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Thread: Question about the legality of a system that resembles a private lottery

  1. #11

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    Anything that involves chance or entries is going to differ greatly from state to state on regulation, and even the definitions of some contests will vary state to state and context to context.
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  2. #12
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    Well it looks pretty obvious that we don't have enough details to give you any specific advice. I understand you not wanting to post details, but given that, you're the only one who knows enough about the product to be able to answer your own questions.

    Professionally anytime anyone comes to me with "Lottery" or some new contest scheme I steer clear because it generally invites trouble with the varying laws concerning them. So far no one has ever suggested a "new way" of running contests and lotteries to me that I wasn't expecting to see on CNBC's "American Greed" sometime in the future. It's just not the place you want to mess around because people will complain with a quickness if they think (or it simply appears like) you're pulling a fast one. And that's not good for any business.

    The details that you have posted about it don't seem like something that I, as a user, would bother with. Too complicated. Too many variables. And it gives off the impression that it's easily fixed. People like (and trust) simple..."Enter to win". That's it.

    Contests are already a hard sell. It's not like it was back in the 90's when the internet was new and you could sell pixels for $1.
    There are very few contests that people are going to jump through hoops for. A new car, or home.. maybe. I'll enter to win a new computer or some kind of tech from a reputable source that I regularly frequent.

    Of course there are people who do nothing but enter contests, but that's not most of us, nor your target demo.

    Most other things, if it's not simple or looks sketchy in some way, they won't bother to risk giving your their information to enter. And that's what it all comes down to, trust and credibility.

    Log in more times for more entries, "get" more entries if you're outside of the delivery area
    ...all those things are too complicated, are easily manipulated, and that affects the credibility of the "Contest" and the people running it.

    Seems like you're too focused on trying to create a new kind of contest and contest rules, than what contests are for. Contests aren't about the contest. They are a marketing strategy to gain users, subscribers, press, or overall promotion of a product or company. This is why the rules are simple for the user. Because it's not about the contest. It's about creating the awareness of whatever it is.

    Starting a contest is pretty easy. Promoting and getting people to enter it is the hard part, especially since most prizes suck. Creating complicated rules and structure isn't helpful.

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