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US Laws Regarding Organizations That Award Cash Prizes
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Anyone have knowledge in the US laws regarding the ability for an organization to facilitate cash prize awards for tournament competitions?

Quote:1982: In New York City, backgammon is not considered a game of chance. According to Armando Flores, of the city public morals division, his office would not prosecute backgammon as gambling.  Search

The determination is whether skill or chance is the dominant element. Skill requires:
  • A Developed or Practicable Ability
  • Strategy or Tactic
  • Physical Coordination
  • Technical Prowess
  • Knowledge of How to Accomplish A Task

As a guide, if the outcome can be improved by practice and experience, even if there is still an element of chance, it's a game of skill.

So, poker, chess, backgammon, checkers, pool, darts, cricket, football, athletics, boxing, and even horse racing are all games of skill. Awarding prizes on the outcome of those events is not gambling.

However, placing side bets on the outcome is gambling.

To participate in a cash-prize tournament, players must meet certain requirements, such as being a certain age or having a certain level of skill. Players are required to pay an entry fee in order to participate.

The tournament would be made up of gammon match play of specific length and rule-set.



References:
Where is the line between game of chance (gambling) and game of skill?
An interesting court case that decided whether the game of Backgammon was a game of Skill or a game of Luck
Strategy or Chance
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