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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 116816
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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What are the guidelines legal sports picks? can one sell

Customer Question

Customer: What are the guidelines for selling legal sports picks? For example can one sell sports picks and invoice them based on how much they win? Or does it have to be a flat fee? Subscription base
JA: Thanks. Can you give me any more details about your issue?
Customer: Just curious on operating a legal sports advisory and what the guidelines. It's my understanding that it is NOT illegal to sell sports picks. A lot of people do However, do they need a disclaimer (For example, they are selling entertaiment not gambling advice)?
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Submitted: 1 year ago.
Category: Legal
Customer: replied 1 year ago.
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
The providing of "sports picks" is not illegal gambling and it is nothing more than providing of educational information. There is no legal requirement that a disclaimer be used, but it is prudent to inform the customers that the seller takes no liability for the information provided and it is provided for entertainment purposes only and the seller does not advocate or engage in taking wagers or bets on any sporting event. Providing information to consumers is not regulated as long as you are not misrepresenting the information or taking bets.
Customer: replied 1 year ago.
Thus, could one invoice customers for sports picks advice ("Entertainment"), based on the outcome of games?
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
If you charge based on outcome of the games, then you are participating in gambling, since you are saying that you are giving them the information for them to place bets and you then are an accessory to gambling despite what you say in your disclaimer.
Customer: replied 1 year ago.
Thus, what are the guidelines? Does that mean you can only sell picks for a flat fee?
Customer: replied 1 year ago.
Can't you refund money if the picks lose?
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
If you choose to guarantee the accuracy of your picks you can do so and you sell them for a flat fee. Not many sport pick companies give such a flat out guarantee, they simply charge a flat fee for the picks and do not get involved in whether they win or lose.
Customer: replied 1 year ago.
I'm sorry, I'm having a hard time understanding how one is different from the other (gurantee refund vs invoice based on wins). Essentially, both options profit based on the outcome of games.
Customer: replied 1 year ago.
FOR EXAMPLE:Seller provides 10 picks (7 win & 3 lose). Can a seller:1.) Invoice a customer $100/Unit? Totaling $400 for +4.0 units
2.) Invoice a customer for 10 picks totaling $57/each ($570) with a $170 refund for the games they lost (Moneyback Guarantee)?
3.) Invoice a customer $400 for a 10 picks
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
Most places guarantee free picks if their overall picks do not win. You can offer money back if your overall picks do not do what you say they will do. So you can give that type of a guarantee, not based on what the customer bets, but based on the overall success of your picks and not be involved with any gambling.
Customer: replied 1 year ago.
I'm sorry, I'm still having a hard time differentiating things. I'm not interested in how other Tout's operate, but rather what the law allows. I provided 3 examples on how a Seller could charge a customer for picks. Are all 3 examples illegal, none example illegal, or some examples illegal? Thank you.
Expert:  Law Educator, Esq. replied 1 year ago.
thank you for your reply.
The law will allow you to offer a money back guarantee based on the success or quality of your picks. The law will not allow you to offer a money back guarantee on the nature of any bets made by the consumer. So what you say above is legal as long as it is not tied to bets actually placed by the customer.
Customer: replied 1 year ago.
Thus, how could a seller legally sell sports picks based on the number of positive units their picks generated (Example 1)?What does the seller have to specify or disclaim prior to selling or providing the picks? How should the disclaimer be worded so as to protect the seller from the law and differentiate gambling from the service they are providing.
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
If they pay for 10 picks and 7 win, then you can make the customer pay for only the 7 winning picks at the price you set. So your guarantee could legally be "You pay only for winning picks of the service." This is not saying they pay only if they bet and win, it says if you pick a winner and have given it to them, they have to pay for it whether they bet on it or not.
I told you above though what the disclaimer should say, that is still valid.
Customer: replied 1 year ago.
how could the disclaimer or guarantee be worded so the Seller could legally charge a customer $100/Unit? Similar to Example 1.Seller provides 4 picks to a CustomerTeam A @ -110 (WIN)
Team B @ -110 (WIN)
Team C @ -110 (LOSS)
Team D @ -110 (WIN)TOTAL UNITS = +1.90 Units
INVOICE = $190 ($100 x +1.90)
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
You can tell them that they would pay only for your picks that win and it could be done just as you have laid it out above.