I am looking to run an internet based game. Players must pay $2 a month to play and are given $5 in fake cash. $1 of their membership is placed into the prize pool. The players can steal other players fake money and defend their own through game play. The players can then cash out for $1 USD = $3 fake dollars. Players also have the opportunity to win prizes such as an Xbox 360.
Would this be considered legal in the United States? They are playing for the chance to win money, not wagering money.
2006-11-06 05:58:39 · 4 answers · asked by lemonpiesaregood2002 1 in Politics & Government ➔ Law & Ethics
Unless you have a way of taxing their winnings, then it's illegal - Even if they're not betting, they're winning and winnings over a certain amount (Even in the form of prizes, like an Xbox) are taxable.
2006-11-06 06:08:07 · answer #1 · answered by Yo LO! 6 · 0⤊ 1⤋
As long goverment can make no money of it it's illegal!
2006-11-06 06:43:13 · answer #2 · answered by It's Me! 5 · 0⤊ 0⤋
No, its no longer legal to have such games!
2006-11-06 06:01:43 · answer #3 · answered by Latin Techie 7 · 0⤊ 2⤋
Thats what lawyers are for. Get one.
2006-11-06 06:00:48 · answer #4 · answered by Terry B 3 · 1⤊ 2⤋