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Expert Analysis

Lottery Laws And SMS Sweepstakes

Law360, New York (January 26, 2012, 1:11 PM EST) -- NBCUniversal Media LLC, FOX Broadcasting Co. and other defendants reached a multimillion-dollar settlement with plaintiffs in multiple California class actions alleging that "American Idol" and "Deal Or No Deal" SMS sweepstakes were illegal lotteries. The settlement — which was approved by a California federal district court on Dec. 20, 2011 — marks the end of over four years of litigation and highlights the significant financial liability that sponsors and related companies could face if their promotions (contests and sweepstakes) are not carefully structured to avoid potentially violating lottery and gambling laws....

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