ARE INTERNET SWEEPSTAKES LEGAL IN MY CITY, COUNTY OR STATE ?
Each municipality has different rules that govern sweepstakes. We can not offer legal advice. Please contact a qualified professional in your area for legal consultation
ARE INTERNET SWEEPSTAKES GAMES CONSIDERED GAMBLING OR A LOTTERY ?
Generally, for an act to be considered gambling, or a lottery, it must have 3 specific components of play.
1st - there must be a “Prize.”
2nd - there must be “Chance.” involved.
3rd - there must be “Consideration.” (pay)
For an act to be considered gambling, by general definition, a player must “pay” (aka Consideration) to be included in the act/game. Sweepstakes games are different from traditional gaming in a several ways. Traditional gambling and sweepstakes both have a “Prize” involved, whether monetary winnings or something else such as a cheeseburger, washing machine, a car or a vacation.
Sweepstakes differ from gambling, by general definition, because they do NOT require a purchase to “WIN” the “Prize.” For example : When a customer walks into McDonald’s and makes a purchase he/she sometimes receives a Monopoly game piece (for free) and has a “Chance” to win a “Prize.”
Note : The customer did not make the purchase to enter the sweepstakes, he or she purchased the product and was given the free entry to the sweepstakes. This is an example of the free entry.
For an act/game to be considered a sweepstakes it must have :
1) No Purchase Necessary. There has to be a way for a player to obtain free entries into the sweepstakes, generally this is done by mail, there are also other ways of entry.
2) A Predetermined Pool of Prizes. Sweepstakes games do not employ “chance” in the outcome. There are clearly defined numbers of entries and clearly defined numbers of winners which are predetermined before the sweepstakes starts. This is also called a “finite sweepstakes”
3) There MUST be a start date and end date and these rules must be posted.
NOTE : Different States and municipalities have different laws that may govern sweepstakes rules so we suggest to check with your legal counsel to confirm before you proceed.
WHAT IS A FINITE SWEEPSTAKES / PREDETERMINED WINNERS ?
All sweepstakes games have a Pay-Table.
To help you understand what a predetermined outcome is and why this would exclude sweepstakes as having an element of “chance” please consider the following example:
A company that is promoting a sweepstakes decides that it will have 100,000 entries into the upcoming sweepstakes, of those 100,000 TOTAL ENTRIES:
(1) will be worth a “Grand Prize,”
(10) will be worth a slightly smaller prize,
(100) will have a slightly smaller prize
(1000) will have a slightly smaller prize
(5000) will have a slightly smaller prize
(10000) will have a slightly smaller prize
(30000) will have a slightly smaller prize
(53,889) will NOT will be winners at all
100,000 = TOTAL ENTRIES
NOTE : The above example is why a sweepstakes do not involve the element of “chance” which is (1) of the (3) components needed for an act to be considered gambling and why the term “predetermined winners” and “Finite Sweepstakes” is relevant to this section.
How much does it cost to get started?
Like all business start-ups, there are various costs associated with getting a business started. Fortunately, We have been doing this long enough that we can keep your costs as low as possible as you start your internet sweepstakes business. We also help you decide what will work best for your business, whether it’s owning your own equipment and enjoying a lower revenue share, or leasing the equipment from us (and letting us handle any equipment issues that arise) for a slightly higher revenue share.
How much money can I expect to make?
Just as with any other business, there are a number of factors that affect how much profit can be made. Here are some of the best points :
1) You want the best location possible located near your targeted demographic.
2) You want to run your Internet Sweepstakes Cafe as professionally as possible.
3) You want people to feel safe and comfortable in your place of business.
4) You want to run your business in such a way that makes people want to come back.
5) You want a good mix of Marketing, Promotions and Personality.
Note : Some businesses are profitable very quickly, others take a longer, but either way an Internet Sweepstakes Cafe can be a very successful business.
What is the difference between purchasing our equipment, using your own equipment or leasing equipment from us ?
There are different benefits to all options. Simply stated if you own your own equipment you receive a greater revenue share of net profits and if you lease the equipment from us, you keep slightly less of the revenue share.
If you own your own equipment :
1) Your upfront costs will be lower because you already own the equipment (not all equipment will meet minimum specs so this option is not guaranteed)
2) You are responsible for making sure each unit meet the necessary requirements to fulfill software specifications.
3) Installation may take longer because because the software will have to be downloaded to the equipment and all the gaming stations may need to be correctly networked.
4) Because we would need to travel to your location, a installation fee will be required.
Note : If one of your units goes down, you are responsible for repair or replacing it.
If you choose to use our equipment, whether you BUY IT or LEASE IT :
1) We’ll ship or deliver it to your site ready to go.
2) We already have the machines loaded with our software so it’s ready to plug and play
3) We test everything before it leaves our location so you know it will work when it arrives.
4) If there are any issues with any of the machines, it is our responsibility to repair or replace it.
NOTE : Qualifications for Equipment Lease may vary depending on many factors such as; location and applicant credit status.
OWN IT OR LEASE IT YOU STILL GET
24/ 7 TECHNICAL SUPPORT
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