liability is governed by Communications
Decency Act (CDA). CDA provides a broad immunity to computer service providers such that you are not liable for any claims arising from the content you are hosting. CDA expressly preempts any conflicting state law. The only limitation under CDA is that you are liable for your own speech. Content provider, on the other hand, is the party in whole of in part develops or manages the website. Mere notice that the content might be illegal does not give rise to a service provider liability. However, the line is murkier when you update and
edit the website. You could lose the CDA protection somewhere. For example, if you work directly for your friend, you may be found liable under
Respondeat Superior theory.
Another statute to consider is the Digital Millennium Copyright Act (DMCA). One of the typical problems for website design is copyright infringement. DMCA provides immunity to internet intermediaries for passive ownership and management of an internet facility. A violation of DMCA requires more volitional act and meaningful causation. That being said, you may be found contributory copyright infringement if you edit, update, or otherwise modify the website in anyway that infringe upon other's copyrighted materials.Trademark infringement is another concern.
By all means, you are the provider for web-hosting, or a provider of interactive computer services which allow multiple users to access the server.
Your first concern is whether you can contract with the internet service provider (ATT for example), to host that website. Most residential service
providers do not allow commercial website hosting so this remains a question. Second,technology. Not sure what kind of equipment you will need for web hosting. This is beyond this author's knowledge and not the point in this discussion.
Your liability as a host is drastically different than a computer content provider. For the most part, your liability is governed by Communications
Decency Act (CDA). CDA provides a broad immunity to computer service providers such that you are not liable for any claims arising from the content you are hosting. CDA expressly preempts any conflicting state law. The only limitation under CDA is that you are liable for your own speech. Content provider, on the other hand, is the party in whole of in part develops or manages the website. Mere notice that the content might be illegal does not give rise to a service provider liability. However, the line is murkier when you update and
edit the website. You could lose the CDA protection somewhere. For example, if you work directly for your friend, you may be found liable under
Respondeat Superior theory.
Another statute to consider is the Digital Millennium Copyright Act (DMCA). One of the typical problems for website design is copyright infringement. DMCA provides immunity to internet intermediaries for passive ownership and management of an internet facility. A violation of DMCA requires more volitional act and meaningful causation. That being said, you may be found contributory copyright infringement if you edit, update, or otherwise modify the website in anyway that infringe upon other's copyrighted materials.Trademark infringement is another concern.
Besides these, you will also have problems in terms of security, especially if you store customer data and/or accept payment online.
You will have a duty to update, an obligation to put up a forward-looking statement, among others, imposed by SEC and other government agencies.
You will have a duty to update, an obligation to put up a forward-looking statement, among others, imposed by SEC and other government agencies.
I only have time to touch upon the surface of this issue. There are obvious many more issues including state regulation. There is no
clear cut one way or the other just like most laws are subject to interpretation. One reason is that internet and e-commerce is growing so fast that the legislation cannot keep pace with it. Another reason is that although Congress has the commerce power to regulate all of these but it chose not to due to the concern that too much regulation will impede technology and ecommerce growth. Take internet gambling for example. All states outlaw internet gambling. On top of that there is federal Unlawful Internet Gambling Enforcement Act (UIGEA), which requires credit card providers to report gambling transactions. It may make more sense just shut down the internet gambling website. Technology exists that a state can relocate website customers’ physical locations and improve filter effectiveness to block websites targeting these customers. When a similar bill was debated in the federal level, Congress eventually rejected for the same reason. One last reason is that state laws are different. There are still seven states allowing dog racing. Competing laws make a uniform regulation almost impossible.
Although you could have CDA and DMCA as two primary shields, there are other concerns, such as corporation, taxation, permit and licensing, which are not discussed here due to time limit and the reason they are not the target of this essay.
This is not a legal advice.
clear cut one way or the other just like most laws are subject to interpretation. One reason is that internet and e-commerce is growing so fast that the legislation cannot keep pace with it. Another reason is that although Congress has the commerce power to regulate all of these but it chose not to due to the concern that too much regulation will impede technology and ecommerce growth. Take internet gambling for example. All states outlaw internet gambling. On top of that there is federal Unlawful Internet Gambling Enforcement Act (UIGEA), which requires credit card providers to report gambling transactions. It may make more sense just shut down the internet gambling website. Technology exists that a state can relocate website customers’ physical locations and improve filter effectiveness to block websites targeting these customers. When a similar bill was debated in the federal level, Congress eventually rejected for the same reason. One last reason is that state laws are different. There are still seven states allowing dog racing. Competing laws make a uniform regulation almost impossible.
Although you could have CDA and DMCA as two primary shields, there are other concerns, such as corporation, taxation, permit and licensing, which are not discussed here due to time limit and the reason they are not the target of this essay.
This is not a legal advice.
