Hello,
In this post I’d like to mention in brief the legal aspect of operating an online gambling game for real money.
I consulted with Mr. John Hagan from http://www.harrishagan.com
He shared with me interesting things about the subject. apparently the regulations subject is big and complex and there is much more in it. I put here some of the basic things that we discussed:
Gambling Regulation
Under UK gambling laws, any game involving any element of chance which offers prizes is likely to be classed as gambling. It makes no difference whether the prize on offer is money or a product which has some value (“money’s worth”).
A premium rate SMS would normally be regarded as a payment to enter, despite the fact that money is not deposited in the usual way. A basic rate SMS may not be regarded as a payment to enter, but a game can, in fact, still be classed as gambling despite there being no payment to take part.
Laws in other countries do vary, however as a general rule, games based on a random number generator will be classed as gambling if there are prizes on offer and participants must pay to take part (whether directly, by premium rate SMS or other means).
A limit on the number of games that may be entered per year would not prevent the product from being gambling, although this would be socially responsible.
A license would be required to operate a game and this is likely to be the case in most other countries as well.
These answers do not constitute legal advice and may not apply to your individual circumstances.
Thanks Mr. Hagan