I would like to know what I would need to do in order to legally have a online raffle. I import car parts from europe for Audi's and VW's. There are plenty of forums online that would allow me to post this raffle, where it would be $10 to enter and ALL proceeds plus my contribution of 10% would be used to by whatever the winner wanted (as far as OEM car parts). It would be a great time to get some advertising, and I would be happy to organise it, but I also don't want to be breaking too many laws in the process. I have seen this done on some different motorsports forums, Does anybody know what would need to be done to make it legal online? Thanks for any feed back, if its NOT possible, please let me know also. Joseph

wowsers, 30 posts and no reply. Nobody has any Ideas? I just dont want to get this running then have a legal semi truck smash me! Any links would be apprecaited also! Joseph

I'd be very careful with this type of promotion. What you've described sounds a lot like a lottery to me, and that is dangerous ground to walk on.

We're working on a promo where the customer is entered into a drawing for a Gift Certificate every time they make a purchase. Even there, when the big boys do a drawing it seems like they always offer a "no purchase necessary" way to enter, I image because they are required by law.

I'm not sure who to ask about these issues, but we too are working on it. I'll post anything I find.

very appreciated. Good point... There has to be a way to register it or something. I will do the same if I find any info!

I apologize for not posting... I don't have an answer. From my novice experience in these tyoes of things... I tend to agree with the above comments. Even the simplest promotion usually requries more legal considerations than one can imagine...

You are doing the right thing by considering legal issues before deploying sucha a promotion... while you most likely wouldn't get nailed... its not worth the risk.

The only thing I know for sure with these is you must have a Policy or Rules page with a disclaimer.

I know we are currently running a Lanscaping Giveaway on Liquid Fence please feel free to look at our Rules for ours.

I would suggest that you know the laws regarding this type of promotion. You could begin with your local jurisdiction and be aware that some of these things are illegal in some US jurisdictions. Here's a brief article that may help you begin in the right direction. http://www.entrepreneur.com/article/0,4621,307794,00.html

That is a very informative article kathy.....

WOW!

Great Information. I knew some things in that article, but never really took contests that serious in terms of state laws. I always have my rules posted and permission, but it is good to know other things.

Good basic information, looks like the best thing to do it consult an attorney or someone of the likes. I am sure a para-legal can do most of the same things as long as that person is versed in the area you are looking at.

Good Luck, personally I like the contest portion best, seems mush easier to control!

Can never hurt to have an attorney look at anything you put together as a protection for yourself.

I tried the easy - look at the colorado laws way, and look like it would be imporssible as it stands, unless I "sponsored it" through a local community group of some sort. I am looking into do that now - as it seems vary vaige- well see! Thanks for the article!

I did hours of research on the area of online raffles. I obtained a lot of input over the course of a month. Basically the "Online Raffle" era hasn’t reached our generation yet and is still in a grey area. It's illegal in every state to hosting an online raffle that requires an entry fee to enter a draw or in any way. All raffle draws must be done in jurisdiction of that state obeying their laws. Why is online gambling legal then? Well if you run a web site anywhere outside the US that allows online gambling with a proper license, we will call this "Point A" then players use that website from "Point B" anywhere in the US to make a bet, is considered legal.

I came to the conclusion, it would be best to do the same thing with online raffles. Startup a corporation in another country that allows online gambling and obtain a gambling license. Some countries don’t have laws on online raffles just online gambling. However, it hasn’t been determined if a raffle is considered a gambling activity. Gambling is considered acts of Lotteries involving cash prizes and casino gaming. My advice is to contact a lawyer in another country like Malta, Costa Rica or Belize which allows Online Gambling with a legal gambling license.

Hope I made everything clear. Good luck.

Jeff

Great post Jeff!

Don't fight the State, they don't like competition.
(ie: Lottto, Scratch Off Tickets, Daily Numbers, Pick Four, Mega Millions, Power Ball, etc., etc., etc.).


PS: Welcome to M/C Jeff!