Is this Online Gambling?

[P.V.]

I see that my home state of TN launched a site called TN VIP Suite and one of the features on the site is that you can enter loosing scratch ticket numbers for a second chance to win cash and prizes.

Online gambling by definition from Wikipedia states the following:

Gambling is the wagering of money or something of material value (referred to as "the stakes") on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods. Typically, the outcome of the wager is evident within a short period.

You can't purchase scratch tickets on the lottery website but IMO a loosing ticket is something of material value with the outcome of possibly winning something as stated by definition.

Now I see why, what I call trash can diving, whenever I'm at a convenience store I see people pop in and rummage through the trash containers looking for discarded scratch tickets.

So is this online gambling? TN isn't the only state doing this BTY. I think it is, JMO.

What do you think??

[Nifty29]

Well, I'm not sure that a losing scratch ticket qualifies as something of material value, given that if the person didn't buy the losing ticket then they are not risking anything at all.

I guess the argument would be what the value of a losing scratch ticket is.

[ksech]

Also, it raises the question in my mind, would these second chance winnings be taxable if they are in the form of a material prize (instead of the monetary prize)?

[P.V.]

I guess they can offer certain types of online gambling, learn something new every day.

Here's what I found.

(1) The type of games to be conducted, including, but not limited to, instant lotteries, online games, and other games traditional to the lottery. Such games may include the selling of tickets or shares, or the use of electronic or mechanical devices; provided, however, that the board shall not approve, and the corporation shall not operate, a video lottery as defined in § 4-51-102(8)(B);

http://law.justia.com/codes/tennesse...rt-1/4-51-108/

[bb28]

Most states have some form of 2nd chance thing going on with the scratchers. I've read you have better odds on the 2nd chance drawings than the original game.

Lotteries and scratch cards are the scrooge of gambling in my opinion. State and federally sanctioned with a chance to break even (if you are lucky). If the stats are correct, the people that can least afford it are the ones who spend the most on lottery tickets and scratchcards.

IMO you are much better off pissing your money away on slots. At least you have some better odds in that you will likely do better than break even.

[Nifty29]

Our lottery has just launched the first $1 million scratchie for $20 a ticket. I haven't checked how many tickets are printed but the odds aren't too bad on comparison to most others.

I don't think they have a second chance either.

[P.V.]

Most states have some form of 2nd chance thing going on with the scratchers. I've read you have better odds on the 2nd chance drawings than the original game.

It does appear the second chance is becoming a huge thing. I've notice lately that many states are launching a different site for the second chance game, adding free games to play etc..

Looks like they might positioning them self for future online legalization and trends. You know, already starting their online base.

TN has around 150,000. VIP players registered so far.

[P.V.]

Our lottery has just launched the first $1 million scratchie for $20 a ticket. I haven't checked how many tickets are printed but the odds aren't too bad on comparison to most others.

I don't think they have a second chance either.

And someone who's never gambled before in their life will purchase a $20.00 ticket and win the million bucks.

[bb28]

It does appear the second chance is becoming a huge thing. I've notice lately that many states are launching a different site for the second chance game, adding free games to play etc..

Looks like they might positioning them self for future online legalization and trends. You know, already starting their online base.

TN has around 150,000. VIP players registered so far.

You are right, they probably are getting ready for it. They have to get their piece of the pie.

[JAMES50]

Also, it raises the question in my mind, would these second chance winnings be taxable if they are in the form of a material prize (instead of the monetary prize)?

Yes it is taxable...I won a cruise on the oasis,,withtravel and hotel w/2000 on board credit on a second chance drawing..Total value 10.500.00 was taxed about 2000.00,, in the state of florida..You are federally taxed here on anything given to you over 600.00... wether money or prize worth that much...