Frequently asked questions

SHORT ANSWER: In the context of our discussion, a “SWEEPSTAKES” can be any type of game or contest which a business uses to promote the sale of products or services. There must be an element of FREE ENTRY, and a LEGITIMATE product or service. A better question might be, “WHAT IS A PROMOTIONAL GAME?” Anyone considering using this business model should take some time to understand it. In the United States, as well as other parts of the world, one method commonly used by business owners to increase the awareness and sale of their goods and or services is a “PROMOTIONAL GAME”, more commonly referred to as a “Sweepstakes”. These types of games “PROMOTE” the sale of the “widget” or “widget cleaning service” by attracting the attention of those who might otherwise overlook the product/service for sale. We use “widget” as the product example because virtually ANY product or service can be promoted in this way. In the internet sweepstakes software industry, however, only the GOLD FUSION PROMOTIONAL GAME SOFTWARE SUITE is truly designed to allow you to use the system to promote almost any product or service. Most internet sweepstakes software companies only allow the user to promote a very limited number of products, usually only one! Businesses of all kinds use some form of “Promotional Game” to increase customer traffic and the sale of their particular goods or services. In most cases, the promotional game used is commonly known as a "sweepstake" or "sweepstakes". This type of promotional game has long been associated with advertising campaigns that seek to generate enthusiasm in current customers. Thus, increasing customer flow and frequency of visits, and providing motivating reactions among customers new and old by encouraging consumers to submit free entries and entries earned from purchases of the promoted goods or services into drawings of chance that are tied to product or service awareness. The basic outline of a marketing scheme using a promotional game usually looks something like this: • A Sponsor is considered the company wishing to market a product or service. • The Sponsor selects and pays for the awards and prizes to be offered by the promotion • The Sponsor may use an outside company to provide the logistics of the promotion or game. The nuts and bolts of how the contest is ran. • The Sponsor will then use both past winners and future potential winners as advertisement to drive more business through their doors, both real and virtual. Think "PUBLISHERS CLEARING HOUSE" or "McDonald's MONOPOLY GAME" or "My COKE REWARDS" from the Coca-Cola Company, as a few examples. The prizes offered may vary widely in value and type. A broad spectrum of prizes can be covered in a single promotion, or there may be only one type of prize. The value of the prizes offered can range from nothing, to less than one dollar, to literally millions of dollars! Other types of prizes and can be in the form of food, merchandise from the sponsor, trips, cars, homes, electronics...virtually anything! As we said before, most internet sweepstakes software companies only promote one product, usually internet time or workstation time. Only the GOLD FUSION PROMOTIONAL GAME SOFTWARE SUITE allows you, the business owner, to convert all your products or services into promotable items supported by exciting games! The GOLD FUSION PROMOTIONAL GAME SOFTWARE SUITE allows business owners to thank their customers with fun to play, exciting, and entertaining games that offer a reward for their patronage. To find out how the GOLD FUSION PROMOTIONAL GAME SOFTWARE SUITE could help you sell more widgets

