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Online Lotteries: Risky Business?5 May 2004CALIFORNIA -- As reported by the PC World: ``The lotto mantra that "You've got to play to win" means little when you're eyeing the California jackpot and you live in Rhode Island. But a Web site called Lottery Universe, run by Houston, Texas-based Avatar Group, says it has a way anyone online can play the Texas state lottery as well as California's and a handful of other states, no matter where they live. ``The only problem: Federal law forbids reselling lottery tickets. Avatar, which has been in business for over two years, maintains Lottery Universe is legal because it acts only as a "service agent" that buys tickets for you through normal channels, and doesn't actually sell lottery tickets, says John Feldman, an attorney representing Avatar. ``…But the difference, say numerous state attorneys general (including Florida's), is that it's illegal to charge or accept a fee to cross state lines to buy a lottery ticket for someone else. Only authorized retailers can sell lottery tickets, they say. You can buy one for a friend, but you're not supposed to charge them for it. For its part, Avatar maintains that the ticket isn't resold, and it never leaves the state. ``The Texas State Lottery Commission is among those that disagree with Avatar's view. It submitted a report to the Harris County District Attorney's office last year alleging that Avatar violates the Texas State Lottery Act by acting as a middleman--selling state lottery tickets above face value--which would be a third-degree felony. ``Feldman says Avatar assesses a handling fee. The Harris County DA's office is investigating the case and has not yet determined whether Avatar is breaking Texas law…" |