Online Game site - legal issues

Interested in a project that will have a 'pool fund' prize draw monthly for site members.

 

Does anyone have info on legal issues with this?

Was thinking of a few possible options in how to run a 'raffle' type prize for members...

1 - buy a raffle ticket. Random winner drawn when X amount of tickets sold. 

2 - free monthly ticket draw for all members, but charge monthly membership to site...

3 - as above but base winner on some skill game.

 

in each case, a small portion of 'ticket money' would go to site, most to winning ticket.

 

Site would be UK owned, but hosted on USA server if that makes a difference?

Anyone know about legal ins and outs of this sort of thing?

 

Thanks :-)

Quote · 20 Dec 2012

As you are UK based it does not mater where your servers based, you must comply with the requirements of UK Law in particular in this case the Gambling Act 2005.

Prize competitions and free draws are free of statutory regulatory control under the Gambling Act 2005 (the Act). Such competitions and draws can therefore be organised commercially for private benefit and profit. This contrasts with public lotteries, which are the preserve of good causes, and must, unless they qualify in one of the ‘exempt’ categories, operate under a licence issued by the Gambling Commission (the Commission).

See this link for more information

http://www.gamblingcommission.gov.uk/

Quote · 20 Dec 2012
 
 
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