Risk
Are Sweepstakes Legal?
Sweepstakes business is a controversial business. It is legal in Texas if conducted properly. However, there is always the risk that the laws or rules could be changed by Texas Legislature and the entire business could go away. In the last 15 years, there has been proposed legislation presented to Texas lawmakers that would put Sweepstakes in the same category as 8-Liners and other gambling machines. There is also the risk of local law enforcement confusing Sweepstakes machines as gambling devices and acting too hastily and raiding the business and confiscating the machines and even arresting people. In all cases, when Sweepstakes were involved, charges were dropped, and cases dismissed, and machines returned. However, there have been successful prosecutions in Texas for people operating internet cafes and, of course, these make juicy stories that get on the headlines and sell papers.
