Is the website video2mp3.net legal?

How does website like pogo, swagbucks and other similar website stay away from legal issues with online gambling laws?

• I am thinking about creating a certain type of gaming site where people can play poker and other games against other players. I want to give out out tokens (virtual currency) when people play the games. And players can redeem them into prizes/gift cards. Would this run into trouble with gambling laws? Some people I have ran the idea past said that I might have some legal problems. Kind of similar to swagbuck and other sites nothing really new. SwagBuck>> User fill out offers, play games, survey, search and watch videos>>Users receive SB(virtual currency)>> User redeem this for gift cards(usually) and other prizes. How does SB and other similar website stay away from legal issues involving online gambling?

• Answer:

  In order to be considered gambling, there must be three elements: 1) Consideration players must pay something of value to participate. 2) Prize players must receive something of tangible value. 3) Chance means the outcome is not determined by skill. Its all open to interpretation, but swagbucks can claim they avoid #1 & #3 because players don't pay them money to participate and the games or surveys can be classified as skill-based outcomes. Another example is Zynga - they avoid #2, since the only prize you get from their games are zynga credits, and they can't be redeemed for tangible currency or rewards (as far as I know)