Greetings, I am not even 18 yet, (soon, but not yet) and I can't seem to find any information that I can understand on this subject. So, here is my question: What are the legalities of giving money away for playing games. There are several examples I have here: http://www.exodus3000.com/ - Trades in-game cash for real cash. Requires no money to make money, just lots of time. http://www.pinkyarcade.com/ - Gives prizes JUST for playing games. No money required. So, can I legally run a website in the USA that gives people money for doing certain things (even if it costs nothing to do it)? What would I need to do to avoid any legal trouble? Thanks! -Marcus
Ofcourse whats the difference there and in a real job? All you are trading in return for the money is your time and skill.
Well, I had posted my ideas in other places, and they all said I would have to worry about legal trouble. And I am not sure how I would run into legal trouble and how I can avoid it. I can make money from ads to pay the money out etc.
Interesting question. So many people do it without thinking about repercussions, it's good that you're trying to make sure you do everything by the book. I'm actually visiting a lawyer next week to ask about a similar issue with a web development idea. If you have the money, I'd suggest asking someone that's qualified to answer that. And if you don't have THAT much money, I think there are lawyer websites that can answer simple questions for a few bucks...
I was looking into laws for my state, and their Definition of gambling is anything where people risk something to have a CHANCE of gaining something. Whereas in my case, you wouldn't risk, or give me ANYTHING, but I would give you something. Which seems very legal to me. The next step is to look in-depth into figuring out the possibilities of making enough money from advertisements to pay the players when they cash out. Thanks for the info here.
Check the rules in your state or country for sweepstakes and contests. Laws vary by state and country. In California for example: http://www.dca.ca.gov/publications/legal_guides/u-3.shtml Wikipedia: http://en.wikipedia.org/wiki/Sweepstakes Tennessee: http://answers.google.com/answers/threadview/id/716341.html
Good topic and I have had the same question for some time. I would like to give money away for a reward for information from the user. The definitions above are perfect for what I was wondering. Looks like what I need to run is a "lottery". Thanks!!
Surely if the worst comes to the worst you can simply claim it was a promotional contest in an attempt to gain users or whatever.
If they play for free... and get cash it is okay. If some play for free and some spend money... and get cash it is okay. If they only spend money... and get cash then it is considered gambling and would require gambling license.
what is a user comes to the site (with ads placed on it), participates in random whatevers (games, surveys, polls) but has a chance to win at the end of the month, based on each user participation? user gives participation ads give revenue to owner owner provides chance to win % of revenue Is that legal?
Here in the UK I think it depends on numbers once you earn over a certain amount you have to register as a business and pay TAXES. However if your just giving money away then that's your choice make a disclaimer saying your not a business it's your own personal money blah blah blah. However if it's money coming from other players like a "lottery" and your dividing that between them then this needs to be regulated and there would be a lot of legalities in it. As for your money for games site well if you plan to sell those games on for profit then again once your earning over a certain amount you will need to register as a business and pay taxes keep your books etc etc if your keeping them for personal use or to give away etc then nothing need be done. Anyway sorry as I know you were asking about USA law but thought this may be of interest for anyone who has the same question but is living within the UK.
thanks for the info. basically it would work like this. 1. user comes to my site and participates willingly in surveys or polls (random questions about whatever). while there, they view ads and maybe click on one or two as they leave. 2. if they have participated in any surverys, they are logged and that counts as an entry to win cash. 3. ads displayed earn me revenue, with which i give away a portion of that revenue each month I would like to keep a portion of the revenue myself, at some point, so it would be similar to an ad revenue sharing model, i guess. thanks again, i will keep checking.