When is a product considered online gambling?
 

When is something considered gambling online? If you pay money to enter a madden tourney and the winner takes it...is that gambling? Anyone know where the US Gov. draws the line on stuff like this?

A game of chance is gambling and a game of skill is not. A video game with a prize based on you getting to a certain level is a game of skill.

If you exchange money for a chance to win something with no guarantees, that is gambling.

Google's "define" is great :)

http://www.google.com/search?num=30&...efine:gambling

the act of playing for stakes in the hope of winning (including the payment of a price for a chance to win a prize); "his gambling cost him a fortune"; "there was heavy play at the blackjack table"

Well you could say that poker IS NOT gambling if that were the case....

Technically, if you pay money for any sort of chance, be it a raffle ticket, a pool, bingo, anything like that - you're suppose to have a license and abide by the rules in the area where you live. Even a contest where you don't pay anything has all sorts of legal issues attached, but as soon as you start taking in money the government is going to be interested.

Cyn