New Jersey v. Deluzio

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


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.

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

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