In the US at least, every state determines what is and isn't a contest and what rules apply, though most of them apply to any game where the reward is money or some sort of tangible item (even if players don't have to pay anything to play). That's why if you look closely, some of the fast food contests (like McDonalds Monopoly) say something in the fine print like "Not valid in New York or Rhode Island" or something to that effect. They've determined that their game won't meet the contest laws in those states so they simply say if you live there, you can't play.
If it's free I'd say it either fall in (free) lottery or contest, it's hard to tell. Either way your best approach is simply host it in a state with no laws at all on the matter. Or if you have a good way to justify it is neither lottery or contest you might as well be fine anywhere.
Beyond the sort of obvious things, I don't know why you'd be breaking the law.
4. ELIGIBILITY: The Contest is open to individual students who are at least thirteen (13) years of age and no older than eighteen (18) years of age on November 22, 2010 who are currently enrolled in a pre-university, high school or secondary school program, and who have agreed to these Rules (“Participants”). You must demonstrate the consent of a parent or legal guardian in order to be eligible to receive any prizes as well as written proof of age and proof of enrollment in a pre-university, high school or secondary school program. The Contest is not open to residents of Cuba, Iran, Syria, North Korea, Sudan, Myanmar (Burma), or to other individuals restricted by U.S. export controls and sanctions, and is void in any other nation, state, or province where prohibited or restricted by U.S. or local law. Employees, interns, contractors, and official office-holders of (1) Google, (2) participating Open Source Organizations, (3) the parent companies, affiliates and subsidiaries of either Google or any participating Open Source Organization, and members of their immediate families (defined as parents, children, siblings and spouse, regardless of where they reside, and/or those living in the same household of each) are ineligible to participate in the Contest. You must have access to the Internet and either have or sign up for a free Google Account in order to enter.
http://www.google-melange.com/document/show/gci_program/goog...
Will I be covered if I add similar text on the Eligibility page/section on my app. Is there anything else that I need to consider.
