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Legality of Promotion
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Mac Elite
Join Date: Jan 2004
Location: Berkeley, CA
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I know someone who wants to have a promotion on his website. He wants his visitors to be able to donate $1, for a chance to win a jackpot. The details of why he wants this are confusing, but is this legal? It is obviously gambling...What are the rules of internet gambling? He's 20: Is that an issue?
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"Give me a lever long enough and a fulcrum on which to place it, and I shall move the world." -Archimedes
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Mac Elite
Join Date: Sep 2001
Location: the intarweb
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i think that as regards his website content, your friend would be governed by the laws of the country in which the site is hosted. anyone visiting the site and playing his "lottery" would be governed by the laws of the country from which they were accessing the site.
</barrack room lawyer>
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Clinically Insane
Join Date: Jul 2005
Location: Vacation.
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Originally Posted by m a d r a
i think that as regards his website content, your friend would be governed by the laws of the country in which the site is hosted.
Correct.
Originally Posted by m a d r a
anyone visiting the site and playing his "lottery" would be governed by the laws of the country from which they were accessing the site.
I don't believe so. AFAIK, web transactions legally take place in the country in which the server is hosted - it's essentially identical to if you'd gone on holiday and purchased a lotto ticket while you were there.
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Been inclined to wander... off the beaten track.
That's where there's thunder... and the wind shouts back.
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Mac Elite
Join Date: Jan 2004
Location: Berkeley, CA
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Offline
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So if he designs his site in the US, but gets a host in another country, he's free to do this? Well, actually, is this illegal in the US?
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"Give me a lever long enough and a fulcrum on which to place it, and I shall move the world." -Archimedes
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Clinically Insane
Join Date: Jun 2001
Location: planning a comeback !
Status:
Online
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Originally Posted by tavilach
So if he designs his site in the US, but gets a host in another country, he's free to do this? Well, actually, is this illegal in the US?
Yes and no, AFAIK, there is a big debate about gambling sites on the Bahamas, and whether it is legal for US citizens to use them. I think most credit card companies were forced to disallow transactions for this.
-t
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Clinically Insane
Join Date: Jul 2005
Location: Vacation.
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Originally Posted by tavilach
So if he designs his site in the US, but gets a host in another country, he's free to do this?
It's not quite as simple as that. He needs a footprint (i.e. business presence, an office) in the country where he's hosting it.
Originally Posted by tavilach
Well, actually, is this illegal in the US?
No idea. I assume so.
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Been inclined to wander... off the beaten track.
That's where there's thunder... and the wind shouts back.
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Mac Elite
Join Date: Jan 2004
Location: Berkeley, CA
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So much for his promotion :-\.
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"Give me a lever long enough and a fulcrum on which to place it, and I shall move the world." -Archimedes
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Addicted to MacNN
Join Date: May 2001
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You need to look at sweepstakes and lottery laws of each state the lottery takes place. It state has it's own rules and law. Your promo might be legal in one state, but not another.
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Bush Tax Cuts == Job Killer
June 2001: 132,047,000 employed
June 2003: 129,839,000 employed
2.21 million jobs were LOST after 2 years of Bush Tax Cuts.
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Mac Elite
Join Date: Mar 2003
Status:
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is this really gambling, or is this more like a raffle ticket? people donate for a good cause and then someone ends up getting something in the end, but no one donates for the sake of winning. sure everyone would like to win, but it's not something you do because you want to win. last i knew raffle tickets could be sold by 5 year olds in america. i know i sold a bunch of them for school when i was younger.
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Banned
Join Date: Oct 2004
Location: Six feet under and diggin' it.
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Tell him to make up some sad story like his dog died...blah...blah...blah and cyberbeg.
Set up a paypal account on the site.
That's legal and it works.
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Mac Elite
Join Date: Sep 2001
Location: the intarweb
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Originally Posted by Doofy
..... AFAIK, web transactions legally take place in the country in which the server is hosted - it's essentially identical to if you'd gone on holiday and purchased a lotto ticket while you were there.
it's slightly different, because playing online you're not physically leaving your own country, even if the 'lotto' is being served from abroad- so local laws would apply to you. go on any gambling website and you'll see a disclaimer on any bet you try and place, advising you to make sure that your own local laws allow you to gamble.
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Clinically Insane
Join Date: Jul 2005
Location: Vacation.
Status:
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Originally Posted by m a d r a
it's slightly different, because playing online you're not physically leaving your own country, even if the 'lotto' is being served from abroad- so local laws would apply to you. go on any gambling website and you'll see a disclaimer on any bet you try and place, advising you to make sure that your own local laws allow you to gamble.
I'm not so sure. I have a strange feeling that this disclaimer is there simply to avoid cross-border prosecution from those who would "reach out" to stop their own citizens from gambling.
I'm not arguing. I don't know, you may be right.
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Been inclined to wander... off the beaten track.
That's where there's thunder... and the wind shouts back.
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