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TV Shows' Text Messaging Contests Illegal?

Fees for TXT Contests ChallengedThose text-message based competitions -- the ones that charge you a buck or so for a chance at winning something or another -- may be on the verge of extinction. The text message-based "interactive" games offered by TV shows 'The Apprentice,' 'Deal or No Deal,' and 'One vs. 100' are the source of a class action lawsuit filed in Los Angeles.

As it turns out, asking someone for money and giving them nothing in return other than a chance to win prize is a violation of the Standard Lottery Rule. The law states that if there is "no bona fide product or service" being offered to those who enter, it's considered illegal gambling and a serious no-no.

We just want to know this: How is this any different than state-run lotteries that offer little slips of useless paper in exchange for our money?

From textually.org

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