Do i need a license? - New start-up

Discussion in 'Starting a Business' started by AndySimpson, Mar 19, 2013.

  1. AndySimpson

    AndySimpson
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    Hello,

    I am curious to know if i require a license for a 'quick return' business - which is as follows:

    The model is around the traditional lottery. People pick a 'ticket' and if there ticket wins - they get the prize. However, the payout isn't until all tickets have been sold and therefore i don't have the risk of paying out a prize that i don't have. The prize is 10% of the total sales i make from the 'tickets'.

    I think this takes me out of any insurance problems, as the insurance (as far as i know) is to cover your back should somebody win a prize that you can't afford to pay?

    I am wondering if i will need a gambling license?

    *This is an online business*

    Thanks to everybody that takes the time to read and reply,

    Andy.
     
  2. Fergal

    Fergal
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    Andy, what country would you be setting up the business in?

    Most countries have very strict rules on running contests, where the participant has to buy something or otherwise pay money in order to enter.
     
  3. Rocky

    Rocky
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    For any kind of business where you generate profit you do need some sort of license. In your case an additional one for gambling might be needed depending upon your location.
     
  4. scifi

    scifi
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    It depends on the cyber laws and regulations in your country.....however I think you can club this with some kind of offering ...like some product and include prices of both in the selling price.....this way you can achieve your target as well as get rid of any hurdle of taking license...

    I think you got my point....enjoy...
     
  5. kimmy burgess

    kimmy burgess
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    It all depends upon your location and business. Some countries have very strict rules regarding this. Do not take any risks as you are starting a new business. You don't want to spoil it by just making small mistakes.
     

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