Legal Question in Business Law in California

Re: legal requirements for reporting payments

Make very sure you understand all the laws regulating this area, to avoid potential jail time and substantial civil penalties. Imagine yourself doing the 'perp walk' in handcuffs to keep your mind focused on compliance with the very strict laws you must obey. Since you obviously don't understand the complexity and danger of the situation, get experienced local counsel.

Re: legal requirements for reporting payments

Contests are regulated by statute and ordinances. The clear example of not following the law would be to hold a contest and not paying the award.

Re: legal requirements for reporting payments

absolutely. be VERY careful here, as such "contests or awards" are deeply regulated, and you can open yourself up to liability you might not have even dreamed of before. there are very strict codes and guidelines you will have to adhere to in order to do what you are doing LEGALLY. your best OPTION here would be to retain an attorney in getting you set up properly and ensuring your follow the codes in place regulating such industries. alot of companies/websites do such things wrecklessly without finding out their liability until it is far too late. you definitely do not want to be in this position, civilly or criminally. if you would like further assistance, contact us today.

Re: legal requirements for reporting payments

I suspect that your question involves scheme number 129,557 for an illegal lottery, whether you realize it or not. You should start by reading Penal Code sections 319 (definition of a lottery); skim 319.3 through 328 regarding various illegal activities; and then look at P.C. 330 through 337z covering "gaming" in enough depth to catch the spirit of the law with respect to what's illegal.

My point is that I'm 90% sure that what you're artfully describing is an illegal lottery or game, whatever you call it; the authorities will not be interested in the fine distinction you make between why money is paid in and why it is (perhaps) paid out to some and not to others.

The laws against gaming are expanded and applied to newly-invented or newly-described games as fast as the promoters roll them out; whether it's conducted on the Web or in a smoke-filled room at the back of the Waterfront Tavern makes no diffeence at all.