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ARTICLE · 26 JANUARY 2016

NYC Marathon Drawing An Illegal Lottery?

Klein Moynihan Turco LLP
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Last Thursday, two Utah residents filed a class action complaint against New York Road Runners, Inc. ("Road Runners"), the organizer and operator of the New York City Marathon (the "Marathon"), alleging that Road Runners are conducting an illegal lottery to select a limited number of runners for the Marathon.

United StatesMedia, Telecoms, IT, Entertainment
David O. Klein
David O. Klein
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Last Thursday, two Utah residents filed a class action complaint against New York Road Runners, Inc. ("Road Runners"), the organizer and operator of the New York City Marathon (the "Marathon"), alleging that Road Runners are conducting an illegal lottery to select a limited number of runners for the Marathon.

How can sponsors of sweepstakes, contests and drawings minimize their risk of legal liability?

Marathon Drawing

In order to compete in the Marathon, those who do not meet certain guaranteed entry criteria (e.g., donating time or money to designated charities or running a qualifying time in another race) must apply for a general entry drawing (the "Drawing"). According to court documents filed by the Plaintiffs, in order to enter the Drawing, prospective runners are required to pay Road Runners a non-refundable "processing fee" of $11. The Plaintiffs allege that over 80,000 prospective runners have participated in the Drawing since 2010, and that fewer than

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