I'd like to get some guidance on running tournaments for games that are skill-based but also include an element of luck (e.g. Canasta, Rummy, Mah Jongg, etc). In particular, I'd like to get an understanding of whether these tournaments would be considered gambling.
I realize that laws are different in each state, so let's use Florida as an example, since it seems to have quite restrictive gambling laws. Reading Florida Statute 849.08 and 849.085, it seems that running tournaments for these types of games would be illegal, since they involve an entry fee, cash prizes and are typically held in a public or commercial venue. Is my understanding correct?
I do see a lot of such tournaments organized in states where the laws appear to suggest it would not be legal to do so. These events tend to take place in large hotels, with several hundred competitors who have paid a fee to be at the event and compete for cash prizes. Are the organizers of these tournaments just flying under the radar, or are there exemptions that I'm not aware of, that allow these tournaments to be held legally?
Or, is this one of those things that is illegal but small enough in scales that states don't ever bother investigating or prosecuting?
Also, what would be the situation if these tournaments were held online? What laws apply? The laws of the state where the organizer is located or their LLC is registered, or the laws of the state where the participant is located? If the latter, would the organizer have to verify residency of participants and exclude those who live in states where such tournaments would be prohibited? What about participants that live outside the US?
Lots of questions! If anyone is able to answer any part of the above, or point me in the right direction for further research, I’d be extremely grateful.
Admins: If there is a more appropriate section to post this question, please move. Thank you.
I realize that laws are different in each state, so let's use Florida as an example, since it seems to have quite restrictive gambling laws. Reading Florida Statute 849.08 and 849.085, it seems that running tournaments for these types of games would be illegal, since they involve an entry fee, cash prizes and are typically held in a public or commercial venue. Is my understanding correct?
I do see a lot of such tournaments organized in states where the laws appear to suggest it would not be legal to do so. These events tend to take place in large hotels, with several hundred competitors who have paid a fee to be at the event and compete for cash prizes. Are the organizers of these tournaments just flying under the radar, or are there exemptions that I'm not aware of, that allow these tournaments to be held legally?
Or, is this one of those things that is illegal but small enough in scales that states don't ever bother investigating or prosecuting?
Also, what would be the situation if these tournaments were held online? What laws apply? The laws of the state where the organizer is located or their LLC is registered, or the laws of the state where the participant is located? If the latter, would the organizer have to verify residency of participants and exclude those who live in states where such tournaments would be prohibited? What about participants that live outside the US?
Lots of questions! If anyone is able to answer any part of the above, or point me in the right direction for further research, I’d be extremely grateful.
Admins: If there is a more appropriate section to post this question, please move. Thank you.
