The world of sweepstakes is a rich source of cases to study. Legal opinions that allow operators to go live in the rich American market can generate substantial profits.
And also a lot of legal problems!
America certainly is extremely unique in terms of how legal intricacies work. Foreign companies and executives trying their luck in America must be very attentive to how things work. I’m not just talking about the “lawyer up” culture, which extends to how easily AGs and state AGs might sue non-compliant companies.
Everything needs to be well-documented, not to mention the rigor of tax law. Even if an operator finds a legal loophole to operate in a gray American market, poor attention to bookkeeping and how salaries are paid to employees based in America can also generate a lot of issues.
And how about “highly original” legal opinions? Albumza surely tried a new way of doing business.
Essentially, the operator claims to be a platform that sells digital collectibles. All the sweepstakes casino-like products are technically a secondary consequence of said “e-commerce” activity.
It’s very interesting to notice how some affiliates claim that Albumza is the only active sweepstakes operator in California and New York, but the operator itself calls it anything but.
Mature real-money markets also come with strict regulations for affiliates themselves. So the “iteration” of being an affiliate to a brand-new “interpretation” of a potential way to operate in the extremely rich markets of California and New York certainly represents things that AGs need to “catch up with.”
For now, Albumza is live with a very particular business model focused on low tickets, a lot of friction, extremely limited email CS, and affiliates claiming things that, in my opinion, are very dangerous to the operator itself.
More to follow on the subject!
Leave a Reply