Liability & Legality

**Smudly** · 07-10-2010, 08:21 PM

I need to figure out what kind of laws there would be for websites when it comes to user's spending money for a chance to win credits (these are used to do extra stuff on the website).

For example:
There will be 100 Tickets available for users to purchase at $1 each. Once all 100 are purchased, ten random winners are chosen. These ten winners all win a % of the winnings (total of 5000 credits to be shared). Is something like this going to get me in trouble. Also, does it depend on where I live (Utah, United States)?

If the above is legal and will not get me in trouble, then how about this one below:
Just as above, users can buy a ticket for $1. But instead of them trying to win credits, they can win a % of the total money that was spent on buying the tickets. Would this be fine to do on a website without getting any grief or getting in trouble?

Thanks much!

**moonswamp** · 07-10-2010, 09:56 PM

I don't think so, there are so many egold game sites on the net, just buy and win, they all run very well~~~

**chrishirst** · 07-11-2010, 05:45 AM

Check with a real lawyer, but lotteries are a "game of chance" and therefore subject to gaming laws and require a licence to run such games.

**Attorney Jaffe** · 07-12-2010, 04:26 PM

Lotteries and Games of Chance (gambling games) are regulated in the U.S. by both the Federal and State governments.

Depending on how your games are set up, they may or may not be legal, but they will certainly be subject to regulation. You will need to know the regulations and strictly adhere to them. This could require registration with all 50 states.

It is not easy to run a lottery or a gambling site - it requires a lot of due diligence to know you have complied with all government regulations.

**thefandango** · 08-16-2010, 09:59 AM

In most developed countries lotteries are regulated, so you would need to get some legal advice.