Hi guys,
We are thinking about promoting a competition to help launch our mobile game.
The prizepool will be ~$10,000 USD and it will be free to enter.
It will be available worldwide and the winner will be paid through PayPal.
The winners will be decided based on skill - how well they score in our game.
We will verify results through Apple's Game Center.
My question is:
Is this legal and are there any fees/forms/certificates I need to attain to promote this competition?
Thanks!
You might also notice in the terms and conditions of most contests that they list some registration and/or permit numbers -- this is also likely something you'll need to handle. I'd second Tom's suggestion that you should really speak to a lawyer about this.
I think its legal. You do need to check your Apple developer agreement because I think giving real world prizes is specifically mentioned in there somewhere.
Im pretty sure apple disallows this for their products, any sort of real money prizes associated with your game. Although if you are just doing this over your website would be fine. You might have to contact certain countries as different countries will have different ways to handle money prizes.
Like in the states prize winning are taxed where as in Canada we are not taxed on prize winnings. Might be some hoops to hurdle from but I don't see it being illegal.
Prize money based on a highscore might fall under gambling laws in some countries depending on your game (which would make it illegal in some countries). Here in the Netherlands contestants need to have a significant influence on the outcome of a contest(random generated numbers are your enemy here), otherwise it's seen as (illegal) gambling. Like others have mentioned before, you should consult a lawyer.
Prize money based on a highscore might fall under gambling laws in some countries depending on your game (which would make it illegal in some countries). Here in the Netherlands contestants need to have a significant influence on the outcome of a contest(random generated numbers are your enemy here), otherwise it's seen as (illegal) gambling. Like others have mentioned before, you should consult a lawyer.
But hes awarding a prize, there's no input of money from the users end so its most likely not considered gambling more of a sweepstakes.Gambled usually requires money to be spent on prize awards, if entry as he states is free this wouldn't fall under this category.
But hes awarding a prize, there's no input of money from the users end so its most likely not considered gambling more of a sweepstakes.Gambled usually requires money to be spent on prize awards, if entry as he states is free this wouldn't fall under this category.
Even without input of money it can fall under gambling law. For promotional prizes that involve chance, a license is required if prizes are larger than 4.500,- Euro. In addition to that, there are also rules that need to be followed regarding minors, handling personal information, complaints etc.
I'm far from a lawyer so don't take my word for it, but this can be a tricky topic.
Prize money based on a highscore might fall under gambling laws in some countries depending on your game (which would make it illegal in some countries). Here in the Netherlands contestants need to have a significant influence on the outcome of a contest(random generated numbers are your enemy here), otherwise it's seen as (illegal) gambling. Like others have mentioned before, you should consult a lawyer.
But hes awarding a prize, there's no input of money from the users end so its most likely not considered gambling more of a sweepstakes.Gambled usually requires money to be spent on prize awards, if entry as he states is free this wouldn't fall under this category.
But purchasing his game is not free. In that sense, what makes it different from purchasing a lottery ticket?
It's a competition, not a free giveaway. Laws get involved here.
Even Pepsi and Coca Cola prizes meet certain legal requirements like giving consumers one free entry into the competition without purchasing a Pepsi or Coke, if they mail in a letter, specifically so they can say "No Purchase Necessary" to satisfy the legal requirements.
The original posting is running a commercial business that is trying to use the possibility of money (but not the guarantee of money) to promote and ultimately drive sales of their game. Thus, it's definitely a case of "consult thou lawyer" time, because it's against consumer-protection laws in the United States to run a contest that requires payment (or purchase of a product - be it a Pepsi or an iOS app) to enter.
