Draw - Would this be legal

Discussion in 'Legal Issues' started by Infoscripts, Dec 12, 2006.

  1. #1
    I will have a website where people pay to put their banner and I will make a draw everytime 3 people have added their banners. So first person would pay $1, second $2 and third $3 the draw would be: (1 + 2 + 3) / 2 = $3
    One of those 3 person would win $3. Next three person (4 + 5 + 6) / 2 = $7.50 One of those 3 persons (could be different persons than the first draw) would win $7.50. I would pay them with Paypal. Would that be something legal?
     
    Infoscripts, Dec 12, 2006 IP
  2. Forum9.com

    Forum9.com Peon

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    #2
    it is legal, no doubt in it, i havent seen any legal problem in it,

    why you thinking like that
     
    Forum9.com, Dec 12, 2006 IP
  3. techtutorial

    techtutorial Guest

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    #3
    would it be considered any sort of lottery though.?

    buying an item to win an item?
    sounds like a scratch ticket to me,.?
     
    techtutorial, Dec 12, 2006 IP
  4. iBold

    iBold Peon

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    #4
    Yea, sounds like buying a ticket to me too.
     
    iBold, Dec 12, 2006 IP
  5. tke71709

    tke71709 Peon

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    #5
    Because it's obviously a lottery/game of chance and thus requires special licenses from the gov't perhaps?

    Answers like the above are the reason people should never ask for legal advice from strangers on the Internet.
     
    tke71709, Dec 12, 2006 IP
    mjewel likes this.
  6. Infoscripts

    Infoscripts Peon

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    #6
    Yes I think you're right :)

    Well they buy a banner first and as a bonus I would give them a money back if they win the draw between the 3 people. This will encourage them to buy the banner.
     
    Infoscripts, Dec 12, 2006 IP
  7. Futures_Equity

    Futures_Equity Well-Known Member

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    #7
    hello, this isn't qualified legal advice but i believe if you are in the states it needs to be "no purchase necessary to enter" option, although purchasing can greatly increase your chances.
     
    Futures_Equity, Dec 13, 2006 IP
  8. slipxaway

    slipxaway Active Member

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    #8
    I think the premise is flawed to begin with. People are either going to pay for a banner ad or they wont. People pay for banner ads, because it will give their site exposure, not for some gimmick and a chance to win a few bucks. If your site doesn't have the necessary merit to give that exposure for a price, then don't waste your time. Or if you need a gimmick, just offer every x number of paid ads free... So like "Every 5th ad is free!" or something to that effect. This eliminates any type of random chance and thus no legal worries for running a lottery. After recieving 5 paid ads, just refund the money to the 5th person...
     
    slipxaway, Dec 13, 2006 IP