Jeffrey Trauman of Harwood, North Dakota plead guilty on August 11, 2003 to a misdemeanor offense of online gambling and became the first player to be prosecuted for online gambling in the United States. In North Dakota, gambling is illegal unless it is in a tribal casino or for sanctioned charities. Any bet over $25 is an infraction and any bet over $500 is a misdemeanor.
Trauman, who had quit his job as a car salesman to become a professional gambler, was apparently unaware of this law and reported his gambling income on his tax returns. The Court ordered Trauman to pay a $500 administrative fee and handed out a deferred imposition of sentence, which puts Trauman on unsupervised probation.
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