Review of the Legality of a Lottery-like Advertising Business Model

One of the biggest characteristics of game-related laws in Korea is the strict control over games with gambling elements. A company, developing and providing a mobile advertising platform, was developing interactive advertising content that allows consumers to directly participate and enjoy, beyond simply displayed advertisements.

However, among A company's interactive advertising content, there were advertisements in the form of simple games, such as spinning a wheel, similar to spinning a wheel at a cosmetics store to provide simple prizes like sample cosmetics. It was advertising content that rewards points when spinning a wheel that appears on a PC or mobile device.

It might seem like advertising content completely unrelated to games, but Law firm Veat reviewed the following in order: (1) whether the advertising content is regulated by the Game Industry Promotion Act (hereinafter referred to as the “Game Industry Law”), (2) whether the advertising content includes gambling elements regulated by the Game Industry Law, (3) whether the content is subject to game rating classification, so that applicable regulations for the wheel spinning advertising content could be identified in advance.

It is unfortunate that strict legal regulations exist even in the game and advertising fields where creativity and imagination can lead to innovative content. However, startups often have to embark on a difficult journey of developing services that do not violate laws, even in such situations.

Law firm Veat will faithfully fulfill the role of a helper illuminating the path for startups in the maze of complex regulations and laws.

Thank you.

Law firm Veat