“Internet Sweepstakes: Online Gambling or Harmless Promotion?”

With online gambling becoming such a popular activity, it should come as no surprise that sweepstakes games have made their way to the Internet too. Of course, Internet gambling is illegal in the U.S. and there are those that would argue that online sweepstakes are just another form of online gambling. A case in point is the state of Wyoming, which is split on whether sweepstakes should be legal. Wyoming is presently one of only eight states that offer online sweepstakes games, but Wyoming’s Attorney General believes it is just another form of gambling and, therefore, illegal and should not be permitted.

The sweepstakes games are offered by phone card companies as a promotional gimmick to enhance sales. These companies offer customers the chance to play sweepstakes games whenever they purchase an Internet combo package at an Internet café. Included in the package is Internet time, a phone card, and sweepstakes points. The points that the phone card company gives can only be used to play sweepstakes games at the cafe in which they were purchased and are not redeemable for cash. Any additional sweepstakes points earned, however, are redeemable for cash or prizes. This is why Wyoming’s Attorney General believes that playing sweepstakes is basically a gambling activity. Even the sweepstakes games themselves are very similar to the games offered at online gambling sites. Sweepstakes operators, however, are quick to try and differentiate their games from regular gambling activities.

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