Should penny auction websites like swoopo.com be outlawed or regulated because they are similar to gambling?
Online penny auctions sites are taking the internet by storm. Each day several new penny auction sites open and each day several fail. Some people have started questioning if these sites should be considered as gambling. Penny auctions involve placing items up for sale, or bid, in a similar fashion to Ebay. This is where the similarity ends. In order to place bids on a penny auction, you must purchase bid credits. If you then find that you are interested in an item up for sale you place a bid, which increases the price of the item by a set amount, usually a penny. There is no waiting until the last minute to place a bid for a set amount, you must engage in a battle against anyone else that wants the item. Penny auction sites make money based on the bid credits, which are NOT returned if you lose the item. Patience and research will allow for some wins that can net up to 99% off the retail pricing of items. Mostly gift cards, electronics and the like are seen on these sites for sale. A
