I have a new VB forum in the last few months, we are now just under 800 members. I am wondering if anyone has any experience with internet gambling/raffle laws? I have found a way to give back to my members and support the site at the same time. Instead of charging my sponsors or members to join the site I ask them to donate a high end product or service ($500-$1000) to our free give aways. At first I just had a raffle which I sold "virtual" tickets but found out this is internet gambling. Now I sell site stickers, key chains or shirts and with the purchase of each item they get a set number of entries into the "Free Give-Away". The money I make from the items I sell supports the site, it usually also exceeds what a sponsor would be willing to pay to be on the site. I also include the text below at the end of all my "Give-Aways" which no one has taken advantage yet. Its a little harsh but it seems to work. I understand there are three things that comprise gambling: 1. Prize 2. Chance 3. Consideration Take one away and its not gambling.. I would like to think the way I am doing it I have eliminated the consideration part of gambling. Any opinions? Would you still consider it a raffle? Thanks in advance for any input..
It would still be a raffle. If you offer a way to get an entry without purchasing anything then you could claim it was a sweepstakes. The fact that the only way to get a ticket is to buy something from you makes it a raffle. I don't think your insulting line at the end would qualify. Just tell them to send an entry on a special size piece of paper, etc etc. Think of the McDonald's monopoly games or the current Subway game. They always have a way to get free game piece by mailing in a postcard or something like that.
The legalities are going to depend on what country and state you are operating in. In the state of California, sweepstakes are legal, but you have to be careful that what your running is actually a sweepstakes, and not a raffle or lottery: In addition to allowing anyone to enter the contest without paying or purchasing something, there are a number of other legal requirements too, such as disclosure of the number of contestants, odds of winning, etc. And the law is different in other states, which is why you sometimes see sweepstakes that indicate that they are not open to residents of Arizona and Florida, for example.
I echo Nonny's and browntwn's posts and I'd like to add that sweepstakes require registration in many states (and some even require you to post a bond with the state). Please be careful, because the penalties in some states are quite high. Deena ______________________________________________________________________
Thanks guys for your info.. It almost seems I need a lawyer just to decipher all the legal stuff.. I am in Michigan but my members are world wide. I don't plan to disclose my site here just to keep the lurking eyes off it that might be hanging in the background. If I am not meeting any legal requirements I would hope I would get a warning first and then I would stop. Thanks again for all the info..