Legal Question in Technology Law in Virginia

Charging a fee and giving out Prize Money for Online Internet Gaming Tournaments

I co-own a website with my partner in Ottawa Canada. I live in Virginia. We have a partnership agreement but have not registered the site as a business yet.

We would like to setup online gaming tournaments where say 128 people pay $5.00 to play a game like "Tiger Woods Golf" and we would pay off a prize like $200.00 1st, $100.00 2nd, 50 3rd and two $50.00 random prizes.

I'd like to know is this legal to do on the internet? Does anyone consider this "gambling" or are there any issues we need to be concerned about?

Our site is www.crushem.com. Thanks for your responses!


Asked on 12/13/99, 8:26 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Charging a fee and giving out Prize Money for Online Internet Gaming Tournam

This would be considered gambling and would be illegal in VA. There are ways to set up gaming sites offshore, but you need to retain competent legal counsel familiar with this area.

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Answered on 12/14/99, 9:54 pm


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