So I am in the process of scoping out venues for tournaments for my future chess club. I found what looks like it could be perfect in a non-profit bridge club in my town with a really compatible space. And they really want to work with me. But they are very afraid that the chess club model of charging an entry fee to fund monetary prize purses will fall afoul of Florida state gambling laws. I saw mention somewhere that some insurance companies won’t issue special event insurance to chess tournaments because of the same concern.
Can anyone speak to this? Is there precedent legally where this has been looked at and ruled that chess tournaments are ok in this regards?
I certainly told them that this is the standard way for chess tournaments to be run, and that there are many organizations in Florida running them regularly, but they want something more reassuring than that.
Not being an attorney nor having looked at the Florida law, I don’t know if it draws a distinction between games of chance and games of skill, and what I’ve been told by an attorney about Nebraska law isn’t relevant to other states.
I wonder if the bridge club offers cash prizes for any of the events it holds? Or local golf courses?
I’m reminded of the W. C. Fields quote about whether something was a game of chance: Not the way I run it, no.
This particular club does not do cash prizes although I would be shocked to learn that bridge clubs in general around Florida don’t. Although I am a bridge player as well as a chess player, I haven’t played at any of the Florida bridge clubs yet.
The law does specifically say that betting on games of skill is not permitted, so I think legally the question is whether paying an entry fee is betting. I think it kind of sounds absurd to think paying an entry fee to play in a tourney is betting. It is an entirely different thing than putting a wager on the result of a game. However, my feelings about it aren’t enough to convince them so I’m hoping to find some more convincing info for them.
The US Open has been held in Florida quite a few times, I don’t recall it having been raided.
A friend used to be a staff attorney at the Nebraska Lottery Commission, there are a lot of nuances in the Nebraska law that carve out exceptions to what is considered ‘gambling’ and what is not. Florida may have similar laws.
I guess the specific part that concerns them is if the purse is directly derived from the entry fees. There apparently is something in the law that makes a distinction about that. The distinction being that something like a golf tournament has the prize fund put forward by sponsors
This is a legal opinion they sent me as example:
Opinion written by The Honorable Lawson Lamar State Attorney for the Ninth Judicial Circuit of Florida:
"In gamblers’ lingo, ‘stake, bet or wager’ are synonymous and refer to the money or other thing of value put up by the parties thereto with the understanding that one or the other gets the whole for nothing but on the turn of a card, the result of a race, or some trick of magic. A ‘purse, prize, or premium’ has a broader significance. If offered by one (who in no way competes for it) to the successful contestant in a fete of mental or physical skill, it is not generally condemned as gambling , while if contested for in a game of cards or other game of chance, it is so considered. . . . It is also banned as gambling if created . . . by paying admissions to the game . . . or otherwise contributing to a fund from which the ‘purse, prize, or premium’ contested for is paid, and wherein the winner gains, and the other contestants lose all." (e.s.)
You’re going to need to contact a Florida attorney to get a real answer that your venue might accept.
However, I want to point out some other opinions from the Florida AG:
Question Two
Under the “Bonus Program” plan, the same basic rules of the 10K Promotion plan apply except that the proceeds of the promotion are not distributed until 44 “Bonus Program” properties have been sold. At that time, the accumulated $11,000 is distributed to the realtor/salesman who has sold the most of the listed properties. In case of a tie, the proceeds are divided among those tied.
While the elements of a prize and consideration previously discussed in Question One are applicable to the Bonus Program, the lack of a showing that the element of chance predominates in awarding the prize precludes a finding that this promotion plan is a lottery. The $11,000 award is based upon the salesmanship skill and perseverance of the winner in tallying more sales than his competitors. The skills involved are no less evident than those involved in scoring highest in a game of pool;[10] or assembling a jigsaw puzzle.[11] In each of the above situations, this office found that skill predominated over chance so as to preclude a lottery finding.
“We turn next to F.S.A. s. 849.14 which prohibits betting on the result of a trial or contest of skill. It is the [Attorney General’s] contention that the playing of [games of skill] falls unquestionably within the bounds of this provision. Defendant’s position is arguable. But the more logical interpretation is that the legislature intended by enacting F.S.A. s. 849.14 to proscribe ‘wagering’ on the results of ball games, races, prize fights and the like as opposed to ‘playing’ games of skill for prizes. . . . To adopt defendant’s construction we would have to find all contests of skill or ability in which there is an entry fee and prizes to be gambling. The list could be endless: golf tournaments, dog shows, beauty contests . . . to name a few. No one seriously considers such activities to be gambling. . . .”[11] https://www.myfloridalegal.com/ag-opinions/slot-machines-games-dependent-on-players-skill
The above, particularly the second one describing golf tournaments etc., seems directly analogous.
However, I am not a Florida lawyer and the above is not legal advice; if you need a legal opinion to get the venue happy, you’ll have to talk to one of them.
You should particularly find a Florida attorney who specializes in gambling law. This area of the law may be too niche for a general practitioner to handle.
I do not know the answer for Florida, but when I ran a chess club in Las Vegas, Nevada, I also wondered about the same issue. I contacted the Nevada Gaming Commission who told me that because chess is a game of skill, not chance, then it doesn’t fall under their jurisdiction.
Chess and games of skill are usually not considered gambling, as there’s no element of chance or luck involved in the game.
I remember a famous example of how Bridge defended itself against the accusation that it was a game of luck. The defender asked what someone with 13 spades should bid, and the other person said 7 Spades, which would be a grand slam and worth lots of points, and he would make the contract. But that’s the wrong answer because the other team is going to bid 7 No Trump. They’ll go set, but they will lose fewer points.
I guess the specific part that concerns them is if the purse is directly derived from the entry fees.
Unconditionally guaranteeing the prizes would seem to get around this (and is good policy to boot–don’t guarantee more than you can afford to lose).
Bridge culture is different. Money prizes are almost nonexistent. Professional players are generally paid by their patron partners, who are in it for the masterpoints.