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I want to offer a free prize draw - any legal issues

Discussion in 'Legal Issues' started by modeca, May 21, 2010.

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  1. #1
    I want to incentivize customers to sign up to my email list by offering a free prize.

    What legal requirements if any are needed in order not to get into any trouble? I am based in the UK.

    Thanks in advance.
     
    modeca, May 21, 2010 IP
  2. gangsta1

    gangsta1 Peon

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    #2
    I have looked into this when I did a fantasy football website - You must register with the gambling committee unless the competition requires some skill rather than random luck. That was 2 years ago so double check.
     
    gangsta1, May 21, 2010 IP
  3. modeca

    modeca Peon

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    #3
    Thanks for the info. I'll look into this. Do you have a url?
     
    modeca, May 21, 2010 IP
  4. Brian1970

    Brian1970 Notable Member

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    #4
    I don’t think you will have any problems if it’s free for people to enter.

    Thanks Brian
     
    Brian1970, May 21, 2010 IP
  5. attorney jaffe

    attorney jaffe Member

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    #5
    I am confused by your question. In the U.S., if everyone receives a free incentive (and free means free, they don't pay the freight unless it says so conspicuously in the offer) then it is ok. But your question said drawing. If everyone just receives a chance to win a prize in a drawing then you are holding a lottery and all the 50 states have laws against that.
    ______________
    Andrew M. Jaffe
     
    attorney jaffe, May 21, 2010 IP
  6. mjewel

    mjewel Prominent Member

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    #6
    That's not entirely correct. If there is a charge to enter, like selling tickets, then it is a lottery. If anyone can enter to receive a free prize, then it is a Sweepstakes. You can have a drawing for a prize - like Publishers Clearing House. Individual states may have regulations, but if it is entirely free, it isn't automatically illegal.
     
    mjewel, May 21, 2010 IP
  7. modeca

    modeca Peon

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    #7
    Thanks for the input guys, I wonder if anyone out there has any UK specific advice?
     
    modeca, May 27, 2010 IP
  8. jonboy11

    jonboy11 Peon

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    #8
    In the UK we are regulated by the Gambling Commission. If you want to run a FREE fantasy football game and offer cash prizes you can do withOUT needing a license.
    We do that on our site fantasyfa.com
    Joining is free for the epl league we have and winners win cash. But i must stress entry must be FREE. As soon as there is an entry fee or any fee it is gambling (in the uk). Even if you charge for "upgraded accounts" or say you must buy this and then you get entry into our league that would be classed as gambling.

    Otherwise it's straightfoward free entry = not gambling. PM for more details or if you require a professional fantasy game with prizes included
     
    jonboy11, Aug 3, 2010 IP
  9. james_pitt

    james_pitt Peon

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    #9
    Yes, I have to agree with you
     
    james_pitt, Aug 4, 2010 IP