Legal Question in Technology Law in California

Re: Legality for website contest involving money

Lotteries are illegal in the US and in California. Anything that involves paying money for a chance at a prize is illega. This is why promotions at, say, McDonald's provide, "no purchase necessary." The issues are terribly complicated and vary from state to state. Then there is the issue, of course, of the legality or lack thereof of internet gambling. Probably you should steer clear of anything involving your giving away money or prizes of other than nominal value.

Re: Legality for website contest involving money

In addition, I believe I've read that there is new legislation pending in the U.S. Congress to further tighten criminal laws against Internet gambling. Don't know what loopholes it's aimed at or its chances for passage, but you should learn about this as well.

Re: Legality for website contest involving money

Yes, it was passed by the House and is pending in the Senate. Among other things, the new law would make use of credit cards and other electronic transfers of money to pay gambling debts or prepay accounts illegal. Try entering the search terms Congress legislation Internet gambling into a search engine and read the first few results.