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The Fine Line Between Promotions and Illegal Gambling

The Fine Line Between Promotions and Illegal Gambling

A huge amount of effort is put into promotions by companies as they attempt to attract more customers and beat the competition. However, companies have to be extremely careful that these promotions are not in actual fact illegal gambling events.

The Fine Line Between Promotions and Illegal Gambling

There is an army of lawyers that specialises in helping companies avoid accidentally running promotions which may be illegal gambling events.

The plus side is that gaming lawyers are kept constantly in work. As one lawyer, Lowenhar-Fisher said, “As gaming lawyers, we’re uniquely positioned to tell them how to do it right and avoid conducting gambling.”

According to the American Bar Association, Nevada is home to more than 7,000 lawyers that have 70 core practise areas and 260 secondary practise areas. Las Vegas lawyers often specialise in the distinction between playing and gambling.

Gambling is defined by the presence of three elements: chance, consideration (a bet or a fee) and a prize.

However, if you remove chance from the equation it is called a contest, as the winner is determined by skill. If you put chance back in and remove consideration and it is officially a sweepstakes.

A common trap which lawyers are particularly aware of is the use of phrases such as “No purchase necessary” when advertising sweepstakes. It is possible that certain activities, such as frequenting a business a certain amount of times, could be defined as consideration. In that case, the company may accidentally be running an illegal gambling contest.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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