Legal Question in Business Law in California

Business of Raffle and/or Lottery

What are the business laws regarding raffle? If I were to start a business that would raffle weekly/monthly prizes, small and/or large, are there strict regulations?

For example, transactions would be something like giving away property valued at $25K, but the raffle would raise $30K or above. The difference will be profit for the company.

Please advise.


Asked on 5/19/03, 8:19 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Business of Raffle and/or Lottery

Generally speaking, lotteries are illegal and raffles are illegal unelss conducted by an "eligible organization." This generally means a church or charity. See California Penal Code sections 320 and 320.5, for example.

Therefore, it is not business law but rather criminal law that you must be concerned with. What you are proposing could land you in the slammer.

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Answered on 5/20/03, 1:38 am


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