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MDLaw
MDLaw, Attorney
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Hello, I am currently in the military in Idaho, I wanted

Resolved Question:

Hello,

I am currently in the military in Idaho, I wanted to start an online business, but once I explained my business idea, I was told my base legal who reviews my off-duty employment that my idea would violates idaho gambling laws. I looked up the Idaho gambling several times, but I am not how I am violating it since my idea is not a game of chance. A description of my website and it's functions are below:

WWW.FUNTASK4CASH.COM

Background Notes:
I purchase the domain name and filed it as a LLC in the state of Idaho around 2 years ago. There has been no work or operation of the site to the public, since I have been working on customizing the site’s function in Joomla. The domain is and has been offline; it’s just been a hobby of mine, in which I hope to turn into business.

Business Model: (Hybrid between service sales and E-Shop)
We offer mainly tasks, but at times will offer treasures hunts and mini games all through our website and mobile phone application that cost tasks points and minimum number of users to participate in. It’s our hope that the friendly competitive environment and experience are addictive and enjoyable, users are willing to continue to pay for task points to compete in the various other tasks. We also look to make revenue through advertisements. The expenses we will incur are derived from the operation and maintenance of keeping the site up and running, hosting the server platform, potential bandwidth expansion, monthly internet and cellular bill, postage, cash rewards and prizes for users that accomplish and win each task.

How the Site the Works:
FunTask4Cash’s vision is to be a website business that creates an environment where customer/users can compete against each other completing a specific Task (Not Job tasks like most of those other sites out there, but everyday interesting and fun tasks). Examples of such tasks can range from {Finding a specific quote or verbiage from a book the fastest} to {photographing three friends wearing red, white and blue all jumping, “everyone’s feet must be off the ground”}. It can be any task within reason that is legal. The tasks and cash rewards range from $10 to $200 daily for each task depending upon their difficulty or complexity. One of our expenses is prizes, which is an extra perk hidden in certain tasks. These hidden perks can range from things such as IPods, IPads, IPhones, MACBOOKs, Kindles, Gifts Cards, etc. The kicker is that to be able to enter into a “Fun Task” it requires task points, which can be purchase through the site’s e-commerce feature.

“Scenario for better understanding”
Let’s say a user purchases ten task points for $8.99. The user would like to participate in a $10 task which only requires three task points to participate in. The task requires a minimum of five users to commence. Let’s say our particular user won the $10 task. They just earned $10 for winning the task that day, but they are also automatically qualified for the Winner’s Circle to compete against other daily winners of the $10 task element that week. This means the $10 winners from Monday through Friday all compete against each other for free on Saturday for the Task Master’s Crown and to win triple (3) their task element. (Instead of winning $10, the Saturday winners would win $30. $10 x 3 = $30). Let’s say that this particular Saturday Winner’s Circle task also included an 8 gig IPod Touch as the hidden perk. This means that our scenario user won a total of $40 and an 8 gig IPod Touch from utilizing 3 out of the 10 task points purchased for $8.99.

Idaho Gambling laws states: Idaho Statutes

18-3801. GAMBLING DEFINED.

"Gambling" means risking any money, credit, deposit or other thing of value for gain contingent in whole or in part upon lot, chance, the operation of a gambling device or the happening or outcome of an event, including a sporting event, the operation of casino gambling including, but not limited to, blackjack, craps, roulette, poker, bacarrat [baccarat] or keno, but does not include:

(1) Bona fide contests of skill, speed, strength or endurance in which awards are made only to entrants or the owners of entrants; or

(2) Bona fide business transactions which are valid under the law of contracts; or

(3) Games that award only additional play; or

(4) Merchant promotional contests and drawings conducted incidentally to bona fide nongaming business operations, if prizes are awarded without consideration being charged to participants; or

(5) Other acts or transactions now or hereafter expressly authorized by law.

18-3802. GAMBLING PROHIBITED.

(1) A person is guilty of gambling if he:

(a) Participates in gambling; or

(b) Knowingly permits any gambling to be played, conducted or dealt upon or in any real or personal property owned, rented, or under the control of the actor, whether in whole or in part.

(2) Gambling is a misdemeanor.

I am curious to know how my idea doesn't fall under bona fide speed, skill, etc?
Submitted: 1 year ago.
Category: Business Law
Expert:  MDLaw replied 1 year ago.
What is your legal question, please? Are you trying to understand why your idea is indeed a game of chance?
Customer: replied 1 year ago.


Correct, my question is how exactly does my idea falls under a game of chance? When It seems to me that it would falls under a contest of speed and skill?

Expert:  MDLaw replied 1 year ago.

The following part of your business is what would be considered chance and not skill:

 

"This means the $10 winners from Monday through Friday all compete against each other for free on Saturday for the Task Master's Crown and to win triple (3) their task element. (Instead of winning $10, the Saturday winners would win $30. $10 x 3 = $30). Let's say that this particular Saturday Winner's Circle task also included an 8 gig IPod Touch as the hidden perk. This means that our scenario user won a total of $40 and an 8 gig IPod Touch from utilizing 3 out of the 10 task points purchased for $8.99. "

 

Based on what you have written, winning triple and winning the prize is complete chance, unless you have left out what they need to have done to triple their "earnings" and win the prize.

 

 

Customer: replied 1 year ago.


I am sorry, I am still a little lost, because the task on Saturday is for the winners of the week and it does not cost them anything. They will still be competing agianst each other in an undisclose task that would require speed and skill to win.


 


I guess with my site, since I am offering a service with task competitions, people are purchasing task points to enter into any fun task compettions of their choosing, none of the fun task are by lot or chance like at a casino, but they all require speed and skill to accomplish, which to me is well within the gambling laws of Idaho.

Expert:  MDLaw replied 1 year ago.

In order to avoid being considered gambling, you would need to focus on the actual skills that would be required. It cannot be a token task, for example. If you focus on that, instead of the prizes, then you may be able to make the business fit within the law.

 

 

MDLaw, Attorney
Category: Business Law
Satisfied Customers: 5791
Experience: Experience in business law, contract law and related matters.
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