View Full Version : Internet Gambling/Raffling Laws
FoxCash
Aug 8, 2010, 12:22 PM
I used to participate on a forum that is trying it's hardest to gain more members as it's just starting.
The creator of the forum is currently deciding to hold a raffle to win something with a value of $300 this is the first raffle they are offering and plan to offer another item at another date.
To get in on the first raffle the "tickets" are $5 each. I have done some minor researching on the topic and posted in the forum that to my belief that a raffle of this kind is illegal to hold since the proceeds that the creator gets from those that purchase "tickets" are going to support the website and not to a charity.
I posted this when the raffle was simply an idea and my post seemingly has went ignored since the raffle is now live. Currently it seems only one member has purchased a "ticket".
The forum currently has members that are from the US and maybe one or two from another country.
This forum in the beginning had a lot of potential but I don't want my name attached to anything illegal. I appreciate any information on this.
JudyKayTee
Aug 8, 2010, 12:53 PM
Is it a not for profit?
FoxCash
Aug 8, 2010, 01:00 PM
Is it a not for profit?
I'm not sure. What is the distinction between not for profit and for profit?
**Sorry really not knowledgeable in this area.
FoxCash
Aug 9, 2010, 05:23 AM
Is it a not for profit?
Sorry, I did some research myself this is not a not for profit.
This is just some young kid that started up a forum for people to join and chat. It's not an organization, charity, Educational or Religious avenue. It's basically a chat room but in a forum.
From all that I am seeing on the forum is he started it as a way to put money in his pocket no matter the cost.
I don't really care what happens to the creator of it but out of respect for the innocent members (some of them under the age of 18) I don't want them involved in something illegal.
NeedKarma
Aug 9, 2010, 05:27 AM
We have raffles for anything and everything in our office, could be for someone's baby shower, 50/50 for the social committee fund, etc.
FoxCash
Aug 9, 2010, 06:29 AM
We have raffles for anything and everything in our office, could be for someone's baby shower, 50/50 for the social committee fund, etc.
I can understand that but isn't something done locally and per state laws different than something done online and thus becomes federal?
From my understanding online gambling is illegal. A raffle is a game of chance not skill thus making it gambling which would then make it illegal?
The thing that makes it worse is that the creator of the forum is offering a raffle for something he is claiming is worth $300 and has a description of it. There are no photos, no rules posted and no deadlines.
He is very clear in saying they are purchasing a "chance". Thus, making it a game of chance.
If I am wrong then I'll admit I'm wrong and ignore it all but if you felt people were being scammed and being involved in something illegal (this is including minors) wouldn't you try to get as much info on the situation as you could first?
I appreciate your view point though.
NeedKarma
Aug 9, 2010, 06:40 AM
I'm always wary of scams and I help others on this site to avoid them. Because of the anonymity of the internet the "receiver" of the funds is not a controlled entity as would a state lottery so I fully understand your concern here. I am not a lawyer nor am I in the US so I can't help you with the legal ramifications.
Here's a thought: if the owner of the site scammed people that would basically be the end of the forum. The best bet is to get the owner to give a detailed description of what the prize is.
BTW this stuff (raffles not registered with any authority) happen all the time within closed communities, usually the funds raised are indeed to sponsor the communities efforts.
excon
Aug 9, 2010, 07:01 AM
This forum in the beginning had a lot of potential but I don't want my name attached to anything illegal.Hello F:
I don't see a question. If you don't want your name attached, DON'T attach it. Yes, it's illegal on myriad fronts. But, you want to do MORE than that, don't you? You want to snitch on the guy.
excon
FoxCash
Aug 9, 2010, 07:27 AM
Hello F:
I don't see a question. If you don't want your name attached, DON'T attach it. Yes, it's illegal on myriad fronts. But, you wanna do MORE than that, don't you? You wanna snitch on the guy.
excon
I apologize, My question is are holding raffles on line when you're not an organization, charity or the other things used for raffles legal? If you're just a forum that is just for chatting and you hold a raffle with the funds made from the raffle benefit yourself and nothing else is that legal?
To answer your question, No I don't want to snitch on the guy. I have posted on his forum and tried to steer him in the clear on information that to my knowledge is correct but it has gone ignored.
I don't want to see people get scammed. My hope is that he will stop all that he is doing, come clean to the members that are trying to help him and restart this forum on the correct and legal front. Not look at it as a money making venture. If he is willing to do that then I am willing to be apart of it again.
I'm just looking to get my facts straight before I proceed with anything anymore. I've said it already but I'll say it again if I'm wrong I will admit it. I will apologize and I won't pursue it anymore.
excon
Aug 9, 2010, 08:09 AM
Hello again, f:
Just because a raffle is illegal, doesn't mean it's a scam. He absolutely might award the prizes he says he's going to do. But, just because it isn't a scam, doesn't mean it's legal, either.
Scam or not, gambling is illegal, and you already KNOW a raffle is gambling. It's a violation of state & federal laws.
excon
FoxCash
Aug 9, 2010, 08:48 AM
Thank you excon
I will pass the information over to the owner of the forum in attempt to steer him in the right direction since I can see where it could have looked like I just wanted to snitch on him. Hoping he does the correct and legal thing
Thanks again.