SHORT ANSWER: YES! Sweepstakes in general and most sweepstakes software used correctly to promote sale of products and or services, have generally found to be legal when challenged, mainly because of the element of free entry. HOWEVER…the short, simple answer does not take in to account the perception of sweepstakes and sweepstakes software’s used in many locations. And PERCEPTION can be problematic! Any business wishing to use any type of promotional game should seek competent legal counsel. (UUGH! Yes, a “lawyer”!) So,…..having said that, we have to say this! STOP! Read this! The information provided herein is not intended to be legal advice. Promotional game software products should be used only under the advice of competent, knowledgeable, legal counsel who can advise the user how to lawfully operate in their jurisdiction. The user must not assume that all software products and features are lawful for use in all jurisdictions, WE DISCLAIM ALL WARRANTIES TO THAT EFFECT. Now that the legal junk is out of the way, let’s take a common sense look at the situation. “Sweepstakes” have received a bad rap in many areas due to the fact that some software providers and some operators did not know or take into account all of the variables involved in their industry. In some cases, officials have acted in haste and misunderstanding and took the path of least resistance and went with the “Let the judge sort it out” mentality. Many times, honest errors were made on both sides, with no malice intended. At other times, there have been operators who skirted the law, and still others who intentionally defrauded the public by saying they were something they were not! When this happens, all businesses who even vaguely resemble the offenders get painted with the same brush! And in the rush to judgment, businesses and people totally unrelated to the real offenders get swept up in the consequences! This is unfortunate, but a reality. Which is why it is critical that a business owner have a way to distinguish themselves from the rest of the pack! There have also been officials who went so far as to “not care what the law says” (yes they actually said that!) and harassed sweepstakes operators simply because of personal preferences or prejudices. However, most officials simply do not “KNOW”... so they say “NO”! They have so much on their plate, and so little guidance or worse, confusing guidance from the lawmakers, they err on their side of caution. The Gold Fusion Software suite has the tools to educate officials if they are willing to listen. (that part we cannot control!) As long as you stay within their guidelines, almost every state in the United States allows Sweepstakes as a legitimate form of business promotion. Remember just because it is true not everyone knows it or believes it! (Some still think the earth is flat! I kid you not!) Not every county clerk at every courthouse knows the difference between what is allowed and what is not. Almost without exception they will fall back on saying "No" when they do not "Know"! Seeking sound advice from experienced and knowledgeable people is always a good idea period. When you're considering investing your hard-earned greenbacks into something...it is an essential requirement! So get good council and informed advice before investing into ANY business, not just one involving a Promotional Game Software package. To find out how Gold Fusion’s tools can be used distinguish yourself from the pack and educate officials

Most companies run into trouble when there is confusion between the promotional game they are operating and gambling. So, what is the difference? What is gambling and what is not gambling? The difference is not as simple and cut & dried as some software companies want you to think! Let’s look at the most common path most companies take to avoid stepping over the line, and then we will compare how the GOLD FUSION SOFTWARE SUITE’s addresses the issue of compliance. There are 3 ingredients that are most commonly used to define gambling or a lottery. These are: CHANCE, PRIZE and CONSIDERATION. Let's relate them to something more familiar, like, three ingredient Peanut Butter Cookies! To make Peanut Butter Cookies, you mix 3 ingredients; peanut butter, sugar, eggs, if you leave out any one ingredient, what you end up with is not cookies! In the same way if you remove any one of the three ingredients of gambling, CHANCE, PRIZE or CONSIDERATION, then what you have is not Gambling! Let's break down the meaning of these common ingredients one at a time and view them in the context of our discussion. • CONSIDERATION: Something of value given or received to induce the exchange of goods or services. This generally viewed as “Pay to Play.” If you have to pay to play, and there is no way to play unless you pay, then something of value has been given and received, so there is CONSIDERATION. PRIZE: A reward for victory or superiority, something worth striving for or valued highly. In promotional games, prizes can be anything customers would desire and be willing to work for. CHANCE: Something that happens unpredictably without discernible human intention or observable cause. If someone participates in an activity that costs them something of value, in which they have no way to know the outcome, they are taking a chance. Generally taking a chance means you risk losing something of value if things don’t go your way. So, to recap: A promotional game will probably be considered gambling if: ‘I have no choice but to give something of value to play a game of chance where I may receive a prize if I win.” The question then is; How do most sweepstakes or promotional games try to avoid getting into trouble with gambling laws? Answer? Most SWEEPSTAKES companies and SWEEPSTAKES SOFTWARE companies, depend solely on FREE ENTRY to remove consideration from the list of ingredients! After all, it is widely accepted that if a contestant can enter and play the game for free, there is no consideration involved. Even if that same customer can play more times or receive more entries with the purchase of goods or services. While FREE ENTRY as a sustainable defense has been the commonly accepted lore in the industry, it has been challenged and defeated on occasion because of other factors. We will discuss that more later, but the main reason was lack of proof! Assuming for a moment you have a software suite like GOLD FUSION where you can prove Free Entry, let’s examine this idea of True Free Entry = Not Gambling, by comparing it to some things we KNOW are gambling and see how they stack up! State sponsored Lotteries are GAMBLING, no one disputes this, correct? What do you NOT get with a State Sponsored Lottery? Do you receive? • Free Tickets? No • Free Entry? No • Free Entry with Purchase of Product? No • Predictable Outcome? No How about Casinos? That’s GAMBLING, right? What do you NOT GET from a CASINO? Do you get: • Free Play with No Purchase? No • Free Entry? No (well, most don’t charge to come in the door so, maybe!) • Free Entry with Purchase of Product? No • Predictable Outcome? No Casinos in fact, do just the opposite! If you spend enough on gambling, you can get free products & services! When you take the time to examine the facts, it is easy to point out the difference between a real promotional game system and gambling. The Gold Fusion Software Suite gives you to tools to demonstrate the difference easily and quickly. To find out more about how Gold Fusion’s compliance theory and tools, contact us. When you take the time to examine the facts, it is easy to point out the difference between a real promotional game system and gambling. The Gold Fusion Software Suite gives you to tools to demonstrate the difference easily and quickly.

