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Can I give away small cash prizes to contest winners foreign and, or national?

Elmont, NY |

Would I be in violation of any law(s) ie, gambling if I decide to satisfy my contest winners with small cash prizes? I plan on running a social network/ video, photo contest website. Also would I be able to satisfy those winners of foreign countries, or locations if I decide to satisfy them by giving away small cash prizes or prizes of any sort?

Let me also say that there's no payment requirement to become a member nor to take part in any particular contest. Free membership, free to participate in contest.

Attorney Answers 1


  1. This sounds more like a contest than gambling. Each state has rules on this, but generally even small operators can comply. Take a look at the sort of disclaimers and rules that other websites use and you will have a good start on the situation.