is-x-legal gambling
Would a free lottery app be legal in the US and most countries?
<p>Suppose that a developer builds  an application that Is similar to a lottery app, the only difference is that a user will gain a ticket for watching ads (E.G videos, banners) and it will give the winner a small sum ($10-$100) if they win.</p>
<p>Would such an application be legal?</p>

<p>This would probably be legally considered &quot;gambling' Gam,bling is prohibited in many US states and a good many non-US jurisdictions. It is significantly regulated in most US jurisdictions where it is legal, often requiring a specific license.</p>
<p>Analyzing laws on this subject in all 50 US states would be beyond the scope of an answer here. This is definitional the sort of thing where consulting a local lawyer, experienced in this area of law, would be wise.</p>
<h2>Maryland law</h2>
<p>As an example I will cite the specific laws which I think woulds apply to the situation described n the question in teh US state oof Maryland.</p>
<p>The Maryland criminal code <a href="https://law.justia.com/codes/maryland/2010/criminal-law/title-12/subtitle-2/12-201/" rel="nofollow noreferrer">Section 12-201</a> provides that:</p>
<blockquote>
<p>In this subtitle, &quot;lottery device&quot; means a policy, certificate, or other thing by which a person promises or guarantees that a number, character, ticket, or certificate will, when an event or contingency occurs, entitle the purchaser or holder to receive money, property, or evidence of debt.</p>
</blockquote>
<p>Thus an entry or ticket issues by such an app, would be  &quot;lottery device&quot; if winners were paid in money or things exchangeable for money or property, which would include gift cards.</p>
<p><a href="https://law.justia.com/codes/maryland/2010/criminal-law/title-12/subtitle-2/12-203/" rel="nofollow noreferrer">Section 12-203</a> provides that:</p>
<blockquote>
<p>(a)  Prohibited.- A person may not:</p>
<p>(a) (1) hold a lottery in this State; or</p>
<p>(a) (2) sell a lottery device in the State for a lottery drawn in this State or elsewhere.</p>
</blockquote>
<p><a href="https://law.justia.com/codes/maryland/2010/criminal-law/title-12/subtitle-2/12-205/" rel="nofollow noreferrer">Section 12-205</a> provides that:</p>
<blockquote>
<p>(b)  Prohibited.- A person may not:</p>
</blockquote>
<blockquote>
<p>(b)(1) bring a lottery device into the State; or</p>
<p>(b)(2) possess a book, list, slip, or record of:</p>
<p>(b)(2)(i) the numbers drawn in a lottery in this State or another state or country;</p>
<p>(b)(2)(ii) a lottery device; or</p>
<p>(b)(2)(iii) money received or to be received from the sale of a lottery device.</p>
</blockquote>
<p><a href="https://law.justia.com/codes/maryland/2010/criminal-law/title-12/subtitle-2/12-206/" rel="nofollow noreferrer">Section 12-206</a> provides that:</p>
<blockquote>
<p>b)  Prohibited.- A person may not print, write, or publish an account of a lottery that describes:</p>
<p>(b)(1) when or where the lottery is to be drawn;</p>
<p>(b)(2) any prize available in the lottery;</p>
<p>(b)(3) the price of a lottery ticket or share of a lottery ticket; or</p>
<p>(b)(4) where a lottery ticket may be obtained.</p>
</blockquote>
<p>Most plausible ways to advertise an app as described in the question would seem to violate this section.</p>
<p><a href="https://law.justia.com/codes/maryland/2010/criminal-law/title-12/subtitle-2/12-208/" rel="nofollow noreferrer">Section 12-208</a> provides that:</p>
<blockquote>
<p>A court shall interpret §§ 12-201 through 12-207 of this subtitle liberally to treat as a lottery ticket any ticket, part of a ticket, or lottery device by which money is paid or another item is delivered when, in the nature of a lottery, an event or contingency occurs.</p>
</blockquote>
<p>So if it is arguably a lottery, the court will treat it as one.</p>
<p><a href="https://law.justia.com/codes/maryland/2010/criminal-law/title-12/subtitle-2/12-209/" rel="nofollow noreferrer">Section 12-209</a> provides that:</p>
<blockquote>
<p>A grant, bargain, or transfer of real estate, goods, a right of action, or personal property is void if it occurs while engaging in, or aiding or assisting in a lottery.</p>
</blockquote>
<p>So winners cannot lawfully collect prizes.</p>
<p>In short any such app would seem to viol;ate several sections of Maryland law if it is used of promoted in Maryland</p>
