What should an online business know before sending virtual gift cards to their customers?

UPDATED: Oct 1, 2022

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What should an online business know before sending virtual gift cards to their customers?


We are interested in making a mobile app where people could play various short
mini-games the wheel of fortune, scratch tickets, etc. and collect virtual
points. As soon as they get a certain amount of points, they could exchange them
for a digital prize Amazon, Paypal, eBay gift card. New Link Destination
collect the prize, the
person should put their email and then we would send it to them.

We would like to know if it’s legal to do this kind of activity and what should
we know before making our project.

Thank you

Asked on January 18, 2018 under Business Law, Alaska


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

This would not be legal if there any chance element to the outcome or resolution of the games. If there is a chance element, this would constitute gambling and would illegal under Alaska law, which only allows certain limited social gambling, charitable gambling, state lottery(ies), and Native American gambling. It is gambling when a prize may be won in part or whole based on chance.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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