I’m seriously considering starting an internet based business where revenue would be drawn from participants in a game of skill, in which the winner will be awarded a monetary sum. I’m aware that there are several laws that will apply, but I don’t know all of them.
What constitutes a game of skill as opposed to a game of chance? Is it true that basing the amount of award money on the money gathered to play makes it illegal? Is it then legal (or more legal in case I’m forgetting something else) to have a fixed award, yet still gather the participation fee?
What other caveats should I be aware of, and how in heck can I find the relevant laws?
i would suggest going to the town hall er whatever is near you and asking them for the laws in your area or ask them about the laws you need to no about. They should know if not please reply and im sure me or a million other people(or even yourself :rolleyes: ) can find this info on the web!
Your profile says you’re in Texas. State gambling laws vary widely, so I’m not even going to try to answer this one. (I’m in Illinois.) Talk to a Texas lawyer, or go to a library which has a set of texas statute books, preferably annotated. I’m not sure if Texas statutes are online.
Oh, I have found quite a bit of info on the web, but of course, I can’t be sure that I’ve found everything that’s relevant, or that I have interpreted what I have found correctly. I’d rather not spend the money on a lawyer just yet, as my idea is still in the very early stages.
The town hall idea is good, but being an internet based business, it would necessarily have to also worry about state (and other states!) and federal laws.
What I’ve found so far seems to indicate that charging to play a game of skill is okay as long as:
the judging criteria are objective and publicly available
the amount of the award is not dependent on the amount contributed by the players. This one seems stupid to me, but if it’s the law, I’ve got to abide. (Never thought I’d hear me saying that.)
the game is dominantly skill determined, rather than chance determined. This is the main point that I’m worried about. The game I have in mind is most certainly skill-based, however the law seems sufficiently vague that someone could probably give me trouble.
You’ll also want to look into the new COPPA law since it will be on the internet. Its a federal law, but I don’t happen to have a website addy for ya at the moment.
IMHO you are dangerously wasting time here. You need a lawyer and a good one at that. Anything else and you probably won’t last long. this kind of stuff is not for amateur night, believe me.