New Jersey v. Deluzio

Is a pyramid scheme is lottery under New Jersey State anti-gambling laws?

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The New Jersey Supreme Court ruled that a pyramid scheme is not a lottery in New Jersey. The Court, in a per curium opinion, set aside the criminal convictions of several defendants for violations of the state anti-gambling laws. In doing so, the Court adopted the reasoning of the Appellate Division that the program had some legitimacy to it therefore circumventing the anti-lottery laws. One judge vigorously dissented, contending that other states have had little trouble finding the 3 statutory elements of a lottery present in pyramid schemes, consideration, a prize, and chance.

Case and case summary are also available online at: http://www.mlmlegal.com/legal-cases/NewJersey_v_Deluzio.php

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Published In: Civil Procedure Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:State, 3rd Circuit, New Jersey | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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