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10-15-2008, 04:18 PM
| | Junior Member | | Join Date: Oct 2008
Posts: 2
| | | Photo Contest considered gambling?
What is the name of your state (only U.S. law)? South Dakota
Hi all,
I work for a media firm and we've developed a product aimed at non-profits (mostly humane socities) that allows them to raise money by holding a photo contest. This is actually a product we developed at the request of a local humane society, then decided to take it nation-wide. Essentially, the product works this way:
-The non-profit pays us a set-up fee.
-We set-up the contest. The contest is free to enter for all particpants.
-In order to vote on a photo, a donation is required. Each vote is a $1 donation.
-The top vote getter(s) receive(s) a prize. This is usually a calendar featuring the top 13 vote-getters (and the calendar is also sold for additional profits).
We've run five successful campaigns. However, it was recently brought to our attention by a potential client that this contest may consistute gambling (they're from California). Does anyone know if this does, in fact, consistute gambling, or know of a lawyer that we could contact who specializes in gaming laws? I've spent the afternoon searching but can only find responses geared toward charity poker events.   |
10-15-2008, 04:26 PM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 71,468
| | Quote:
Originally Posted by sheas  What is the name of your state (only U.S. law)? South Dakota
Hi all,
I work for a media firm and we've developed a product aimed at non-profits (mostly humane socities) that allows them to raise money by holding a photo contest. This is actually a product we developed at the request of a local humane society, then decided to take it nation-wide. Essentially, the product works this way:
-The non-profit pays us a set-up fee.
-We set-up the contest. The contest is free to enter for all particpants.
-In order to vote on a photo, a donation is required. Each vote is a $1 donation.
-The top vote getter(s) receive(s) a prize. This is usually a calendar featuring the top 13 vote-getters (and the calendar is also sold for additional profits).
We've run five successful campaigns. However, it was recently brought to our attention by a potential client that this contest may consistute gambling (they're from California). Does anyone know if this does, in fact, consistute gambling, or know of a lawyer that we could contact who specializes in gaming laws? I've spent the afternoon searching but can only find responses geared toward charity poker events. | **A: do people get a vote for free without paying a dollar? |
10-15-2008, 04:33 PM
| | Junior Member | | Join Date: Oct 2008
Posts: 2
| | | No, they must pay a $1 fee per vote. |
10-15-2008, 04:35 PM
| | Senior Member | | Join Date: Aug 2005 Location: St. Odo of Cluny Parish
Posts: 28,211
| | Quote:
Originally Posted by sheas No, they must pay a $1 fee per vote. | Ask the wannabe lawyer two questions:
1. What part constitutes a game of chance?
AND
B. What statute number is the wannabe citing.
Post back with the answers.
__________________
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(1) Never tell everything you know.
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10-17-2008, 07:48 AM
| | Senior Member | | Join Date: Jan 2007 Location: Michigan
Posts: 3,804
| | | Games of chance are prohibited under South Dakota law (Chapters 22-25) with exceptions for "charitable" gaming. Authorized under South Dakota law are games of chance by bona fide veterans, charitable educational, religious or fraternal organizations, civic and service clubs, et al, which are devoted to educational, charitable, patriotic, religious or other public spirited uses, under which your "contests" may fall.
Because your product is going nationwide, however, you must become familiarized with all state gaming laws and the federal gaming laws. A good site to check out is [url]http://www.gambling-law-U.S.com/Federal-Laws/[/url].
This site allows you to access not only the federal laws that apply to your contest, but also has links allowing you to access each of the states' gambling laws.
Your contest sounds like a great way to raise money for worthy charities. I wish you luck. |
10-19-2008, 10:36 PM
| | Member | | Join Date: Jul 2007
Posts: 944
| | | Like the judge says, "what part is a game of chance"? Since the people donating the money have no ability to win anything, how is it gambling?
__________________
--"When the stock market crashed, Franklin Roosevelt got on the television and didn't just talk about the princes of greed," Biden told Couric. "He said, 'Look, here's what happened.'" - Vice Presidential candidate, Joe Biden
"And if you owned an experimental TV set in 1929, you would have seen Roosevelt. And you would have said to yourself, 'Who is that guy? What happened to President Hoover?'"
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10-20-2008, 03:17 PM
| | Senior Member | | Join Date: Jan 2007 Location: Michigan
Posts: 3,804
| | Good point, SJ and JustAPal00. 
It sounds more like sheas needs to investigate the laws for commercial fundraising in each state, as opposed to gaming laws. I read the first post wrong. It is only the vote-getter that gets a prize, not those paying to vote, so there is no gambling involved at all.
Commercial fundraisers are paid by charities to raise money for the charities. In California, the California Attorney General oversees all commercial fundraising activities and the fundraisers must register with the AG's Office in order to operate, and they must file financial disclosure reports.
That seems to be the area of concern for shea and his media firm when raising money to produce the calendars for sale. | |
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