Do any of you lawyers/prospective lawyers have any extensive knowledge of US gambling law? Basically I'm trying to figure out what specifically defines something as gambling.. I'm trying to see if I can create something, but I'm not sure of the legal questions that may arise. I've found multiple definitions online, but I'm not sure what is or would hold up in court. Maybe you have some ideas or suggestions on where I can look, if not an answer or 2? Thanks guys!
I live in Virginia.. but I was thinking of starting something online. I know sometimes people think they have to operate offshore, and I'm not sure what defines that case either (when that is necessary). I assume if it's illegal in the US due to gambling restrictions, then it can be semi-legal operating offshore.. but I would prefer to do something that is legal enough to operate within the US if at all possible.
FYI, the SAFE Port Act introduced a measure that makes it illegal for a financial institution to transfer funds to an online gambling site. Don't know if you knew that or not. It was passed only a few years ago. It basically makes it extremely hard to fund your online gambling account if you live in the U.S.
When I worked in radio promotions we had to make sure that any contest we did wasn't a lottery (which would be gambling). The three elements we had to look for were "Prize", "Chance" and "Consideration". If you had to pay something (anything, could be money, donation of food, a toll phone call) for a chance to win a prize it was a lottery and we couldn't do it. So, for example, you couldn't do a contest where a listener donated a can of food to get their name in a hat for a chance to win concert tickets. What we COULD do was have people come by a promotion with a can of food for the opportunity to shoot a three point basket and if you made it you got some sort of prize. By making the listener make a basket you took "chance" out of equation and replaced it with "skill". Go figure. Now from what I remember (cause this was YEARS ago) this had everything to do with talking about the contest on the radio. In other words, if it was a lottery we couldn't talk about it. I don't believe they (corporate) had a problem with us doing lotteries at promotions as long as we didn't talk about it online. I don't know if that was because it was legal to do the lottery or if they just didn't care because off-the-air stuff didn't jeopardize the FCC license.
If you're looking at an online gambling scenario...or something similar, you might want to check with the centsports.com crew. They might be able to help...as long as you would not be competing against their product. They seemed to have found the fine line between gambling and entertainment.
also try out www.oneseason.com they have also seemed to make sure they havent crossed the line of "gambling" as well. they are based in california, they respond very quickly to emails.
Thanks for the info chase.. that is helpful. That is somewhat in line with where I'm looking.. mrdave, I was actually planning on contacting them, but wanted to look at the bbs (and talk to friends) first if possible. Good idea to talk to centsports also. Thanks to all, and if anyone has more info (similar to where chase was looking I guess, except in an online space), I'd appreciate it. Franchise, I do know about that... and that's one of the many reasons I want to aim for this to not be considered "gambling".
A place in my town (Victoria) just got busted a couple of weeks ago. They were selling phone cards, and the phone cards were used to run slot machines of some sort. The theory the joint was operating under was that they were operating a "sweepstakes" and that somehow you could enter for free as well. Pulling the lever on the slot machine supposedly only determined in the game if your entry was a "winner" or "loser". They were giving away cash though, so the police department shut them down. Other places in town have similar, 8-liner style machines, but they give away soap and other household items under 5 dollars each.
