Legal Question in Technology Law in New York

Re: Multi Channel Lottery Sales

This is obviously a question mainly of US Federal Law with some State input in terms of point of sales issues. We have been involved in a similar product in the UK and even with a relatively small unified jurisdiction the regulatory advice, mostly legal, ran into six figures in no time. Sorry to sound less than positive but I think you may want to at least consider a partnering arrangement with someone who has existing resources/business in this area.

Re: Multi Channel Lottery Sales

You should be aware that in the US gaming rules are state-by-state so you need an answer from 51 jurisdictions (the 50 states plus the District of Columbia). That said, it is easy enough to determine which states represent the most important from a gaming perspective (i.e. which state(s) represent the most dollar-volume for such games) and to determine their rules/regs in this regard.

Of course, the above means that no clear-cut answer can be given easily. However, if you are interested in having the economic/legal analysis done, my firm specializes in this nexus of economics and the law. We'd be happy to discuss this with your company and to provide you the answers you seek. Feel free to contact my office at 212.366.1324. By the way, I do have an associate in the UK who could act as a local liason if such becomes advisable.

Whether you call on us or not, I wish you the best of luck: we love telecoms solutions to everyday problems and sounds like your company has a winner on its hands -- no pun intended!

John Friedman

Re: Multi Channel Lottery Sales

In addition to the various applicable state laws, there are also federal laws which may bear significantly on what your company seeks to do. For example, federal authorities have been able to successfully use the Wire Wager Act (which was originally enacted to address sports wagers conducted by telephone) to go after Internet gambling enterprises. There may also be federal laws dealing specifically with the interstate sale of lottery tickets, which may be relevant.