Business Loses Bet For 1.2 Million Dollars: What Happens Next?

Imagine this: a business offers you 1.2 million dollars in the form of a gold bar for simply pulling it from a box. Would you be able to win? Likewise, if a business loses its bet for 1.2 million dollars, does it have to honor it? 

This dream became true for the young man in the video as he took on the challenge. The clip shows him holding a heavy gold bar within a plexiglass box. The box has a small hole that allows the gold bar to go through. It has just enough space for the bar and a person’s fingertips but not much more, making it quite challenging. 

With some elbow grease and perseverance, the man successfully pulls the heavy bar out of the box. In astonishment, the crowd behind him goes wild, cheering and clapping. Unfortunately, the contest runner quickly grabs the gold bar from the man, leaving us to wonder, what happens next? 

An Attorney’s Opinion 

According to the famed attorney Ugo Lord, businesses frequently run gimmicks and ploys to incentivize clients to interact with their company. Many of these events have some stipulation that limits the amount a contestant could win. Others have fine print details that explain why some of the prizes seem too good to be true. 

In summary, navigating the legalities of these contests can be challenging, especially considering the different types of competitions viewed individually.

Luckily, some laws support consumers when it comes to competition. One common law idea is that these contests can be viewed as contracts if they seriously present themselves. According to Ugo Lord, as long as organizers present the competition seriously, the rules provided must be followed, including the rules regarding a prize or reward. Thus, in this case, the man who pulled the gold bar would be entitled to his award. 

Lotteries, Sweepstakes, and Contests 

While they may seem remarkably similar, the differences between lotteries, sweepstakes, and contexts are significant in the legal field. Each has its rules and policies that businesses must follow when creating them. 

Lotteries 

Lotteries classify events involving three or more participants. In most lotteries, each participant contributes money for a chance to win. A selection process determines which participant(s) receive more money than they initially put in. For example, the Powerball lottery operates as a traditional lottery.

Sweepstakes 

Sweepstakes are very similar to lotteries in terms of how a winner is picked. Most sweepstakes are fully left to chance in some way. What’s unique about sweepstakes legally is that they are supposed to be accessible to enter. For example, entering for a free vacation by signing up for an email newsletter is a type of sweepstakes. 

Contests 

Lastly, contests are events that usually require skill. They often take the form of games, tasks, or publicity events. Contests can be highly variable, as some are free to enter, others require more information than sweepstakes, and some even require a buy-in. One example of a contest would be the gold bar game shown in the video above. 

Why Does the Type of Challenge Matter? 

Although it may seem arbitrary, the type of challenge that a business puts on is essential, as each has very different legal implications. One great example is lotteries. Lotteries are only allowed by governmental or public entities in the U.S., not private entities or organizations. Thus, businesses must market their challenges as some other type of event. In the video above, the business is marketing their event as a competition, which means they are legally obligated to honor their reward: the 1.2 million dollar gold bar.