SHORT ANSWER: PROBABLY! But that does not necessarily mean that the “sweepstakes” you wish to use or the manner in which you wish to operate is legal. Each state is unique, and many have lots of hoops you have to jump through in order to be on the right side of the law! The Gold Fusion Software suite offers more options to facilitate compliance than any other internet sweepstakes software company in the industry.* As we have grown and developed our customer base and our software, many requests for options have been built into our system. Here are some of the controls and function options available with the Gold Fusion Promotional Game Software suite: • Enable/Disable Skill Mode Level 1 & 2 • Enable/Disable Prereval Mode • Enable/Disable Show Win Throughout Game • Enable/Disable Non-Sweepstakes Mode • Enable/Disable Doors Mode • Enable/Disable Show Next Win Mode • Enable/Disable Remote Finite Id Retrieval Mode • Enable/Disable Always Win Mode • Enable/Disable Community Board • Enable/Disable Jackpots • Enable/Disable Adjust points played • Enable/Disable Kiosk • Enable/Disable Client Privacy Mode • Enable/Disable Tournament Mode • And More! In addition, because we are a custom software company, if you need a modification to meet the standards in your jurisdiction, we can usually develop the changes you need for a modest development fee, and possibly no fee at all! All of this, combined with our Patent Pending Full Disclosure feature, create a strong platform from which to navigate the sometimes-hostile waters of compliance! To find out more about Gold Fusion's Patent Pending Full Disclosure Feature, and how it can apply to your business, Contact us

When challenged, many software companies and sponsors have not been able to prove that they actually issued free entries, or that the free entries were used by a significant portion of their customers or that they had actually awarded prizes to free entries. To break it down even further, the most common reasons a sweepstakes promotion is challenged as a gambling scheme are: • Lack of proof of free entry • Lack of proof of issuing and utilization of free entry • Lack of proof of awarding prizes to contestants from free entries • Lack of proof of a legitimate product or service • Lack of proof of a demand for their promoted product or service • Lack of proof of use of their promoted product or service It is automatically assumed that the promotional game has prizes and chance, so when the operator or the software providers is challenged and have no answer for the questions of “Is this really Free Entry?’ & “Do you really have a real product?” it is then also automatically assumed that “This must be gambling!”. Gold Fusion Software Suite addresses these issues with VERIFIABLE FREE ENTRY, TRACKABLE FREE ENTRY USE, and reports that show AWARDS to FREE ENTRY participants! Hopefully you will never need to prove any of those things to anyone! But if you ever do, it is comforting to know that the Gold Fusion Promotional Game Software suite can easily demonstrate verifiable free entry, and awards to Free Entry participants! Compare this important feature with other software providers before you make any decisions. What if the challenge you face is whether or not the product you are promoting for sale is a legitimate product? Your Customer Care Representative can show you a method others have used to easily and convincingly demonstrate that the product offered for sale is a legitimate product. To find out more about how Gold Fusion’s reports and tools can help if needed, contact us. When you take the time to examine the facts, it is easy to point out the difference between a real promotional game system and gambling. The Gold Fusion Software Suite gives you to tools to demonstrate the difference easily and quickly.