Comments on: Online Raffle Site

Question: Online Raffle Site

Napierzaza — Fri, 04 Nov 2005 14:48:11 -0800

I was thinking of making my own raffle website. Where a limited number of tickets is sold for a certain product or money amount and a raffle is drawn. Is there any legality to this practice? Is there anything I can look up in order to research such a thing in Canada and America? I've heard of previous sites being illegal, how can I make it legal?

By: Kickstart70

Kickstart70 — Fri, 04 Nov 2005 14:54:49 -0800

We looked into this to a very large degree in BC. What it basically boiled down to was a requirement for a license (and therefore a lot of paperwork and time spent) for each individual raffle. The cost-profit ratio made it impossible to get off the ground with actually being part of the lottery corporation itself.

By: jellicle

jellicle — Fri, 04 Nov 2005 15:00:33 -0800

Lotteries are typically illegal unless conducted by governments or religious or charitable organizations. I doubt there is any jurisdiction in Canada or the U.S. where this isn't true.

You could make it legal by:

a) becoming a government or religious or charitable organization
b) changing the law

By: Admiral Haddock

Admiral Haddock — Fri, 04 Nov 2005 16:15:13 -0800

So, on to plan B: make a waffle website. Mmm... waffles.

By: ilsa

ilsa — Fri, 04 Nov 2005 21:23:05 -0800

The rules on games of chance vary from state to state. You will need to research the rules in your home state. The one time I was involved with a group that considered holding a raffle (in Texas), we would that the legal requirements outweighed the potential benefit. In some states (Michigan), the rules are change depending on whether or not your raffle is a one-time promotion or a regular way of doing business.

By: Napierzaza

Napierzaza — Fri, 04 Nov 2005 22:35:08 -0800

According to this all I have to do is have

1)A skill testing question
2)No purchase entry

Am I right? I don't like the no purchase entry idea.

By: alms

alms — Sat, 05 Nov 2005 06:46:14 -0800

IANAL but I believe that Napierzaza is correct with the further note that you need one of those characteristics, not both.

So, for example, lots of businesses have "no purchase necessary" contests (those these do seem to be invalid in some states in the US).

Also, it is not uncommon to hear about someone "giving away" their house to the person who can write the best essay about why they want to run a bed and breakfast in it, or something, with an "entry fee" of $250.

In any case, I'd talk to a lawyer before you invested significant time into this.