Could this be classed as "Gambling"?

Hi all, I just recently started a promo for my store.

See... /113/52/200384/1.html

Prizes are vouchers that can only be spent in my stores and not actual L$.

Does anyone know if this could be classed as illegal under the new gambling ban?

Probably yes.

In FL a promotion giving random prizes requiring a purchace to etnter is illegal. Companies using this kind of promotion can be legal about it by offering an alternative, free method to enter the "contest" and make the purchase entry incidental.

This is clearly not what was intended to be banned in the wagering policy.

However, it would technically be banned under the definition provided in that policy.

This is something that should be considered in revising the wagering policy to make it clearer and more effective.

As to Real Life laws, that's a matter to research. It is true that generally contests like this can't be tied to purchases ("get your entry form from the cereal, or send an SASE to ___". But without bothering to actually look up one of those laws, I'd guess there would be exemptions to contests with total prizes below a certain monetary value.

If you accept the premise that the intent of the policy is to comply with the new internet gambling law, the UIGEA, then yes, this was intended to be banned.
What do you suggest? What exactly is the difference between this and other forms that should distinguish thig?


There may indeed be states with such exemptions. There may also be places where, as a matter of case law and practice, cases over such tiny amounts are rejected. (One guiding principle in law is that "the law does not concern itself with trifles. Don't, however, assume it applies everwhere or in ever case.)

Unfortunately, the way the UIGEA is written, it effectively requires that this be true in all the states, not just some. Furthermore, from the LL perspective, the issue is might be the total amount of wagering, not the size of the individual bets. So just because one example may be so small that the participants may not be in trouble, doesn't mean that LL wouldn't be in trouble.

Unfortunately I'd say the "No purchase neccessary" issue is where you'd fall foul of the gambling laws. If you offered people a free entry by sending you a notecard or by purchasing an item, then this would probably be allowed.

Why not just offer one item for sale for $0L, which is an easy way for people to enter at no charge. Furthermore, limit entries to one per customer, which would be good business policy anyway. You don't want customers with less cash feeling like people with more money have a better chance of winning, because that alienates the small customer.

Thanks for all the advice.
I decided to cancel to promo for the time being, just to be on the safe side.
Looks like I'll have to come up with some other idea
Ah well, that's SL!

As a general rule. If you have to ask - it probally is.

LOL. I guess i should've known really.

With a L$0 item for sale included in the raffle, you'd be OK. If LL called you on it, you could defend yourself by saying that it is NOT gambling, it's a promotional deal just those that we see all the time in RL. And in fact, it would not be wagering, since L$0 is NOT a wager.

It's not wagering because entrants are not charged a fee. Entry is free. It's simply automatic with the purchase of any product. (If you don't provide a free way to enter, then it IS wagering.)

However, it is against the letter of the LL rule., which is very poorly written and should be revised. They should learn to say what they mean and mean what they say, but they haven't learned that lesson yet, evidently.

Well for now I've decided to play it safe and have cancelled this promo.
I am working on an idea though where all my customers could get free stuff.
Still need to work out all the details and it would mean some updating, so it may take a while to get it underway. In the long run LL may have done me and my customers a favour as my new promo idea should be better for all.

I finally got around to starting a new "legal" promo at my store...

/113/77/202133/1.html

Now all customers get something

Easy enough, Give the vouchers out for free, and Draw a winner. If no Purcahse is necesary, and No money is given in exchange for the vouchers then it's all good. you are just giving away some free stuff. and Free will attract many people to your store.

Angel.