Are Raffles 'Allowed'?

[JollyElm]

As opposed to selling a card outright, is someone allowed to conduct (say $5 a pop) a raffle instead for a noteworthy card? Sort of like the way a set break is done...but with only the one winner?

Obviously, I'm not talking about getting a license or filling out forms (or whatever, and of course proper taxes would be paid) and all that. I mean can someone just sell slots in a raffle and go forward with it? The obvious answer is, "No!!! Duh!!!" but is that, in fact, the case?

Thanks.

[Casey2296]

I raffled a couple of Hank Aaron cards to raise money for the NLBM here, was a lot of fun, I don't see a problem doing it for profit, just run it by Leon for the green light. I love the idea of paying $20 for a $200 card, just make sure the odds are realistic.

[BobC]

Originally Posted by Casey2296

I raffled a couple of Hank Aaron cards to raise money for the NLBM here, was a lot of fun, I don't see a problem doing it for profit, just run it by Leon for the green light. I love the idea of paying $20 for a $200 card, just make sure the odds are realistic.

Not 100% certain, but that may be considered gambling, depending on what state you're in. If not doing it for charity through a properly licensed and recognized 501(c)(3) organization, you may need some kind of license/permit/registration or something like that as well. And even if a proper charity, could still have some state or local filing required because of the gambling aspect. And definitely not sure of the issues and implications of doing that online and then dealing with people across state lines. The idea I believe with breakers is that everyone sort of of agrees to go in together to pay for and split up the cost of whatever it is that is being sold. My understanding is they try to see that everyone gets something so that what was paid for their spot isn't just gone, like it would be if they had put it down at the roullete table in some casino and just lost it. Theoretically what all breakers due is in reality a form of gambling, but obviously the way they all do it has not been legally challenged anywhere in the U.S. to date, at least not to my knowledge. Good luck.

[Casey2296]

Good points on the for profit angle, could get complicated.

[Cliff Bowman]

I remember there were raffles here for Graig Kreindler to do a painting of your choice of an iconic player or game moment, how is that any different?

[JollyElm]

Thanks for weighing in, guys. It seems to be the proverbial slippery slope I assumed it was.

[swarmee]

On Facebook and other message boards, they're called "razzes" and normally illegal based on the state you live in. However, the odds of the authorities being contacted is low. More likely is that some of your slot buyers will request refunds for PayPal since they didn't receive anything and raffles are against the TOS of PayPal. About a year ago, PayPal suspended the accounts of many Razz runners and Group Breakers who did not provide a shipped item back to every person who paid them. In some cases, I believe they also kept the money still in the account.
So I would say overall, they're far more risky than you would think.

[BobC]

Originally Posted by swarmee

On Facebook and other message boards, they're called "razzes" and normally illegal based on the state you live in. However, the odds of the authorities being contacted is low. More likely is that some of your slot buyers will request refunds for PayPal since they didn't receive anything and raffles are against the TOS of PayPal. About a year ago, PayPal suspended the accounts of many Razz runners and Group Breakers who did not provide a shipped item back to every person who paid them. In some cases, I believe they also kept the money still in the account.
So I would say overall, they're far more risky than you would think.

Like I was saying, you have to be careful depending on what state you are in. There is what I think is a fairly simple fix though. Be sure to include other cards, maybe less valuable commons, and make sure you note everyone buying a raffle ticket gets something. That sounds like it would take care of the Paypal TOS issue at least. Good luck.