Legal Question in Business Law in California

Prize wheel question.

I have a question in regards to PENAL CODE SECTION 319-329. I run a couple skateboard companies and when we go to events we set up a prize wheel. Kids spin the wheel for for a chance to win our product. Every spin wins but they have to pay either $3, $5 or $10 depending on what they want to win. Is it unlawful to do this if we donate the money received (minus product costs) to a charity organization (skate park)? We do this to promote our brand and aren't looking to make money.

Thanks.


Asked on 2/01/08, 2:38 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Prize wheel question.

You're looking at the wrong sections. The PC330 series describe your illegal games of chance which subject your company and employees operating it, and the property owner, to criminal fines and jail time. The issue is you charging money for the chance to win prizes. If you gave them away free, one spin to a customer kind of thing, no problem.

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Answered on 2/01/08, 4:47 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Prize wheel question.

Well, I think you come under 319-329, and perhaps also under 330!

What part of "promoting your brand" is not also about making money?

The charity organization could apply for a permit to operate this lottery, but you can't.

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Answered on 2/02/08, 6:57 pm


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