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We have got a GPT site (get paid to). we pay people to

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We have got a GPT...
We have got a GPT site ('get paid to').
we pay people to complete offers/surveys. We share % of the money we get from these surveys. so users earn credit in their account at our site, and can cash-out into their paypal.

This is all good,
but we are are soon adding a new GAMES section to the site.
Users play real time tournaments against other members within our website.
In order to play. the user have to risk, lets say 1$ from his credit(earned by doing surveys/offers only!),
If he wins he get 2$ back.

As far as i know these are only skills games. like, racing, bubbles etc...

At NO point the user can ever deposit money into his account. we DONT have this option. the only money a user can risk is money earned by doing surveys/offers !

THE QUESTION IS:
Dose this count as GAMBLING OR NOT ?
Can we go ahead and implement it on our site right now, or do we have a legal problem ?

We have traffic coming from almost any county, including the US .
The company is registered offshore.

Please let us know ASAP, this is an urgent issue!
Submitted: 6 years ago.Category: Business Law
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Answered in 59 minutes by:
1/4/2012
Business Lawyer: Law Educator, Esq., Attorney replied 6 years ago
Law Educator, Esq.
Category: Business Law
Satisfied Customers: 121,098
Experience: All corporate law, including non-profits and charitable fraternal organizations.
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If he can cash out at any point and receive money, then it could fall under the gambling laws and under US law you cannot pay out on an internet gaming debt. Once they earned the money on the site, it became their money, so they are betting money. HOWEVER, if they are games of pure skill, then they are not considered gambling.


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Customer reply replied 6 years ago
Hi, thanks for your replay.

So.. the big qustion is.. how do i detrmine if its pure skill games or not ?

Could you look at our games section at --> www.get-paid.com/games.php
You must be logged-in, please use login:
user: gilad1
pass: kaiebel

=========

Another qeustion, in case it is count as gambling website,
Since we are registred offshore(belize),
Who should bother us if we do that?
Which law, which government is involved with it?
Business Lawyer: Law Educator, Esq., Attorney replied 6 years ago
A game of skill is one where it is the player's actions and not reliance on chance that are how he would win the game. If these algorithms do not incorporate any chance in the games they are fine (the game producer needs to give you that information).

If it is gambling, the US would seek to seize payments as they enter the country as they have no authority in Belize banks.
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Customer reply replied 6 years ago
Ive got no way to ask the 'game producer' as its a network. and they would not know as well..
How can i determine if its pure skill or not ? i still dont get it..
I mean there is chace in what ever you do. you go for a run, maybe it will rain and you will run slower, you know what i mean ? same as if you played games like we have... but how can i know for sure ?
=================
"If it is gambling, the US would seek to seize payments as they enter the country as they have no authority in Belize banks"

So i would have no problem, unless i actully visits the US ?
What if the company is not registered on my name, but its registered to a 'company' ..
============
In case it is a skill game. do we still need to get some license or can we just go for it ?
Business Lawyer: Law Educator, Esq., Attorney replied 6 years ago
I do not see if these games are skill based (I am not a game player) that they would be gambling under the US law. You would need someone who is an expert inn games to determine if they are skill.

You would have no problem in almost any case and you do not need a license for this.
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Customer reply replied 6 years ago
ive just checked with one website that dose skill games for money. worldwinner.com.
HERE IS WHAT THEY SAY ON THEIR WEBSITE:

Is playing games on WorldWinner legal?

Yes. The games on WorldWinner are no different than carnival games, chess tournaments or the myriad other skill-based games that have been played for cash or prizes in the offline world for years -- we've just taken them online.

The outcome of all WorldWinner games is based on the player's skill. This is in sharp contrast to lotteries or games typically found in casinos, where every player ultimately faces the same random odds. Even with games in which chance would appear to dictate a role in the outcome of the contest, such as solitaire, WorldWinner has engineered the game so the outcome is based on the player's skill. For example, WorldWinner levels the playing field by providing each player with an equally difficult hand of cards, so it's ultimately how quickly and skillfully each player approaches the game that determines the winner. And while every WorldWinner solitaire hand is potentially solvable if a player plays their cards right, a player ultimately wins a tournament by outscoring their opponent, even if they don't solve the hand.

Although the distinctions between skill-based games and games of chance are clear, there are a few states within the U.S. that do not permit skill-based games to be played for cash or prizes. Residents of those states can still enjoy WorldWinner's free games without cash or prize offerings.


So, its appears that its ok, in some states.. so.. what do i do about that ? can i add it to my website or not ?
Business Lawyer: Law Educator, Esq., Attorney replied 6 years ago
It is in fine in most states and you can adapt the warning to your site as well.
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Customer reply replied 6 years ago
So as long as i have a warning in my site, its fine ?
Or do i actively need to block user from these states automatically?

==============

In any case, do i need to add something to my 'terms and condition' page ?

Gilad.
Business Lawyer: Law Educator, Esq., Attorney replied 6 years ago
You do not have to block them from your site, but you make it clear you will not pay any winners from those particular states and they are not eligible to play.
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