In general, how you differentiate a game of chance from a game of skill depends on which of the two elements has the biggest impact on the game’s outcome. (Some other restrictions in the law may still apply in order for these activities to be considered legal). However, if a competition or game awards prizes to winners based on skill, such as in shooting competitions or car racing, then it is not considered gambling.
Most state gambling laws prohibit unlicensed games, wagers, or bets that have outcomes that rely at least partially upon some element of chance. That’s why knowing your rights and the local gambling laws can stand you in good stead. So, what’s legal in casino-friendly Nevada may not be permitted across the border in gamble-shy Utah, for example. Unwittingly participating in an unlicensed gambling operation could land you in legal trouble. That’s largely because the federal government leaves it to individual states to write their own gambling laws. In the United States, gambling laws vary wildly from state to state.
