An Internet sweepstakes parlor is an establishment that offers games of chance with prizes in conjunction with other services, like Internet access or telephone cards. Although often seen as gambling, owners of sweepstakes parlors claim to be operating under sweepstakes laws and are thus legal because the winners are predetermined and the entries are offered in conjunction with the purchase of a product. According to these various laws, sweepstakes parlors do not meet a traditional test for gambling:
1. Prize;
2. Chance; and
3. Consideration.
Advertising Must Follow State and Federal Laws
Laws on sweepstakes parlors continue to change and evolve, but a nationwide trend disfavoring Sweepstakes Parlors continues. In Ohio, a recently-enacted law puts a moratorium on new Internet sweepstakes parlors and requires any existing ones to register as an Internet sweepstakes parlor.
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