How do they bypass traditional laws?

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In the podcast My First Million, there are several examples of bypassing traditional laws and regulations:

  1. Bypassing Lottery Rules: Shaan Puri discussed a service that lets people play the lottery from their phone legally by sending someone to physically buy the lottery ticket. This method circumvents the ban on running an online lottery by having a third party purchase the ticket and custody it for the user 1.

  2. Using Stripe's Terms of Service: Shaan Puri mentioned how an entrepreneur used Stripe's prohibited activities (like get-rich-quick schemes and cannabis) as a prospecting list to target companies that needed alternative payment solutions. The entrepreneur then found a small Canadian bank willing to work with these companies, thereby bypassing Stripe's restrictions 2.

  3. Creative Cash Flow with FOIA: Syed Balkhi discussed leveraging the Freedom of Information Act (FOIA) to procure advantageous data from government agencies, such as contracts for construction projects or contact information for nursing school graduates, which he used for targeted marketing campaigns 3.

    Online Lottery Task Rabbit

    Shaan and Sam discuss a business that allows people to play the lottery from their phone by sending someone to physically buy the ticket for them. The service allows for convenience and low friction, making it an attractive option for users.
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  4. Regulatory Opportunities: Joe Lonsdale highlighted how businesses can leverage upcoming regulatory requirements to create new products or services that comply with these rules, thus turning regulatory constraints into business opportunities 4.

  5. Fraud and Corruption: Shaan Puri and Andrew Wilkinson discussed how bribery and corruption in certain countries like India and Indonesia are common. Greasing intermediaries can sometimes be a prerequisite for doing business in these regions, though they also acknowledged the inherent risks and unethical nature of such practices 5.

These examples provide a glimpse into various methods entrepreneurs use to navigate and sometimes exploit the legal system or regulatory environments.

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