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  1. #1
    Join Date
    Nov 2004
    Location
    Switzerland
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    855

    It legal or not to host lottery website

    One of my customers want to run a kind of lottery from his website. As the server is located is the US, I don't know if I can host such website or not.

    That could be great if I can, because he is ready to pay the right price.

    Thank you for your advice.
    .:. Enterprise SAN Consultant .:.

  2. #2
    Join Date
    Jul 2002
    Location
    Florida
    Posts
    285
    I'd check with a lawyer located in the state your servers are.
    Mark

  3. #3
    Join Date
    Nov 2004
    Location
    UK
    Posts
    191
    certainly very questionable, I would seek professional legal advice.

  4. #4
    Join Date
    Nov 2004
    Location
    Switzerland
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    Ok, it depends on the servers state... :-) Thank you for your advice.

    The server will be located in the US but the targetted audience will be from Europe.
    .:. Enterprise SAN Consultant .:.

  5. #5
    I know lottery's are illegal in some states, for instance wyoming. Maybe he will have to limit the people who participate to certain states :\

  6. #6
    Join Date
    Mar 2004
    Location
    Chicago
    Posts
    95
    I believe that lottery's are illegal to run, whereas contests and sweepstakes are not. If it costs something to enter (cash), then I believe that the US Government will not allow you to do anything of the sort. However, if it is free to enter (sweepstakes), or if it requires skill to enter (contest entry), then it is perfectly fine.
    Vintage Host Optimization -- Want security? We've got your security right here.

  7. #7
    Join Date
    Nov 2004
    Location
    Switzerland
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    Thank you for your help :-) I will contact my customer to know if there are some money involved here.
    .:. Enterprise SAN Consultant .:.

  8. #8
    Lottery sites are illegal to run.

  9. #9
    Yeah I'm pretty sure this is illegal as well. It doesn't matter if he is targeting people outside of the country, he is based in the USA so it's illegal.

  10. #10
    Join Date
    Oct 2004
    Location
    Central / Midwest USA
    Posts
    500
    Is it illegal to run a "lottery" site if you have some kind of requirement? Such as you purchase a ticket to participate in a contest (such as designing) and you complete the contest and you have a winner who wins some money... But the winner will be the winner of a designing contest
    .-=={[(' Sitedesigner ')]}==-.

    ~Entrepreneur at heart~ Pm me.

  11. #11
    Join Date
    Nov 2004
    Location
    Switzerland
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    855
    Thank you for your help. But changed the system:

    - All the website, except the gambling page will be hosted in the US

    - The gambling page will be hosted in Panama.

    So, the US part of the website will be considered just as a promotion for a gambling website. There will be no gambling on the US server.
    .:. Enterprise SAN Consultant .:.

  12. #12
    Join Date
    Jul 2003
    Location
    Michigan
    Posts
    288
    I think its Illegal too, but maybe if its a Out of Country webhost, it may not be a problem, but if its USA, than ya get legal advise.
    RackRhino Server Locations: MO, MI, NY, FL, UK
    Shared, Dedicated, Managed & Reseller.

  13. #13
    Does he have a license in Panama? If I were you I wouldn't try to find loopholes to enable yourself to support illegal activity.
    Give these guys an e-mail http://www.gamblinglicenses.com/kellyCom.cfm

  14. #14
    Join Date
    Oct 2004
    Location
    Central / Midwest USA
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    500
    Definitely do not try to find a loophole. Although this seems like a very good money maker, it is not worth the risk of losing it all :|
    .-=={[(' Sitedesigner ')]}==-.

    ~Entrepreneur at heart~ Pm me.

  15. #15
    What's it matter if the lottery is legal? You're not running the site, you're just selling him web hosting. I'm no lawyer, but as far as I know business law, contracting to sell a product/service to someone, knowing they may use what you're selling illegally, is not an illegal contract unless you explicitly further the illegal action. In other words, selling hosting for an illegal site isn't illegal unless you do something like also hide their WHOIS data for them to obfuscate the physical location of the owner. Up to you guys to decide if that sounds right.
    Dan Grossman - dan @ awio.com
    My Blog | Affiliate Program for Web Hosts

  16. #16
    Join Date
    Nov 2004
    Location
    Switzerland
    Posts
    855
    Thank you. I contacted the customer and asked him to take a legal advice before anything. It's not on my interest to have the server disconnected for illegal activity. The customer will loose his money and we can loose the said customer.
    .:. Enterprise SAN Consultant .:.

  17. #17
    Join Date
    Nov 2001
    Location
    Philadelphia, Pa
    Posts
    949
    I believe that lottery's are illegal to run, whereas contests and sweepstakes are not. If it costs something to enter (cash), then I believe that the US Government will not allow you to do anything of the sort. However, if it is free to enter (sweepstakes), or if it requires skill to enter (contest entry), then it is perfectly fine.
    What about raffles?

  18. #18
    Join Date
    Mar 2004
    Location
    Chicago
    Posts
    95
    I believe that raffles in the US are legal to a certain extent. Charitable causes, or those that do not give away cash prives (i.e. giving away a fishing boat), are legal. Those that do give away cash prives and are not charitable require a liscense before you can conduct any sort of raffle.

    It all depends on how the local jurisdiction defines the seperate terms.
    Vintage Host Optimization -- Want security? We've got your security right here.

  19. #19
    Join Date
    Oct 2004
    Location
    Central / Midwest USA
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    500
    Originally posted by derek.bodner
    What about raffles?
    what's the difference between raffle and lottery?
    .-=={[(' Sitedesigner ')]}==-.

    ~Entrepreneur at heart~ Pm me.

  20. #20
    Join Date
    Mar 2004
    Location
    Chicago
    Posts
    95
    There really isn't much difference: They are both games of chance, and they both require an entry fee (atleast most raffles do). A liscense can be given out for a raffle, but only states and non-profit organizations can legally run a lottery.

    The difference is extreemly minute -- like I said, it's all about how the local jurisdiction defines the terms.
    Vintage Host Optimization -- Want security? We've got your security right here.

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