QUESTION
Does my idea for a web site break online gambling laws.
Asked on Dec 05th, 2012 on Business Law - New York
More details to this question:
My idea involves a regular online store, but instead of buying products for full price, users would pay as much as they wanted for it. For example you could pay 1 dollar for an iPod. Other people are also putting money towards that iPod. I would set the price at 200 dollar and whoever pays the 200th dollar gets the iPod. So, its kind of like group shopping because everybody is paying towards the same product. But at the same time its kind of like gambling because you dont know how close that item is to the 200 dollar finish line. You are paying money and hoping to buy the iPod.
1 ANSWER
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The "winner" of the item is determined by chance after the participants make a payment for the privilege of having a chance to win. No skill is required. 31 U.S.C. Section 5262 defines a bet as the staking or risking of property in order to win something of value based on the outcome of a game subject to chance. The business of accepting such bets is prohibited by this law.
Answered on Dec 06th, 2012 at 6:05 PM