On-line Contest

Which law applies?

[fashezee]

I am setting up a on-line contest where users pay a fee and have the opportunity to win a monetary grand prize. There is a gaurenteed winner. I am assuming there is laws governing gambling on-line? If so, is it the law of the city where the profits of the contest are percieved or where the site is being hosted?

Your help or where I could get help on this issue would be much appreciated.

[seth_wilde]

I believe it's the law of where the site is being hosted..

[Brett_Tabke]

Fashezee, you really need to read up about online contests that offer monetary rewards before starting one. There is a huge segment of laws that will govern it. There are also active govt agents that are out there looking for just such things. It's why most of the online gambling sites are not found in any "major country". You need to read a great deal about it.

[fashezee]

Now I know why all the gambling sites are hosted in the Caribbeans.

Brett, would you know where I can read up about these issues? I'm in Montreal, but I got a dedicated server in Texas. Should I get a server in Nevada? I'm not to familar with the laws in the US, do you know of any sites that can help?

[hasbeen]

I found this with regard to online gambling laws [online-gambling-rules.org]. It's at least a place to start. If I find anything else, I'll let you know.

Also found THIS [techfirm.com] and THIS [digital-women.com].

[papabaer]

I was the MIS/IT Supervisor at a Native American casino in northern Michigan; I also headed the Internet gaming project, that brought the first Internet gambling to originate from within the United States. This was a Class II Game (paramutual/bingo) which according to IGRA (Indian Gaming Regulatory Act) we should've been able to run (there are provisions for tribes to utilize "any and all future technologies...") This is a HUGE BATTLE that is still being fought.

I've lobbied in on Capitol Hill, attended the first International Gaming Summit in Van Couver, I worked closely with the tribe's Gaming Commision and participated in some of the wildest meetings you could ever imagine... So you might say, I have a little background in the matter.

In short, if you are considering ANY type of "gambling" over the Internet, and either, you, your host/isp or anyone else involved with the operation of the game is located on U.S. soil --- don't even consider it! The DOJ will come a' knockin' at your door!

[startup]

fashezee,
Some of the biggest names in online gambling are located in your province. They are on a Indian reservation, Kannawhakee (check the spelling). This has been going on for years. I can also tell you that when someone does "win" the cheques are mailed from the same reservation.