Competition Law

Snetty said:

I'm the webdeveloper for www.thecarshowcase.com. We're working on a site where visitors can pay to enter competitions. Competition winners are selected based on the best car modifications. Prizes will be auto hardware (donated by sponsors).

Anyway, my reason for posting is that we've heard that the above is classed as an illegal lottery? Can anyone provide us with a bit of information on this.

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Snetty said:

erm, i'm not sure what state they're in. I think they live in New York, but i'm not sure. I wouldn't have thought the state would be relevant given that it's an internet based business.

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