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Is prize game considered lottery, auctions or other gambling?

Discussion in 'BlackHat Lounge' started by Zyxzed, Jul 27, 2011.

  1. Zyxzed

    Zyxzed Junior Member

    Jan 31, 2011
    Likes Received:
    Hello every1 :)

    do you know is a prize game considered as a lottery, auctions or other gambling?

    I am just curious.

  2. phlex

    phlex Registered Member

    Feb 2, 2012
    Likes Received:
    Product / Business Developer
    Very basic rule, details always depend on your country of residence:

    A) Do people have to pay to participate and have a chance to win?
    B) Do people have a chance to change their odds of winning using their skills and/or knowledge? (e.g. quiz)

    A yes | B yes: should be fine, it's a skill game not a lottery*
    A yes | B no: generally considered a lottery
    A no | B yes: all good
    A no | B no: all good

    *comes down to jurisdiction and the exact type of game

    There are always grey areas, though, sure... I wanted to keep it simple. And again, laws are different in every country... the above scheme is quite accurate for UK, Germany, Austria and most other Western European countries as far as I know. And it *should* fit for the US, too - please correct me if I am wrong.