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Start up: Business/legal issue

  • 07-04-2013 3:52am
    #1
    bierhoff1
    Registered Users, Registered Users 2 Posts: 33 ✭


    I am on the verge (or at least at an advanced stage) of opening an online business. Basically it is an online game.
    I am wondering if I monitise it do I need a gambling/lottery/gaming license.
    Worst case scenario on the monitised side of the site it acts only slightly, ever so slightly similar to a betting exchange. I will explain. I have checked a lot of laws and I can't see my idea exactly fitting under any gambling law.

    The two ways the site is monitised is:
    1. A league is created in the game which requires an entry fee to enter. Website holds entry fees, takes a commish & gives the winner(s) the winnings.
    2. A challenge takes place between 2 clients, website takes commission & winner takes money. (no odds or anything)

    I don't class this as gambling & I have read a few articles that support my synopsis.

    Any advice would be greatly appreciated..

    If this is classed as gambling would the isle of man or another country be a better place to host this business & what other things should I consider?

    Also I may be seeking investors so if this has triggered anyone's interest & has some dough (and preferably some knowledge) burning a hole in their pocket get in touch. :-)


Comments

  • #2
    Brendan Flowers
    Registered Users, Registered Users 2 Posts: 1,385 ✭✭✭Brendan Flowers


    Hi Bierhoff, did you make any progress since you posted this? I had a similar question a few weeks ago and I got the following reply from RATM:
    RATM wrote: »
    There's a few distinctions in the gambling field that are important. One such stipulation is that it is NOT gambling if there is an element of skill to the game. This is why RTE have text in competitions with dumb questions on them like 'What is the capital of Ireland' , "Dubai, Dublin or Detroit". As funny as it may seem that question is deemed to have an element of skill to it and is not just an element of chance which is what would make it gambling.

    So if RTE say just text this number to enter the competition then that is gambling. But if they put a dumb question onto the process then it isn't gambling, it is a 'game of skill'.


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