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The Relation of Penny Auction Sites to Gambling

By Limken Thomas Subscribe to RSS | July 15th 2012 | Views:
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How much can be said about gambling, and what connection gambling has to penny auctions sites is a broadly discussed issue. Certain countries have already introduced legislation considering penny bidding and pay-out system, while others are expected to follow shortly. The best penny auction sites however use “clear” payments politics and are not subject to the legislative arrangements, for instance certain sites use this type of auctions to publicize online vendors and build up a certain reputation to the seller, as well as providing opportunity for successful and efficient exchange of goods and money.

However, many experts report there are serious issues related to the penny auction sites. The best penny auctions sites are web-pages where it is possible to bid for number of various products possibly starting at the price of 1 penny, or 1 cent. This looks great, the opportunities it brings, to think so it could get you a good deal on items that have greater value, but with low interest in bidding, everything is possible. So to speak, it is almost too good to be true. And it is, to certain degree, because as many times the trick is in the detail. The main problem seems to be the bidding system or better said the final resolution of the trade and payouts.

On the other hand, the down-side of the penny auction sites is that every bid costs money just to be able to participate and that does not include any part of the final price whilethe best penny auction sites pay out the whole generated sum of money to the seller, which is consistent with the Californian legislation. By calculation the site generates huge amounts of money and experts report that Californian authorities already issued the fore-mentioned regulation about the auction`s payout, as they demand all the generated money to be paid out to the seller.

However, there are multiple various approaches available and one of these approaches that penny auction sites use is to keep certain percentage of the accumulated sum, and pay out the main funds. The “problem” with this is the ratio they use, and the availability of information about that. The best penny auction sites build their businesses on reputation and have detailed information about the whole bidding and selling process available on their web-pages for visitors to see. The main difference seems to be in the professional level of different companies that provide online bidding services and space.

An objective conclusion would follow the experts` opinion that there are legal and somewhat illegal aspects to penny auctions sites althoughthe users say it is a matter of marketing approach. It seems that the best penny auction sites follow strictly professional level of conduction business while certain sites try to scam people, although the “scam” happens due to people`s own will and participation. The legislation in California has marked these bidding systems as sort of gambling and they have implemented strict regulations considering the bidding and the actual sales process, including the conditions of pay outs.

Limken Thomas - About Author:
PennyAuctionOnline.com site is updated when needs be with the current traffic rankings of the top 10 Penny Auction Sites online.He has applied his knowledge and understanding to a wide variety of penny auction sites.

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