[sooooooo]

Although I am not a lawyer, in my opinion Wizards of the Coast, and thus Hasbro, is facing enormous legal liability. Historically, they have been extremely ignorant in the legal realm with Magic Online. When they initially launched Magic Online, for at least a year they held tournaments where the prize structure was based upon the amount of entrants, despite the fact that this is clearly against US law as it mimics an online lottery. After I reported this to Magic Online(as well as my credit card company, who provided me with a full refund when I cited the laws Magic Online broke), they removed this prize structure within a month.

Currently, to the best of my knowledge, although I have not been on Magic Online for a long time, all tournaments have prize structures fixed before entry starts.

While they may or may not be currently breaking federal laws(this is up to legal debate), they are most certainly breaking numerous state laws by allowing users with credit cards in those states to win prizes online. They somehow believe having a waiver where the user must check that they understand their own state laws, will release them of all liability. This is akin to a poker site being run in the US saying: "Hey, we know your credit card is from the US, but its up to you to police yourself. We only officially do business with citizens outside the US" This would never happen, and that is why every poker site was based outside the US. They thought this would allow them to get away with the "the user should police themselves with regards to their laws." However, even that excuse is now failing.

Magic Online not only creates the concept of a 1$ ticket, but they actively endorse merchants on their website by setting up trading rooms where it is blatantly clear that tickets can be traded for cash. How on earth no one from Hasbro's legal team has discovered this yet is beyond me.