Illinois | Securities Law
Legal Question
Internet Gambling/Safe Port Act
Myself and two others are in the process of writing a web application that allows people to trade nothing (there is no economic product, that is). The basic use case is people buy a number of products or credits from the house for a given amount (let's say each product/credit costs a $1.00, $0.05 of which goes to the house, $0.95 goes to the pot), then buying products is disabled, and trading begins (short selling is not allowed, nor is having negative credits, so it'd be wise for users to buy a mix of credits and products), and ends after a given period of time (let's say 3 months). When trading is complete, the top player is awarded $0.95 for each chip/credit s/he holds (so if s/he holds all the credits/products, s/he would get (everyone's input)($0.95). Lower places get nothing and the excess is returned to the house, if there is a tie for first, the money will be split accordingly. Is this legal throughout the United States and, if not, what can be done to make it legal short of making it free and, whether it is legal or not, what laws may apply. I apologize for what I'm hoping is a difficult question, and understand if nobody is able or wishes to answer, and hope anyone who does answer enjoys the question.
Share This On:
Legal Answer
|
Read More Answered By: Adam Tracy |
|
|
