Penny-auctions are not gambling says Smokoo

Venom Rush

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So any form of competition that has a charge is considered gambling? For instance, a website where users buy credits to enter into a competition to win an LCD tv is gambling?

And if a game of skill isn't considered gambling then it's safe to say that online black jack and poker isn't gambling!
 

BLIXEMPIE

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Skill? Please enlighten me. Do you refer to the action of clicking the left mouse button when the pointer is resting on a huge icon flashing on a PC screen?
 

Xzib1t

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Of course it won't be gambling in your eyes Smooko, but to the rest of the world it is!

Chances of winning are very slim, for any human!
 

Venom Rush

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Skill? Please enlighten me. Do you refer to the action of clicking the left mouse button when the pointer is resting on a huge icon flashing on a PC screen?
Do yourself a favour and research poker and black jack.
 

Jan

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So any form of competition that has a charge is considered gambling? For instance, a website where users buy credits to enter into a competition to win an LCD tv is gambling?
I think it depends on the nature of the competition. If it is a "lucky draw" then I believe it will be considered an illegal lottery.
 

Venom Rush

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I think it depends on the nature of the competition. If it is a "lucky draw" then I believe it will be considered an illegal lottery.
So assuming it's an illegal lottery would a gambling license be required to operate legally?
 

Jan

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So assuming it's an illegal lottery would a gambling license be required to operate legally?
Unfortunately you can't get a license to run a lottery. To my knowledge the lottery board only licenses one lottery to legally operate in South Africa at a time, and currently that's the Lotto National Lottery.

I'm no lawyer, but my understanding from listening to and reading the comments of legal experts is that in order to run such a competition legally you would have to turn it into a game of skill, by asking a question (no matter how easy) or somesuch.

I *think* it can work if you let people enter for free. Why those SMS competitions are still allowed to operate I don't know, as it certainly seems as if you're paying in entrance fee (VAS SMS rates versus normal SMS rates) to stand a chance of winning.
 

SaiyanZ

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A good user will win 70% of all auctions they participate in, Pays said.
I lol'd at this. This is not mathematically possible even if there are just 2 people bidding. Each person will win 50% of the time if they are both good bidders.
With 10 people bidding and say there are 2 good bidders and 8 bad bidders who never win at all, each good bidder will only win at max 50% of the auctions.
With a 100 bidders you can forget about winning. What are the chances that you are the only good bidder if there is such a thing? Nothing...
 

killadoob

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Skill? Autobots and auto bidding?

No skill is winning a poker tournament because it actually requires some thought, that is like saying a slot machine takes skill.

Have they been checked out? Do they actually give away the massive prizes?

Why doesn't MYBB send a team to go check it out? Could be the gateway to something massive for this site. it also kills me seeing those smokoo ads, actually to the point of installing an ad blocker because you can see it's a scam a mile away and it is being promoted by this site. Not cool.

I know business is business but when your business is a well regarded IT/sex tip site some may think smokoo are legit and lose money
 
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ToxicBunny

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Unfortunately for Smokoo, the chances are very very high that Penny-Auctions will be declared gambling in this country.
 

3p1c

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Tey spend a CRAP load on adwords campaigns, sheesh must be close to R10 000 a week, looking at how often their content is being displayed.... I know as ive spent smilar anounts to get the same CTR at my last company.

Problem is they netting all the unsuspecting clientelle who dont know better and are blowing cash for ***kol. Eish is all i can say, sCAM is all i can scream
 

extremist

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I lol'd at this. This is not mathematically possible even if there are just 2 people bidding. Each person will win 50% of the time if they are both good bidders.

With 10 people bidding and say there are 2 good bidders and 8 bad bidders who never win at all, each good bidder will only win at max 50% of the auctions.

With a 100 bidders you can forget about winning. What are the chances that you are the only good bidder if there is such a thing? Nothing...
Your use of the phrase "mathematically possible" demonstrates a lack of understanding of both mathematics and statistics.

Assuming just two (or just few) bidders is the first mistake. Smokoo's model works because lots of different users want the same item.

Also, it's probably worth considering that Smokoo has placed limits on how many auctions you may participate in in a 30 day period - that could affect people's win ratios.
 
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