View Poll Results: Selling credits for auctions, is it gambling?

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  • YES

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  • NO

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  1. #1
    Merchant & ABW Ambassador
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    Question Is selling credits for auction(s) considered gambling?
    Just want to get some feedback about this.

    If I am selling credits that must be purchased with cash and in turn, those who buy those credits must use it to bid for items in an auction.

    Is this considered gambling? Therefore, it should be regulated.

  2. #2
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    Yes it is ..
    People are losing their shirts bidding up some stupid companies like swoopo .. These are GAMBLING sites in disguise to lure innocent shoppers

  3. #3
    ABW Ambassador meadowmufn's Avatar
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    I'm not sure exactly what this is in reference to, but I think anyone who bids at auction has an understanding that they may not win the item in question. I'm not sure that buying credits in order to participate in the auction would be considered gambling. If eBay instituted an annual membership in order to bid (which would obviously be a bad idea), would that be considered gambling? IMO, no.

    Now, the question of whether or not it should be regulated is not necessarily tied to the question of whether or not it could be considered gambling. And I think that is essentially what you are asking. "Should this practice be regulated?" Am I correct?
    -Don't criticize anyone til you've walked a mile in their shoes. Then when you do criticize them, you'll be a mile away and have their shoes.
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  4. #4
    Moderator BurgerBoy's Avatar
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    You know - I think this was discussed here at ABW in the past about this same company and it wasn't well received here.

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  5. #5
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    Paying for each bid is different than annual memberships.
    Bidders are losing their shirts and some on auction sites like swoopo while this shady German based company is milking huge profits from innocent consumers in the US

  6. #6
    ABW Ambassador meadowmufn's Avatar
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    Quote Originally Posted by redtagdeals
    Paying for each bid is different than annual memberships.
    Bidders are losing their shirts and some on auction sites like swoopo while this shady German based company is milking huge profits from innocent consumers in the US
    Ok, I see what you guys are talking about here. I checked out the Swoopo site and see that you have to pay for each bid. Stupid business model. What amazes me is that people would actually pay for each bid.
    -Don't criticize anyone til you've walked a mile in their shoes. Then when you do criticize them, you'll be a mile away and have their shoes.
    - Silence is golden. Duct Tape is silver.

  7. #7
    ABW Ambassador simcat's Avatar
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    Swoopo is closer to a lottery than an auction. (from what I know about it)

    While penny auctions appear to have much in common with lotteries and other forms of gambling, they appear to avoid being regulated as such. Bidrivals.com, for example, operates from Malta, provides a legal advice statement explaining why it is not a lottery
    wikipedia

  8. #8
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    I think Congress or State Attorneys should ban sites like Swoopo immediately. They are lottery / gambling sites that need to be REGULATED ..

  9. #9
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    Quote Originally Posted by meadowmufn
    "Should this practice be regulated?" Am I correct?
    Well, it needs to be YES, it is considered "gambling" or "nope". If it is gambling, then it should be regulated, no doubt.

    Quote Originally Posted by redtagdeals
    Paying for each bid is different than annual memberships.
    I have to agree. Most auction houses like Christie's might charge entrance fees or processing fees, but will never charge you to place multiple bids.

    *actually, for Christie's.. "Auctions are open to the public. There is no admission fee"
    Quote Originally Posted by meadowmufn
    Stupid business model. What amazes me is that people would actually pay for each bid.
    I spent some time looking at the auctions and by a rough calculation, they sold a Nokia N97 phone for close to $1900 after all the paying bidders, etc. It is sold on Nokia.com for $571
    Last edited by Eric Ewe; November 5th, 2009 at 05:30 PM.

  10. #10
    ABW Ambassador Boom or Bust's Avatar
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    Quote Originally Posted by BurgerBoy
    You know - I think this was discussed here at ABW in the past about this same company and it wasn't well received here.
    http://forum.abestweb.com/showthread.php?t=106103
    Last edited by BurgerBoy; November 5th, 2009 at 06:55 PM.

  11. #11
    ABW Ambassador meadowmufn's Avatar
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    Quote Originally Posted by Eric Ewe
    Well, it needs to be YES, it is considered "gambling" or "nope". If it is gambling, then it should be regulated, no doubt.
    My point was that even if it's not legally considered gambling, it might need to be regulated to protect consumers. A determination as to whether or not it's gambling does not need to be made in order to decide if it should be regulated or not.
    -Don't criticize anyone til you've walked a mile in their shoes. Then when you do criticize them, you'll be a mile away and have their shoes.
    - Silence is golden. Duct Tape is silver.

  12. #12
    ABW Ambassador simcat's Avatar
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    saw this on the comment section on another forum.

    check out the 2 links below. They are for 2 totally different closed auctions for different items. One on the U.S. site. One on the U.K. site. One in $. One in .

    Look at the bid "historys". Why would they be totally identical? coincidence?

    swoopo.com/auction/sony-vaio-vgn-fw140e-16-4-core2duo-vista/104131.html

    swoopo.co.uk/auction/acer-aspire-8920g-18-4-core-2-duo-notebo/104131.html

  13. #13
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    Same auction ID in different countries could mean different products that people are bidding against each other. It is simply nothing but a SCAM perpetrated by swoopo.

    [REMOVED]
    Last edited by MichaelColey; November 5th, 2009 at 09:45 PM. Reason: Removed inappropriate comment.

  14. #14
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    Well, if this company can have different items for the same auction in different countries, this company can also have

    a) some fraudsters sitting in some remote island with 1000s of free bids bidding against real people paying 60 cents a bid!

    b) some employees or hired goons of swoopo MAY be bidding against you with their bidbutlers or otherwise

    I have seen items worth $100 selling for thousands of dollars on swoopo (if you include the BIDDING costs paid by INNOCENT bidders who lost it all)

  15. #15
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    Credit Card Companies / Paypal etc. should also pull the rug immediately for Swoopo to stop this German company from stealing the money

  16. #16
    ABW Ambassador simcat's Avatar
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    It all could be on the up-and-up. But just looks a little .

    Who knows if all these bidders or even products actually exist? They could, but not a lot of transparency is all...

  17. #17
    Moderator MichaelColey's Avatar
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    I sure hope you're not relying on a poll on ABW to determine whether something is legal or not.
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  18. #18
    ABW Ambassador simcat's Avatar
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    Yup, Even if a site IS a US based gambling site, that doesn't mean it will be shut down, there's not a lot of um... consistency there

    youbet (bet on horse racing online) they got a special exemption
    worldwinner (pay to enter online games, winner gets $$)
    tournamentgames (pay to play solitaire/other games, winner gets $$)
    gamesville (pay to enter online games, winner gets $$)
    various online bingo sites

    And then the govt deals a big smackdown on online poker sites.
    Poker is primarily a game of skill. There's a big element of luck, but the skilled players always end up ahead of the lousy ones - in the end.

  19. #19
    ABW Veteran Mr. Sal's Avatar
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    Quote Originally Posted by MichaelColey
    I sure hope you're not relying on a poll on ABW to determine whether something is legal or not.
    Good call!

  20. #20
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    What about this - http://www.haggle.com/

    Looks like the same type of deal, new merchant at SAS.

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