How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask ScottyMacEsq Your Own Question
ScottyMacEsq
ScottyMacEsq, Attorney
Category: Legal
Satisfied Customers: 16370
Experience:  Licensed Texas General Practice Attorney
19487448
Type Your Legal Question Here...
ScottyMacEsq is online now
A new question is answered every 9 seconds

Would it be legal to build a mobile application

Customer Question

Would it be legal to build a mobile application for Android and iPhone devices that allowed the user to pay to be in a weight loss competition where the winner gets 90% of the proceeds from each individuals entry fee for the competition. We also could substitute gift cards or prizes instead of cash earnings if cash earnings are prohibited. To further clarify, the user will sign up on our application and choose how many pounds they want to lose, we will have $50 and $100 entry fees and if they win the competition they will receive 90% of all buy ins or gift cards that value equally to that. Thank you!
Submitted: 2 years ago.
Category: Legal
Expert:  ScottyMacEsq replied 2 years ago.
Thank you for using JustAnswer. Yes, it would be legal. What's illegal are "games of chance" (gambling), which has three elements: (1) payment of money or other thing of value, (2) for a chance of winning (3) money or something of value. If you don't have one of these elements, it's not gambling. Sweepstakes, for example, always say "no purchase necessary" to get by the payment of money element that would otherwise make it gambling. So it would be legal. The problem, however, is how do you "police" the contest. That is, how can you accurately verify the weight lost. That's where I see a significant potential liability (as in class action level, with potentially thousands suing you for breach of contract. That's likely why you haven't seen these games before, because of the problem in verifying the thing that would make them win: the weight loss. If you have figured out that portion, the other issues are not a problem, as it's a valid contest because it's not based on chance. Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, ***** ***** luck to you!
Expert:  ScottyMacEsq replied 2 years ago.
Did you have any other questions before you rate this answer?
Expert:  ScottyMacEsq replied 2 years ago.
Did you have any other questions before you rate this answer?
Expert:  ScottyMacEsq replied 2 years ago.
Hello?