Lawsuits Allege SMS Voting Is An Illegal Lottery
I’ve been expecting something like this since the controversy in England... This is slightly different however. The lawsuits in the United States allege that the SMS voting components of TV shows The Apprentice, Deal or No Deal and One vs 100 constitute illegal lotteries because people who enter via message pay a 99c premium to do so and don’t receive anything in return. In other places offering the ability to enter for free seems to get around the rule, but the article implies that isn’t the case here—in order to get around the illegal lottery rule the shows should have offered something in return for the 99c premium, such as a wallpaper or ringtone reports RCR News. So while this could have a serious impact on some of the companies named in the lawsuit, if offering even a wallpaper of the shows brand is enough to get around the laws it shouldn’t inhibit the industry too much.
SEE ALSO: Deal Or No Deal Bumps Up Premium SMS Revenue, Volume
Voting or sweepstakes with premium SMS in the US brought in $35.4 million in the first quarter according to Telephia. This year 609 million votes were cast by either SMS or calling a toll-free line for American Idol.
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