Legal Question in Technology Law in Arizona

Website questions

I am building a website that gives people the chance to buy a 50X50 pixel square to advertise their site. Each square is $100. I want to hold a lotto or raffle every time $100,000 is collected, the prize will be $10,000 and only people that have bought space are eligible for the prize. I want to know how I can do this 100% legal. What kind of licenses do I need. The prize of $10,000 will be taken out of the money collected so the lotto/raffle date is at random until the $100,000 is collected. Is this legal.


Asked on 1/10/09, 7:53 pm

1 Answer from Attorneys
John Mitchell Interaction Law

Re: Website questions

This sounds like you are looking for trouble because it may violate laws against certain games of chance or gambling laws (based on chance rather than skill, and that only those who pay for something get to participate). I suggest that you speak with an AZ lawyer familiar with the laws of your state. You may also do an Internet search for "swepstakes law", "gambling law", and "games of chance" to get a pretty good picture of the lay of the land. I recall reading of a case in one state where having to pay for a postage stamp to mail in the entry form was enough to make it illegal. (That was a long time ago.) The Federal Trade Commission's website (www.ftc.gov) may also have useful information.

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Answered on 1/16/09, 12:21 am


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