Legal Question in Entertainment Law in California
Gumball Machines considered Gambling if they vend coupons AS WELL as candy?
Is a gumball machine that vends gumballs and coupons or gift certificates a form of gambling as there is some form of chance in obtaining a higher prize. Where does the line get drawn interms of the winning item. I believe a cash prize would be gambling as cash was exchanged but is a Gift Cert considered Cash if it is for a specific good free of charge? All items that a consumer could possibly win would be displayed on the outside of the machine. The consumer would place .25c into the machine and it would vend either of the choices.
I researched the penal code but found it vague in what can be rewarded. it claims merchandise is considered gambling so long as not attributed to skill. I wish to obtain clarification on this matter. Thank you.
1 Answer from Attorneys
Re: Gumball Machines considered Gambling if they vend coupons AS WELL as candy?
Lotteries are illegal which is why most commercial promotions provide that no purchase is necessary. In other words, stick to gumballs.