I have a unique idea for a twist on online raffling. Along the lines of (vaguely), visitors can buy a $1 ticket to potentially win a prize. If I follow through with this idea, I know I will need to consult a lawyer, but I’d like to see if I can get some free answers first :).
Do I need any special license to run a raffle in the US?
Does anyone know of any payment handling services I could use (PayPal does not allow raffle tickets to be sold thru them)? Or would a merchant account be the way to go?
Is there any standard protocol I must abide by when randomly choosing the winner (I was just going to write a script to generate a random # within the number of tickets sold, and the rand. number would be the winning ticket #).
Do I need to document how the winner was chosen? So that if someone wanted to “check up” on the fairness of how it was handled?
Any suggestions on how I could convince the visitor that this is a legit raffle - which it will be (besides professional design/content). Because as you know a raffle would fail without particiaption.
You couldn’t even hold a raffle for their residents. However what you could do is something like what freelotto does where it’s all free but if you want you can pay for an automated registration system that registers you each day. And also they bombard you with SPAM if you sign up for free. You have to opt-out of like 10 “categories” before you stop getting spam from them.
As JakeJeck said, you would have to check with each state it’s available in.
90% of them will not allow it, unless it’s for charity and run by a bonafide charity.
You will have to check with your state’s Attorney’s General office for input from them. My thinking is that it can’t happen – look how difficult it is to start a state lottery. However, check with your state for a final ruling.
Okay, small question before I either call it quits or get legal consultation-
Here’s some of what I read about KS law
Therefore, to have a legal activity/fundraiser, your group must not require that a person make a donation or contribution to your cause in order to participate. That is, all contributions must be strictly voluntary.
In order to assist organizations interested in fund raising activities of this nature to comply with the law, we suggest that any promotional materials, tickets, signs, or advertisements should bear a statement similar to the following:
“There is no fee or charge to participate in this (raffle/casino night). Participation is free. You are under no obligation to make a contribution and you may not be barred from participation if you choose not to make a contribution.”
So my question is. To “get around the law” - would it be possible to have ppl buy access to a members only area where they can enter the raffle (free). So they are buying the membership which allows them to view the html page that has the raffle entry. So technically the raffle is free, but the membership costs money.
I got this from paypal when I sent a question about using paypal to accept payment for raffles.
Dear So & So,
Hello, my name is Raymond and I am happy to assist you with your question
regarding receiving payment through your PayPal account. In reviewing your
I can confirm that there should be no problem you receiving payments for
those tickets through your PayPal account.
If you have any further questions, please feel free to contact us again.
Sincerely,
Raymond
PayPal Community Support
PayPal, an eBay Company
But as far as other state to state laws as mentioned above, Seek Paid Legal. I did not pursue my idea any further.
The words “no purchase necessary” keep coming to mind - like even for those games that show up on soda bottles. If you look carefully in the fine print, it gives an address to main a non-purchase entry to. If you require membership in order to enter, then it may be “purchase necssary”, which may cause a problem. IANAL so the above is just a musing.
You could partner with a legit charity and have them obtain a license if their state. Then you run the raffle and take a management fee. We have done this is the past.
I used to run charityraffles.org and what we did was deep in our tos we put no purchase required but to enter you had to send in a snail mail letter to register. In two years I never got a free entry via the mail.
