Legal Question in Business Law in California

Start Up business

Hi,

My partners and I considering opening the following business: virtual kiosk that will allow to participate in CA lottery. People abroad could send their numbers online and pay, we'll fill and print tickets in CA and pay authorized CA lottery dealer. We will function as messengers and charge for our services. Prizes will be send back abroad.

Are there any legal restrictions for this kind of business?

Thank you


Asked on 2/05/09, 1:10 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Start Up business

Duh. You'd better have a long chat with the CA Lottery Commission for them to explain all the criminal and civil violations your proposal would generate.

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Answered on 2/05/09, 6:10 pm
Bryan C. Becker Your Lawyer for Life.

Re: Start Up business

CA Penal Code Section 337a prohibits a person from acting as the agent of another in purchasing lottery tickets and charging for the services rendered.

The CA Attorney General has issued an opinion which explains more fully:

http://ag.ca.gov/opinions/pdfs/98-1103.pdf

Note the exception for "pooling" arrangements. Something to consider if you are flexible in your business model.

If you would like more info, feel free to contact me.

Yours truly,

Bryan

619.400.4929

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Answered on 2/05/09, 8:45 pm


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