What is the name of your state (only U.S. law)? Arkansas
Hello all,
I'm wanting to operate a Giveaway Site where I will give away a product each day and hopefully offset the cost of the product with Ad Impressions on the Website and potentially profit if the user base grows. I am trying to avoid becoming an "Illegal Lottery" because I've done a lot of independent research to find out rules and laws on the subject. I have the following things to take into consideration:
1. When Users login to the site for the first time each day they will be given a "Ticket" to enter a product giveaway with out of a list of products.
2. Aside from their Free ticket that is earned by simply logging into the site, users will be given the option to view Video Ads and will earn a "Ticket" for each Ad Viewed that can be used to enter their name once more into the Daily Giveaway of either the same or a different product.
3. At the end of the Month, for every 14 days that users have logged in during that month they will automatically be entered into a Monthly Giveaway.
A lottery by definition has 3 things from what I have read and gathered on my own:
1. A Prize
2. Chance
3. A Consideration
My arguments against this Giveaway Model being a lottery are as follows:
1. A Prize - We undeniably have a price, there is no getting around this since we are a giveaway.
2. Chance - Users will be entered into a pool of other users who are participating in the giveaway, them winning the product being given away is chance based, but a random winner will ALWAYS be chosen daily. 100% chance for SOMEONE joining the giveaway to win unlike a lottery where no one winning is a possibility.
3. A Consideration - The definition I found for a "Consideration" online was as follows: "Something of value. Often itÂ’s money, but it doesnÂ’t have to be. Depending on what you require entrants to do, you could be pushing the envelope on this element. Each state may have their own particular definition making it very difficult to manage". Ads do not have a direct monetary cost to the Users but they are tied to a monetary value that I would earn in the form of Ad Impressions.
My worry with the last bullet point is the fact that I'm allowing users to watch Ads in order for them to be given extra entries into the giveaway each day. The argument I could see being used against me on this point is that the User's "Time" would be the "Consideration" therefore validating the argument that I am an "Illegal Lottery".
Could the argument that my Giveaway Model is an "Illegal Lottery" hold up in court if someone were to BRING me to court?
Hello all,
I'm wanting to operate a Giveaway Site where I will give away a product each day and hopefully offset the cost of the product with Ad Impressions on the Website and potentially profit if the user base grows. I am trying to avoid becoming an "Illegal Lottery" because I've done a lot of independent research to find out rules and laws on the subject. I have the following things to take into consideration:
1. When Users login to the site for the first time each day they will be given a "Ticket" to enter a product giveaway with out of a list of products.
2. Aside from their Free ticket that is earned by simply logging into the site, users will be given the option to view Video Ads and will earn a "Ticket" for each Ad Viewed that can be used to enter their name once more into the Daily Giveaway of either the same or a different product.
3. At the end of the Month, for every 14 days that users have logged in during that month they will automatically be entered into a Monthly Giveaway.
A lottery by definition has 3 things from what I have read and gathered on my own:
1. A Prize
2. Chance
3. A Consideration
My arguments against this Giveaway Model being a lottery are as follows:
1. A Prize - We undeniably have a price, there is no getting around this since we are a giveaway.
2. Chance - Users will be entered into a pool of other users who are participating in the giveaway, them winning the product being given away is chance based, but a random winner will ALWAYS be chosen daily. 100% chance for SOMEONE joining the giveaway to win unlike a lottery where no one winning is a possibility.
3. A Consideration - The definition I found for a "Consideration" online was as follows: "Something of value. Often itÂ’s money, but it doesnÂ’t have to be. Depending on what you require entrants to do, you could be pushing the envelope on this element. Each state may have their own particular definition making it very difficult to manage". Ads do not have a direct monetary cost to the Users but they are tied to a monetary value that I would earn in the form of Ad Impressions.
My worry with the last bullet point is the fact that I'm allowing users to watch Ads in order for them to be given extra entries into the giveaway each day. The argument I could see being used against me on this point is that the User's "Time" would be the "Consideration" therefore validating the argument that I am an "Illegal Lottery".
Could the argument that my Giveaway Model is an "Illegal Lottery" hold up in court if someone were to BRING me to court?
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