Which US States Regulate Contests-of-Skill with an Entry Fee and Scaling Prizes?

Question from T, Which US States Regulate Contests-of-Skill with an Entry Fee and Scaling Prizes?

Answer from AI:

In the United States, the regulation of contests-of-skill, particularly those with an entry fee and prizes that scale with the entry fees, varies by state. These contests are often considered a form of gambling, which is heavily regulated at the state level.

General Legal Framework

The general legal framework for these contests is based on the distinction between games of chance and games of skill. Games of chance are typically considered gambling and are more heavily regulated. In contrast, games of skill, where the outcome is determined more by the participants’ skill than by chance, are often exempt from gambling laws. However, when an entry fee is required and the prize scales with the entry fees, even games of skill can be subject to gambling regulations.

States with Specific Regulations

While it’s difficult to provide a comprehensive list of all states that regulate contests-of-skill with an entry fee and scaling prizes, here are a few examples:

• Arizona: Arizona law generally prohibits gambling, with exceptions for certain regulated activities. Contests of skill are not explicitly exempted, and the law could be interpreted to cover such contests if they involve an entry fee and prizes.
• Arkansas: Arkansas law allows for contests of skill, but if the contest involves an entry fee and prizes, it may be considered a lottery and thus illegal.
• Delaware: Delaware law prohibits gambling, including contests of skill that involve an entry fee and prizes.
• Florida: Florida law allows for contests of skill, but if the contest involves an entry fee and prizes, it may be considered a lottery and thus illegal.

Consulting a Legal Professional

Given the complexity and variability of state laws, it’s crucial to consult with a legal professional if you’re considering organizing or participating in a contest-of-skill with an entry fee and scaling prizes. A lawyer can help you understand the specific laws in your state and ensure that your contest is legal.

For more information on gambling laws in the United States, you can visit the American Gaming Association’s guide to state gaming statutes.

Please note that this information is intended to provide a general overview and may not be comprehensive. Always consult with a legal professional for advice tailored to your specific circumstances.